Filing Your Returns and Paying Taxes
Importance of Timely Deposits
     

If you do not timely pre-pay your tax using deposit coupons or ifyou were not required to make any deposit and/or did not include your payment when youfiled your return, we will charge you interest and penalties on any unpaid balance.

We may charge you penalties for not depositing employment taxestimely up to 15% of the amount not deposited, depending upon how many days late you makethe deposit.

If you do not pay withheld trust fund taxes, we may take additionalcollection action.

• We can require you to file and pay your taxes on a monthly rather than quarterly basis.
• We can also require you to open a special bank account and deposit the amounts required to be withheld within two banking days after you pay wages to your employees. If, after you are required to do so, you do not open a special account and make timely deposits, you may be found guilty of a misdemeanor.

To encourage prompt payment of withheld income and employment taxes,including Social Security and railroad retirement taxes or collected excise taxes,Congress passed a law that provides for the trust fund recovery penalty. This penalty isused as a tool for collection of unpaid employment taxes. The penalty also applies tothose excise taxes which are commonly referred to as collected excise taxes.

If you are a responsible person, we can apply this penalty againstyou immediately after you do not pay trust fund taxes in response to a notice and demandfor payment. Also, we can apply this penalty regardless of whether you are out of businessor without assets.

Caution: Once we assert the penalty, we can take collectionaction against your individual assets, such as filing a Federal tax lien if you are theresponsible person(s).

Publication 15 Circular E       Employers Tax Guide
Form 8109                               Federal TaxDeposit (FTD) Coupon