As a business owner, one of the tax forms you must file each year is for payroll. Let’s face it though – business can get busy, and you may have simply forgotten to file the taxes. While this was a mere accident on your end, the IRS does not forgive or go easy on businesses who are delinquent with their payroll taxes in Chicago, IL. You need to be represented firmly and aggressively to avoid the consequences that may arise.
In Illinois, a quarterly tax return is due for your business’s payroll taxes. What this means for you is that you MUST file this tax return by the end of the quarter to avoid the return being late. In addition to the tax return, you are also responsible for submitting your portion of the taxes as well. Failure to do this will send up a red flag with the IRS.
Once you have fallen behind on your payroll taxes or tax returns, it can be hard to catch up, especially if the IRS slaps you with penalties and interest. You may quickly feel like you are falling into a financial debt well.
Don’t try to claw your way out of this situation alone and reach out to the experts at Leading Tax Group today. Our team is experienced and will help you get back on track with your payroll taxes and returns.
Penalties for Late Payroll Tax Returns
Penalties and fines for late payroll tax returns are hefty and can quickly add up leaving you in debt. When trying to determine how much you might owe, the number of penalties will depend on your current situation. For example, if you only have late payments, then the fines that you face will be calculated based on how late you are. A deposit that is 5 days late carries a fine of 2 percent, deposits that are 6 to 15 days late come with a 5 percent penalty, and deposits after the 16-day mark have a 10 percent penalty.
Once the IRS sends you a demand letter, you can expect to pay a 15 percent penalty for this. As you can see, these fines add up very quickly and can become overwhelming for anyone.
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