Many owners of new or even established businesses tend to forget, or do not even realize, that they must file a Form 941 with the IRS. This form must be filed quarterly and with the April 30th deadline quickly approaching, it is important that you file. A Form 941 is directly related to payroll taxes. Employers are responsible for withholding federal income taxes, in addition to other taxes, from each employee’s paycheck and subsequently forwarding it to the IRS.
Generally, any person or business that pays employees must file this form each quarter in order to avoid payroll tax problems and harassment from the IRS. Failure to file a Form 941 generally results in a penalty of the tax amount due, capping out at 25 percent. If you make the payments late or pay less than you owe the IRS will being to charge you anywhere from 2-15 percent. To prepare a Form 941, you must state the number of employees you have, in addition to the total wages paid and taxes withheld.
As experienced tax attorneys and CPA’s, we have assisted many businesses who have failed to file this form and understand the problems that can occur. It is important to note that the four annual deadlines for filing are April 30, July 31, October 31 and January 31. If you have missed the January 31 deadline, it is imperative that you file immediately or seek assistance from the professionals at Michigan Pure Tax Resolution to attempt to prevent the IRS repercussions. We are available 24/7 at (248) 329-1160. Our attorneys welcome the opportunity to speak with you.