According to the Internal Revenue Service, failing to file an employment tax return can trigger penalties of up to 25 percent of the unpaid amount, plus interest that compounds daily. For agricultural employers who skipped filing the 2015 Form 943, the Employer’s Annual Federal Tax Return for Agricultural Employees, the penalty has been growing for nearly a decade. This creates a significant financial burden and the risk of IRS collection actions that can threaten a farm’s livelihood.

Form 943 is more than paperwork. It is the IRS’s method of ensuring that federal income tax, Social Security taxes, and Medicare taxes withheld from farm workers’ wages are reported and paid correctly. Employers are also responsible for their matching share of Social Security and Medicare contributions, which makes the obligation even more substantial. When the form remains unfiled, the IRS considers the taxes withheld from employees’ wages as trust fund taxes. Failing to remit these taxes can result in personal liability for business owners and managers, even if the farm has closed.

This guide explains how to file an unfiled 2015 Form 943 and what relief options are available if you cannot pay in full. You will learn the penalties that apply, how the IRS calculates interest, and what programs exist to help employers manage their tax debt. The process can feel intimidating, especially with missing records or accumulated liabilities, but acting quickly is the key. Even after years of delay, Filing reduces penalties, starts the collection statute clock, and shows the IRS that you are making a reasonable faith effort to comply. By the end, you will have a clear roadmap to keep your account current and avoid costly mistakes.

What Is Form 943 and Who Must File?

Form 943, officially called the Employer’s Annual Federal Tax Return for Agricultural Employees, is a tax return required of farm owners and agricultural businesses. Unlike quarterly payroll forms filed by most employers, Form 943 is submitted once per year. It aims to report federal income tax withheld, Social Security taxes, and Medicare taxes from farm workers’ wages. It also reports the employer’s matching portion of Social Security and Medicare contributions. When filing, employers must calculate the federal income tax withholding taken from employees’ wages and the equal contributions they owe for Social Security and Medicare. This makes the form central to reporting payroll taxes correctly. The IRS uses the information on Form 943 to verify that agricultural employers are paying the right amount of employment tax for the calendar year.

Who Must File Form 943?

Not every agricultural employer is required to file, but most who pay farm workers will meet the IRS thresholds. There are two main tests to determine filing responsibility:

The $150 Test

If you paid an individual farm worker at least $150 in cash wages during the tax year, you must file Form 943. This rule applies even if only one employee meets the threshold.

The $2,500 Test

If the total wages paid to all farm workers during the year equaled $2,500, you must also file Form 943. This requirement applies regardless of how much any single employee earned. For example, if ten workers each earned $250, the $2,500 test is met.

Exceptions to Filing

Certain wages are not subject to this form. Household employees, such as domestic workers hired by the farm owner, are omitted. Similarly, salaries paid to non-agricultural employees are reported on other employment tax returns, not Form 943. These rules mean that almost any farm operation with hired help must file. Whether you employ seasonal harvest crews or year-round staff, Form 943 ensures the IRS accounts for taxes withheld from employees’ wages and the matching contributions from employers.

Step-by-Step Guide to Filing Your 2015 Form 943

Filing an unfiled 2015 Form 943 requires accuracy and careful preparation. The following steps outline the process, from gathering records to submitting payment. Each stage must ensure that payroll tax obligations are reported correctly and that additional penalties are avoided.

Step 1: Gather Crucial Records

Start by collecting all payroll and financial documents from the 2015 tax year. These records form the foundation of your return:

• Employee wage records: You will need the total wages paid to each farm worker. Include both full-time and seasonal employees who performed agricultural labor. These figures determine the reported Social Security taxes and Medicare taxes.
  
• Forms W-2: Copies of 2015 W-2s show federal income tax withholding and wages subject to Social Security and Medicare.
  
• Bank account and payroll reports: Bank statements and payroll service summaries confirm wages paid, deposits made, and taxes withheld.
  
