I have filed my quarterly payroll taxes, but are behind in deposits. What will the IRS do to me?

On: May 10, 2019

Most employers are required to file Form 941, Employer’s Quarterly Federal Tax Return, to report both the federal income taxes you withheld and the FICA taxes you withheld and paid during a calendar quarter. (Employers who qualify for annual reporting/payment, file Form 944.) Form 941, Employer’s Quarterly Federal Tax Return. Employers use this for to: report income taxes, social security tax, or Medicare tax withheld from employee’s paychecks, and. pay the employer’s portion of social security or Medicare tax. For deposits made 1-5 days late, the penalty is 2% of the past due amount. For deposits made 6-15 days late, the payroll tax penalty is 5% of the past due amount. For deposits made 16 or more days late, the penalty amount is 10% of the past due amount. Please note: IRS interest on said liabilities and penalties accrues daily. The IRS takes payroll taxes very seriously. The money withheld from the employees’ paychecks is considered to be held in trust for the employee to pay their taxes to the IRS. Failure to pay, especially on an ongoing basis is considered paramount to theft, and, in the most serious cases, is reported to the IRS criminal investigations unit. These types of cases are regularly referred to revenue officers and field agents for detailed investigation and collections enforcement. The writer would strongly suggest retaining a tax attorney in such instances as they sometimes result in extensive negotiations, business restructurings, bankruptcy, closures, personal liability and personal tax resolution.