IRS Logo
Print - Click this link to Print this page

ITG FAQ #8 Answer-What are the deposit penalties?

You may be subject to penalties for failure to deposit timely, failure to deposit the required amount, or failure to use EFTPS when required. For amounts not properly or timely deposited, the penalty rates are:

  • 2% - Deposits made 1 to 5 days late.
  • 5% - Deposits made 6 to 15 days late.
  • 10% - Deposits made 16 or more days late. Also applies to amounts paid
    within 10 days of the date of the first notice the IRS sent asking for the tax due.
  • 10% - Deposits made at an unauthorized financial institution, deposits paid directly to the IRS or paid with your tax return (see Publication 15, section 11 for exceptions for payments with returns).
  • 10% - Amounts subject to electronic deposit requirements but not deposited using EFTPS.
  • 15% - Amounts still unpaid more than 10 days after the date of the first notice the IRS sent asking for the tax due or the day on which you receive notice and demand for immediate payment, whichever is earlier.

Return to List of FAQs

Page Last Reviewed or Updated: 15-Aug-2014