• Employment tax deposits: If you made partial deposits in 2015, keep receipts or EFTPS records as proof of payment. These will offset the balance you report.

Having complete records ensures you can calculate the right amount of employment tax without relying on estimates.

Step 2: Obtain the Correct 2015 Form

Do not use the current year’s form. The IRS requires that you file the exact version for 2015, along with its instructions. You can download both from the IRS’s prior year forms archive. Using the wrong form may cause the IRS to reject your submission. For 2015, the Social Security wage base was $118,500 per employee. The Social Security tax rate was 6.2 percent for employees and employers, a combined 12.4 percent. The Medicare rate was 1.45 percent each, totaling 2.9 percent. Unlike Social Security, Medicare had no wage base limit.

Step 3: Complete the Return Line by Line

Completing the return requires careful attention. Use the instructions to follow each line:

• Lines 1-5 (Employees and Payroll Taxes): Enter the total number of agricultural employees and the wages paid. Report wages subject to Social Security and Medicare separately. Multiply the totals by the correct rates to determine the Social Security and Medicare taxes owed.
• Lines 6-11 (Adjustments and Additional Medicare Tax): If any employee earned more than $200,000 in 2015, you must withhold an additional 0.9 percent Medicare tax from that individual’s wages. This is reported on these lines. You will also enter corrections or adjustments here if you previously over-reported or under-reported amounts.
• Lines 12-16 (Deposits and Balances): Enter the total employment tax deposits made during the tax year. Subtract this from your liability to determine whether you owe additional taxes or are entitled to a refund. If you owe, payment must accompany the filing unless you arrange another option with the IRS.

Step 4: Submit and Pay

You can file Form 943 electronically through an IRS-approved e-file provider, or by mailing a paper return. Electronic filing is strongly recommended since the paper process is painfully slow and more prone to delays.

Payments may be made using the Electronic Federal Tax Payment System (EFTPS), direct debit, or by mailing a check or money order. Keep in mind:

• Payments must be received by the due date to avoid additional deposit penalty charges.
  
• If the due date falls on a weekend or federal holiday, the next business day becomes the due date.
  
• The deposit schedule depends on the size of your payroll tax liability. Some employers must make monthly deposits, while larger farms may be required to deposit semiweekly.

By filing and paying properly, you reduce interest on unpaid amounts and show the IRS that you are committed to compliance.

Penalties and Interest for Unfiled 2015 Form 943

When Form 943 goes unfiled, the IRS does not simply wait for you to submit the return. Penalties and interest begin to accumulate immediately. Over the years, these costs can grow larger than the original tax liability. Understanding how each penalty works is essential for evaluating your current balance and planning resolution options.

Failure to File and Failure to Pay Penalties

The failure to file penalty is the most severe. The IRS charges 5 percent of the unpaid tax for each month or part of a month that the return is late, up to a maximum of 25 percent. For example, if your unpaid amount was $10,000, the failure to file penalty alone could reach $2,500. In addition, there is a failure to pay a penalty of 0.5 percent per month. This continues until the tax is paid, capped at another 25 percent. The two penalties can apply together, but the monthly total cannot exceed 5 percent. If your return is more than nine years late, as in the case of the 2015 Form 943, you will almost certainly owe the maximum failure penalties.

Deposit Penalties

Agricultural employers are required to make timely deposits of employment taxes. Missing these deposit deadlines leads to separate penalties. The percentage depends on how late the deposit was made:

Comparison 1: Deposit Penalties by Delay Timeline

1. 1–5 Days Late

• Penalty: 2% of the deposit amount
• Example: $100 penalty on a $5,000 deposit

2. 6–15 Days Late

• Penalty: 5% of the deposit amount
• Example: $250 penalty on a $5,000 deposit

3. More Than 15 Days Late

• Penalty: 10% of the deposit amount
• Example: $500 penalty on a $5,000 deposit

4. After IRS Notice + 10 Days

• Penalty: 15% of the deposit amount
• Example: $750 penalty on a $5,000 deposit

These penalties could equal thousands of dollars for a farm that missed multiple deposits during 2015. Each deposit is treated separately, which means the costs can multiply quickly.

