Business owners have until July 31 to e-file Q2 Form 941 or face penalties up to 25%, and TaxBandits offers a fast, compliant solution to avoid them.
ROCK HILL, SC / ACCESS Newswire / July 23, 2025 / Business owners across the nation have just eight days remaining (until July 31) to file Form 941 for quarter 2 (Q2), 2025, before facing automatic penalties that could reach 25% of taxes owed.
According to IRS data for the 2024 tax year, over 550,000 employment tax returns were delinquent, resulting in almost $4.5 million in penalties assessed.
Immediate Financial Impact of Missing The Form 941 Deadline
Form 941, the Employer’s Quarterly Federal Tax Return, requires all businesses with employees to report wages, tips and tax withholdings from April through June 2025. Even if an employer did not pay any wages, tips or withholdings, filers are typically required to file a zero report. Missing this deadline-even by a few days-can lead to significant consequences for businesses of all sizes.
Here is the IRS penalty structure that escalates quickly for late filings:
Month 1: 5% of unpaid taxes
Month 2: Additional 5% (10% total)
Months 3-5: 5% per month (maximum 25%)
Additional interest charges compound monthly
Potential payroll tax audits within 90 days of missed deadlines
“Many business owners don’t realize that Form 941 penalties are assessed immediately on August 1st-there’s no grace period. We’ve seen relatively small companies face $10,000+ penalties simply because they missed the deadline by a few days,” said CEO of SPAN Enterprises Naga Palanisamy.
With risks of penalties and audits, filers can feel overwhelmed. It was reported that 37% of small businesses were anxious or scared of filing taxes.
Essential Information Needed for Filing
To complete Form 941 successfully, businesses must compile Q2 2025 data including:
Total wages, tips and compensation paid to all employees
Federal income tax, Social Security and Medicare tax withholdings
Employer contributions to Social Security and Medicare
Any payroll tax deposits made during the quarter
Total number of employees who received wages
Streamlined 941 Filing Solution from TaxBandits
TaxBandits, an IRS-authorized e-file provider, has processed over 2 million Form 941 filings with a 99.7% acceptance rate. Their platform addresses common filing challenges through:
Error Prevention Technology
Efficiency Features for Tax Professionals
Bulk upload capability for multiple clients
Copy data from previous quarters
Secure client portal for e-signatures
IRS status updates
Emergency Filing Support
Extended customer service hours through July 31
Streamlined process for last-minute filers
Direct access to customer success specialists
In addition to these exclusive features, TaxBandits also facilitates a fast and effortless zero reporting feature for businesses that have no wages/taxes to report for the quarter.
How Businesses Can Take Action Before July 31
With processing times varying based on IRS server capacity, TaxBandits recommends completing filings by July 29 to ensure on-time submission.
“The cost of our filing service is almost always significantly less than the IRS penalty for not filing,” said Palanisamy. “For businesses with tight cash flow, avoiding these penalties can be the difference between a profitable quarter and a struggling one.”
With TaxBandits, tax professionals managing multiple clients can utilize bulk filing tools to process dozens of returns simultaneously, significantly reducing the risk of missing deadlines across their client base.
For immediate access to Form 941 filing solutions, businesses are encouraged to visit http://www.TaxBandits.com or call their dedicated deadline support line at 704-684-4751.
About TaxBandits
TaxBandits is a SOC 2 Certified, IRS-authorized e-file provider dedicated to providing a simplified filing experience for businesses, service providers and tax professionals of every size. They specialize in Forms 1099, W-2, 940, 941, 1095-B, 1095-C and W-9.
About SPAN Enterprises
SPAN Enterprises is headquartered in Rock Hill, South Carolina, and has been developing industry-leading software tools for e-filing and business management solutions for over a decade. The SPAN portfolio of products includes TaxBandits, ACAwise, ExpressExtension, 123PayStubs and TruckLogics.
Direct all media inquiries to Marketing Manager Caleb Flachman at [email protected].
SOURCE: TaxBandits
