Resolving an IRS Form 941 Tax Issue: Do’s And Don’ts

You’ve diligently withheld taxes on behalf of your employees. Despite these efforts, you’ve received communication about your failure to file IRS Form 941 or pay the proper amount. Don’t panic — these issues might be easier to resolve than you anticipate. Keep these do’s and don’ts in mind as you proceed:

Do: Determine If You Have Reasonable Cause for Filing Late

In select cases, the IRS may waive fees or allow employers to avoid other consequences after Form 941 is filed late. As such, it may be worth your while to see if your circumstances constitute reasonable cause. With a little effort, your late filing or payment fees could be significantly reduced or even removed completely.

Don’t: Procrastinate After the Deadline Passes

With so much on your plate as a busy entrepreneur, you may be tempted to delay filing Form 941 a bit longer so you can deal with other concerns. What’s another week?

If you’re like most people, however, it’s never just a week of procrastination. Typically, this extends months, during which you’ll suffer added fees for your fail to file or pay.

The sooner you tackle your 941 tax issues, the better. Once you’ve determined the nature of the issue and the potential for reasonable cause, make a concerted effort to resolve the problem.

Do: Get Help With Complex 941 Tax Issues

If you face harsh repercussions such as a lien, consider seeking outside help from an enrolled agent. If the issue is not resolved correctly, you could face not only steep fees, but also, problems with creditors. A tax specialist can advocate on your behalf to ensure a swift and desirable conclusion to your 941 tax ordeal.

If you’re worried about the threat of IRS Form 941 penalties or liens, don’t delay — get in touch with an enrolled agent from the Highland Tax Group today.