IRS Form 941 Balance Due? What Could Happen Next Year — The Good, The Bad, And The Ugly

Trust fund taxes are due, and it’s time to pay up. Your actions now could impact your business not only in the immediate future but in the long-term. Highlighted below are a few potential scenarios:

The Good: You File And Pay On Time

The best case scenario for IRS Form 941? You correctly file the document on a quarterly basis. Typically, Form 941 is due on the last day of the month after each quarter ends. For example, the first quarter ends in March, so Form 941 is due the last day of April. Additionally, you should make Federal Tax Deposits based on the amount calculated in the IRS Lookback Period. Depending on the extent of taxes reported, you may need to deposit monthly or semiweekly.

The Bad: You Accidentally File Late Or Cannot Pay Up

With so many obligations on your plate, you may forget to file or make your required deposits on time. Unfortunately, your forgetfulness could cause big problems down the road. Depending on how late your file, you may be forced to pay extensive late fees. These increase significantly as time goes by.

The Ugly: You’re Accused of Intentionally Not Filing

The IRS can be surprisingly forgiving of employers who simply forget to file Form 941 or make Federal Tax Deposits. That all changes when the concept of ‘willful failure to pay’ enters the picture. If you’re accused of intentionally failing to file Form 941 or not paying trust fund taxes, you could face harsh consequences from the IRS. These may include levies or, in especially severe cases, criminal charges.

Don’t let your IRS situation go from bad to ugly. The sooner you contact the Highland Tax Group, the better. Call 720-398-6088 today to learn how we can bring your IRS nightmare to a close.