Editing Taxation in the United States (section)

===Penalties===

Failure to timely and properly pay federal payroll taxes results in an automatic penalty of 2% to 10%.<ref>{{USC|26|6656}}.</ref> Similar state and local penalties apply. Failure to properly file monthly or quarterly returns may result in additional penalties. Failure to file Forms W-2 results in an automatic penalty of up to $50 per form not timely filed.<ref>{{USC|26|6721}}.</ref> State and local penalties vary by jurisdiction.

A particularly severe penalty applies where federal income tax withholding and Social Security taxes are not paid to the IRS. The penalty of up to 100% of the amount not paid can be assessed against the employer entity as well as any person (such as a corporate officer) having control or custody of the funds from which payment should have been made.<ref>{{USC|26|6672}}.</ref>