Publication 80 - Circular Ss - Department Of The Treasury Page 12
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24deposit with an explanation to your local IRS office or the
10% - Amounts subject to electronic deposit
IRS service center where you file Form 941-SS, Form 943,
requirements but not deposited using EFTPS.
or Form 940. The service center addresses are provided in
15% - Amounts still unpaid more than 10 days after the
the separate instructions for Forms 941-SS, 943 and 940
date of the first notice that the IRS sent asking for
and are also available on the IRS website at
the tax due or the day on which you received
Do not use Form 8109-B, Federal Tax Deposit Coupon, in
notice and demand for immediate payment,
this situation.
whichever is earlier.
Depositing without Form 8109. If you do not have a
preprinted Form 8109, you may use Form 8109-B to make
Order in which deposits are applied. Deposits generally
deposits. Form 8109-B is an over-the-counter FTD coupon
are applied to the most recent tax liability within the return
that is not preprinted with your identifying information. You
period (quarter or year). However, if you receive a
may get this form by calling 1-800-829-4933. Be sure to
failure-to-deposit penalty notice, you may designate how
have your EIN ready when you call. You will not be able to
your payment is to be applied in order to minimize the
obtain Form 8109-B by calling 1-800-TAX-FORM.
amount of the penalty. Follow the instructions on the pen-
Use Form 8109-B to make deposits only if —
alty notice you receive. For more information on designat-
•
You are a new employer and you have been as-
ing deposits, see Rev. Proc. 2001-58. You can find Rev.
signed an EIN, but you have not received your initial
Proc. 2001-58 on page 579 of Internal Revenue Bulletin
supply of preprinted Forms 8109 or
2001-50 at
•
You have not received your resupply of preprinted
Example: Cedar, Inc. is required to make a deposit of
Forms 8109.
$1,000 on April 15 and $1,500 on May 15. It does not make
the deposit on April 15. On May 15, Cedar, Inc. deposits
Deposit record. For your records, a stub is provided
$2,000. Under the new rule, which applies deposits to the
with each FTD coupon in the coupon book. The FTD
most recent tax liability, $1,500 of the deposit is applied to
coupon itself will not be returned. It is used to credit your
the May 15 deposit and the remaining $500 is applied to
account. Your check, bank receipt, or money order is your
the April deposit. Accordingly, $500 of the April 15 liability
receipt.
remains undeposited. The penalty on this underdeposit will
How to claim credit for overpayments. If you deposited
apply as explained above.
more than the right amount of taxes for a quarter, you can
Trust fund recovery penalty. If income, social security,
choose on Form 941-SS for that quarter to have the over-
and Medicare taxes that must be withheld are not withheld
payment refunded or applied as a credit to your next
or are not deposited or paid to the United States Treasury,
return. Do not ask the depositary or EFTPS to request a
the trust fund recovery penalty may apply. The penalty is
refund from the IRS for you.
the full amount of the unpaid trust fund tax. This penalty
may apply to you if these unpaid taxes cannot be immedi-
Deposit Penalties
ately collected from the employer or business.
The trust fund recovery penalty may be imposed on all
Penalties may apply if you do not make required deposits
persons who are determined by the IRS to be responsible
on time, if you make deposits of less than the required
for collecting, accounting for, and paying over these taxes,
amount, or if you do not use EFTPS when required. The
and who acted willfully in not doing so.
penalties do not apply if any failure to make a proper and
A responsible person can be an officer or employee of
timely deposit was due to reasonable cause and not to
a corporation, a partner or employee of a partnership, an
willful neglect. For amounts not properly or timely depos-
accountant, a volunteer director/trustee, or an employee of
ited, the penalty rates are:
a sole proprietorship. A responsible person also may in-
clude one who signs checks for the business or otherwise
2% - Deposits made 1 to 5 days late.
has authority to cause the spending of business funds.
5% - Deposits made 6 to 15 days late.
Willfully means voluntarily, consciously, and intention-
ally. A responsible person acts willfully if the person knows
10% - Deposits made 16 or more days late. Also applies
the required actions are not taking place.
to amounts paid within 10 days of the date of the
first notice that the IRS sent asking for the tax
due.
9. Employer’s Returns
10% - Deposits made at an unauthorized financial
institution, paid directly to the IRS, or paid with
your tax return (but see Depositing without an
General instructions. File Form 941-SS for nonfarm
EIN on page 11 and Payment with Return on
workers and Form 943 for farmworkers. (U.S. Virgin Is-
page 8 for exceptions).
lands employers may be required to file Form 940 or Form
940-EZ for the combined wages of nonfarm workers and
farmworkers.)
The IRS sends each employer a form preaddressed
with name, address, and EIN. If you use a form that is not
Page 12
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