IRS Publication 15 — Employer's Tax Guide (Circular E)

Schedule R (Form 943). Under certain circumstances, the IRS may waive the electronic filing requirement. To request a waiver, the CPEO must file a written request using the IRS Online Registration System for Professional Employer Organizations at least 45 days before the due date of the return for which the CPEO is unable to electronically file. For more information on filing a waiver request electronically, go to IRS.gov/CPEO. Also see Revenue Procedure 2023-18.

Penalties. For each whole or part month a return isn’t filed when required, there is a failure -to-file (FTF) penalty of 5% of the unpaid tax due with that return. The maximum penalty is generally 25% of the tax due. Also, for each whole or part month the tax is paid late, there is a failure-to-pay (FTP) penalty of 0.5% per month of the amount of tax. For individual filers only, the FTP penalty is reduced from 0.5% per month to 0.25% per month if an installment agreement is in effect. You must have filed your return on or before the due date of the return to qualify for the reduced penalty. The maximum amount of the FTP penalty is also 25% of the tax due. If both penalties apply in any month, the FTF penalty is reduced by the amount of the FTP penalty. The penalties won’t be charged if you have reasonable cause for failing to file or pay. If you receive a penalty notice, you can provide an explanation of why you believe reasonable cause exists. In addition to any penalties, interest accrues from the due date of the tax on any unpaid balance.

If income, social security, or Medicare tax that must be withheld isn’t withheld or isn’t paid, you may be personally liable for the trust fund recovery penalty. See Trust fund recovery penalty in section 11. Generally, the use of a third-party payer, such as a PSP or reporting agent, doesn’t relieve an employer of the responsibility to ensure tax returns are filed and all taxes are paid or deposited correctly and on time. However, see Certified professional employer organization (CPEO) in section 16 for an exception.

Don’t file more than one return per return period. Employers with multiple locations or divisions must file only one Form 941 per quarter or one Form 944 per year. An agricultural employer must file only one Form 943 per year. A payer of nonpayroll payments that withheld federal income tax or backup withholding must file only one Form 945 per year. Filing more than one return may result in processing delays and may require correspondence between you and the IRS. For information on making adjustments to previously filed returns, see section 13. Reminders about filing.

• Don’t report more than 1 calendar quarter on a Form 941.

• If you need Form 941, Form 943, Form 944, or Form 945, go to IRS.gov/Forms. Also see Ordering Employer Tax Forms, Instructions, and Publications, earlier.