Companies file Form 8928 to self-report the tax due for the following violations:
You will be charged an interest on all unpaid taxes beginning on the due date, even if an extension of time to file is granted. You will also be charged an interest on any penalties imposed for failure to file, negligence, fraud, gross valuation overstatements, and substantial understatements of tax. For further information on the determination of the interest rate, please visit this page: https://www.irs.gov/pub/irs-drop/rr-12-23.pdf
If you fail to file by the return due date, including extensions, you may have to pay a penalty of 5% of the unpaid taxes for each month the filing of the return is delayed, up to a maximum of 25%. Where the return is more than 60 days overdue, the minimum penalty is the lesser of the tax amount or $100. However, you will not be penalized if you can show that the failure to file was due to a reasonable cause, and attach a statement to Form 8928 explaining the cause.
You may also have to pay a penalty for nonpayment of the taxes when they are due, of 1/2 or 1% of the unpaid tax for each month, up to a maximum of 25%. Here as well, the penalty will not be imposed if you are able to demonstrate that the failure to timely pay the tax was due to reasonable cause.
Companies can file Form 7004, Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns, to request an automatic extension of time to submit Form 8928. The extension must be filed on or before the Form 8928 due date. For assistance with filing this extension, please contact Zenefits.