Interest on Unpaid Taxes and Penalties

Interest accrues daily on both the unpaid tax and on penalties. The IRS sets the rate quarterly, based on the federal short-term rate plus 3 percent. For taxpayers, the longer you wait to pay, the more the interest compounds. Consider an employer who owed $20,000 in 2015. The total could easily double with failure penalties and several years of interest. Even if you made partial payments, interest continues on the unpaid balance until the account is paid in full.

Why Addressing Penalties Quickly Matters

IRS notices will eventually arrive, and if ignored, the government may place a lien on your property or levy a bank account to collect what is owed. Acting before these collection steps begin gives you more flexibility. Filing the overdue federal tax return is the first step, even if you cannot immediately pay in full. By submitting the form, you stop the failure to file penalty from growing and start the ten-year collection statute clock. Understanding how the penalties work can feel overwhelming, but the key takeaway is simple: the longer the delay, the higher the cost. Filing the unfiled 2015 Form 943 immediately is the only way to limit further damage.

Trust Fund Recovery Penalty (TFRP)

The Trust Fund Recovery Penalty is one of the IRS's most serious enforcement tools. It applies when an employer collects taxes from employees’ wages but fails to remit them. The penalty equals 100 percent of the trust fund portion: the federal income tax withholding plus Social Security and Medicare employee share. This means the IRS treats the unremitted taxes as if you had taken them from your workers’ paychecks but used them for something else.

What Is the TFRP?

The penalty represents the full trust fund taxes that were withheld but never sent to the IRS. For example, if $15,000 in employee federal income tax withholding and Social Security and Medicare contributions were collected in 2015 but not deposited, the IRS can impose a penalty of $15,000. Unlike other penalties, this one is not capped and can effectively double the liability already shown on Form 943.

Who Can Be Held Liable?

The TFRP is not limited to the business itself. The IRS may assess it personally against any “responsible person.” This can include:

• Business owners and partners who had authority over payroll decisions.
  
• Corporate officers or directors who signed checks or approved payments.
  
• Employees are authorized to hire and pay workers, and decide which bills to pay.

In some cases, multiple individuals may be held jointly responsible. The IRS does not need to choose only one person; it can pursue anyone with significant control.

How the IRS Determines Willfulness

To apply the TFRP, the IRS must also prove willfulness. Willfulness does not require intent to defraud. It is enough that a person knew about the obligation and either intentionally ignored it or acted recklessly. For example, choosing to pay suppliers while leaving employment taxes unpaid may be treated as willful behavior. 

The process begins with a proposed assessment, often delivered through Letter 1153. At this stage, the IRS allows the responsible person to respond or refer evidence showing they were not in control. The penalty will be assessed if you cannot prove a lack of responsibility. The TFRP protects employees and ensures that their Social Security and Medicare credits are not lost.

Resolution Options to Handle IRS Debt

Filing the unfiled 2015 Form 943 is the first step. Once you know the total balance, the next challenge is figuring out how to pay. The IRS offers several relief programs to help employers manage their tax liability. Choosing the right option depends on your financial condition, the size of your debt, and your ability to make monthly payments.

Installment Agreements

An installment agreement allows you to pay the balance in smaller monthly amounts instead of one lump sum.

Short-Term Payment Plans (120 Days or Less):

You may qualify for a short-term plan if you owe less than $100,000 in combined taxes, penalties, and interest. These plans do not require a setup fee; the full balance must be paid within 120 days.

Long-Term Payment Plans:

For larger balances, you may request a longer repayment schedule. There are three main types:

• Guaranteed Installment Agreement: If you owe $10,000 or less and have filed all required tax returns, the IRS must accept your plan. Payments are spread across several months until the debt is cleared.
  
