Will the IRS penalize an employer for failing to deposit and report withheld taxes?

Author: Ryan F. Donovan

Yes. Failure to make tax deposits on time, failure to file tax returns in a timely manner and failure to provide complete information and/or the total amount due on either of those will usually lead to penalties by the IRS. An employer acting in good faith can sometimes get an abatement of penalties, but ignorance or simply not having the money will not usually suffice as a reason for penalty abatement.