Who would use Form 941-M?

Form 941-M is specifically designed for employers who experience compliance issues related to withholding and depositing federal payroll taxes. This form is utilized to report and pay the failure-to-deposit penalties that may arise when an employer does not adhere to the necessary timelines for tax deposits or does not file their returns on time.

This form serves a crucial role in managing the responsibilities of employers who face penalties due to non-compliance. By using Form 941-M, these employers can adequately report their failures and make the necessary payments to avoid escalating penalties or enforcement actions from the IRS.

In contrast, semiweekly and monthly depositors have other reporting requirements and typically utilize Form 941 to report their taxes withheld. Therefore, they do not need to use Form 941-M unless they are also facing issues regarding compliance with their deposit requirements. The focus of Form 941-M is on those specific compliance failures related to taxes.