  
• Streamlined Installment Agreement: You may qualify without submitting detailed financial information if your balance is between $10,001 and $50,000. Payments are generally completed within 72 months.
  
  
• Non-Streamlined Agreement: For balances above $50,000, you must provide detailed financial statements, including bank account records, business assets, and income. Approval is not automatic, and the IRS will determine how much you can reasonably pay.

Penalty Relief

If penalties make up a large part of your liability, reducing them can be a significant benefit.

• First-Time Abatement (FTA): Employers with a clean filing history may qualify for first-time penalty abatement. If you filed all required returns in the three years prior and paid or arranged payment for taxes due, the IRS may remove failure-to-file and failure-to-pay penalties for 2015. Interest, however, will remain.
• Reasonable Cause Relief: If unusual circumstances prevented you from filing, you may request penalty abatement for reasonable cause. Examples include serious illness, natural disasters, or records destroyed by fire. To apply, you must file Form 843 and provide documents that support your claim. The IRS will review whether your explanation qualifies as a reasonable basis.

Offer in Compromise (OIC)

An Offer in Compromise allows you to settle your debt for less than the full unpaid amount. The IRS considers your income, assets, and ability to pay before deciding if the offer is acceptable. There are three grounds for approval:

• Doubt about Collectibility: You do not have enough income or assets to pay the full tax liability.
  
• Doubt about Liability: There is a genuine dispute about whether the amount assessed is correct.
  
• Effective Tax Administration: Even if you could technically pay, requiring full payment would cause undue hardship.

Submitting an OIC requires Form 656 and a detailed financial statement. You must also pay an application fee and an initial payment with your offer.

Currently Not Collectible (CNC) Status

If your financial condition makes payment impossible, the IRS may place your account in CNC status. The IRS will stop active collection efforts, such as bank levies, but the debt will remain. Interest continues to accrue, and the IRS will periodically review your account to see if you can pay in the future.

Comparison 2: Installment Agreement vs OIC vs CNC

1. Installment Agreement

• Best For: Taxpayers with steady cash flow who cannot pay their balance in full.
• Payment Required: Monthly payments continue until the entire balance is cleared.
• Impact on Debt: Full balance remains due, including penalties and interest.
• IRS Review: Limited to checking whether payments are made on time.

2. Offer in Compromise (OIC)

• Best For: Taxpayers with limited income and assets who cannot realistically pay the full debt.
• Payment Required: Initial payment plus the approved reduced settlement amount.
• Impact on Debt: Allows settlement for less than the total amount owed.
• IRS Review: Involves a detailed financial review of income, expenses, and assets.

3. Currently Not Collectible (CNC) Status

• Best For: Taxpayers experiencing severe financial hardship.
• Payment Required: No payments required while CNC status is active.
• Impact on Debt: Debt is not eliminated, but IRS collections are paused.
• IRS Review: Periodic reviews to determine if financial circumstances have improved.

Choosing the right resolution option can prevent further damage to your business and protect essential assets. Consulting a tax professional may help determine which program you qualify for and how to file the required forms correctly.

Preventing Future Issues

Filing the unfiled 2015 Form 943 and resolving past penalties is only part of the challenge. To protect your business in the future, it is essential to put strong systems in place that prevent missed deadlines and reporting errors. One of the most effective safeguards is implementing reliable payroll systems. Employers should use accounting software or professional payroll providers that automatically calculate Social Security and Medicare contributions, withhold the correct federal income tax, and schedule deposits. These services can also generate reports that make it easier to file Form 943 accurately at the end of the calendar year.

Maintaining accurate employee records is equally essential. Employers should track the total number of employees, wages paid each pay period, and any taxes withheld. Keeping paper and electronic copies reduces the risk of missing data if records are lost. Organized files ensure that the next tax return reflects complete and correct information. Employers should also establish a compliance calendar. Filing dates for federal tax returns, deposit deadlines, and payment due dates should be clearly marked. Setting reminders helps avoid costly mistakes. If the due date falls on a weekend or holiday, the calendar should note that the deadline is the next business day.

