941 & 940 Taxes: The Requirements & Penalties for Unpaid Payroll Tax

Businesses who pay wages to employees are required to withhold federal income taxes as well as Social Security and Medicare contributions from their employee’s wages. The amounts withheld from wages are required to be remitted to the IRS on a defined deposit schedule through the Electronic Federal Tax Payment System (EFTPS). 

The IRS aggressively collects from businesses that accrue delinquencies in taxes. Collecting employment taxes it is one of the primary focuses of the Criminal Investigations Division.

Each quarter employer’s must file a 941 return which reports the amount of wages paid, the amount of federal income taxes withheld, the amount of Social Security and Medicare withholding, and their own matching contribution to Social Security and Medicare. Employers also must file an annual 940 return to report the amount of Federal Unemployment Taxes accrued.

If you are being pursued by the IRS for unpaid payroll taxes and unfiled 940 and 941 returns, our tax attorneys can fight for you. We work with businesses in all 50 states and have achieved thousands of successful outcomes for our clients.