Regular compliance reviews are another best practice. Reviewing payroll accounts each quarter helps identify issues before they become significant problems. Businesses that hire seasonal workers or experience rapid growth should update payroll procedures immediately to reflect changes in staffing or wages. By combining payroll systems, organized records, and proactive planning, agricultural employers can file future Form 943 returns without the stress and financial risk of late filings.

Preventing Future Issues

Filing the unfiled 2015 Form 943 resolves past obligations, but long-term success depends on preventing the same mistakes from happening again. Employers should take proactive steps to strengthen payroll compliance and ensure that future tax returns are filed promptly.

• Implement reliable payroll systems: Employers should use software or professional payroll providers that correctly calculate Social Security and Medicare taxes, withhold federal income tax, and automatically schedule employment tax deposits. These tools reduce human error and simplify year-end reporting for Form 943.
  
  
• Maintain accurate employee records: Employers must track the total number of employees, wages paid, and the exact amount of taxes withheld. Keeping digital and paper copies ensures that information is available even if one set of records is lost.
  
  
• Create a compliance calendar: Deadlines for deposits, payments, and filing Form 943 should be clearly listed. If a due date falls on a weekend or holiday, note that the next business day becomes the deadline. Setting reminders lowers the risk of missed filings.
  
  
• Review accounts regularly: Employers should check payroll accounts each quarter to confirm that wages and taxes match reported amounts. Seasonal changes in workers or shifts in payroll require immediate updates to ensure accuracy.
  
  
• Consider professional support: Businesses with complex payrolls or frequent staffing changes may benefit from ongoing guidance from accountants or payroll services. These professionals can file forms, prepare reports, and advise if new IRS notices arrive.

By combining payroll technology, organized recordkeeping, and consistent reviews, agricultural employers can protect their business from future penalties and file every federal tax return on time.

Frequently Asked Questions (FAQs)

What happens if I ignore my payroll tax obligations for 2015?

If you ignore payroll tax obligations, the IRS continues to assess penalties and daily interest. Even if you already paid wages to employees, failure to file Form 943 leaves those taxes unreported. Eventually, the IRS may issue liens or levy your bank accounts. Addressing the issue quickly limits further damage and shows good faith, which can improve your chances of qualifying for penalty relief.

Can an unfiled employment tax return affect my farm workers?

Yes, an unfiled employment tax return can harm employees. Their Social Security and Medicare earnings records may be incomplete if wages are not reported. This can reduce future benefits, even though you paid wages. Filing Form 943 corrects those records. The IRS expects employers to report payroll taxes accurately to protect workers’ long-term interests, and failing to do so creates liability for both taxes and penalties.

How does the IRS treat an unpaid deposit from 2015?

An unpaid deposit is treated as a late or missing employment tax payment. The IRS applies a deposit penalty based on how many days past the due date the payment was received. For example, a 10 percent penalty applies if the unpaid deposit is more than 15 days late. Multiple missed deposits can quickly increase your overall balance, since penalties stack and interest continues until the debt is satisfied.

Can I reduce penalties on my payroll tax debt?

Yes, the IRS allows penalty relief under certain conditions. Employers may qualify for first-time penalty abatement if they have a clean history, or for reasonable cause if they can prove circumstances beyond their control. Even with penalty relief, you must still pay taxes and interest. Nonrefundable credits or payments already made may reduce the final balance, but you must file Form 943 before requesting relief.

Will filing my overdue employment tax return trigger an audit?

Filing late does not automatically trigger an audit, but it can draw attention. The IRS is generally more favorable toward taxpayers who voluntarily file overdue returns than those caught through enforcement. The risk is lower if you report paid wages accurately and attach correct supporting details. It is always better to file than leave an employment tax return unsubmitted since penalties and interest grow monthly.