The IRS issues millions of penalty notices yearly to employers who miss filing deadlines. Failing to submit Form 943 for 2019 for agricultural employers can be exceptionally costly. The failure-to-file penalty alone can reach 25 percent of unpaid taxes, with additional penalties for late payments and deposits. These financial consequences add up quickly, creating a heavy burden for farm operations that often work on tight margins.

Form 943 is not just another piece of paperwork. The annual employer’s federal tax return reports Social Security tax, Medicare taxes, and federal income tax withholding for agricultural employees. Unlike Form 941, which most employers file quarterly, Form 943 is filed annually and is specific to farming operations. Missing this filing means leaving a significant gap in your federal employment tax records, which can lead to IRS enforcement actions, interest charges, and personal liability under the Trust Fund Recovery Penalty.

This guide will show you how to file the unfiled 2019 Form 943 and resolve related IRS issues. You will find step-by-step filing instructions, penalty breakdowns, and relief options such as payment plans, penalty abatement, and Offers in Compromise. Real case examples will illustrate how farms of different sizes have resolved their IRS problems. By acting now, agricultural employers can avoid escalating penalties, correct tax liabilities, and restore compliance with confidence.

What is Form 943, and Who Must File It?

Form 943 plays a critical role for agricultural employers. It ensures the IRS receives accurate reporting of wages paid to farmworkers and the associated federal employment taxes. Understanding whether you must file this form is the first step in resolving an unfiled 2019 return.

What Form 943 Covers

Form 943, Employer’s Annual Federal Tax Return for Agricultural Employees, reports Social Security tax, Medicare taxes, and federal income tax withholding for farmworkers. These taxes are considered federal employment taxes because they are collected from employees’ wages and matched by the employer. The form also records the calendar year's adjustments, credits, and total tax liability.

Who Qualifies as an Agricultural Employee

Not every worker on a farm is treated as an agricultural employee. The IRS defines agricultural employees as individuals engaged in farm-related labor such as cultivating soil, raising livestock, or harvesting crops. If you paid an employee at least $150 in annual cash wages, or your total yearly cash wages for all farmworkers reached $2,500, you must file Form 943. These thresholds are clearly explained in the agricultural employer’s tax guide.

Differences Between Form 943 and Form 941

A common point of confusion is whether to file Form 941 or Form 943. Form 941 is the quarterly return for most non-farm employers, while Form 943 is filed annually for agricultural employees. If you have both types of workers, you may be required to file both forms: Form 943 for farming wages subject to Social Security tax and Medicare wages, and Form 941 for all other employees.

Filing Deadlines and Extensions

The due date for the 2019 Form 943 was January 31, 2020. If that date fell on a legal holiday, the deadline would have shifted to the next business day. Agricultural employers that failed to meet this deadline must file immediately to stop penalties from growing. While extensions to file are not typically granted for employment tax returns, submitting the form as soon as possible is essential to reduce failure-to-file penalties.

Step-by-Step Guide on How to File Unfiled 2019 Form 943

If you missed the original deadline for filing your 2019 Form 943, you should not wait any longer. Filing now stops additional penalties from accruing and puts you back in compliance with the IRS. The process is straightforward when broken into clear steps.

1. Determine Your Filing Requirement

The IRS requires Form 943 if you paid annual cash wages of $150 or more to any farmworker, or if total salaries paid to all agricultural employees exceeded $2,500. This rule applies regardless of whether your farm is small or large. Employers must include all employees’ wages subject to Social Security tax, Medicare taxes, and federal income tax withholding.

2. Gather Employment Tax Records

Before completing the form, assemble every relevant record from the 2019 tax period. This includes:

• Annual cash wages and payroll details. Each record should show the wages paid and the amount withheld for federal taxes.
  
  
• Wage and tax statements (Forms W-2 and W-3). These documents confirm reported earnings and federal tax deposits.
  
  
• Employer identification number (EIN). This must be entered correctly to avoid IRS processing delays.
  
  
• Employment tax records showing any deposits made in 2019. Accurate records will help you calculate the total tax liability.

3. Obtain the Correct Form and Instructions

Do not use the current version of Form 943. You must download the specific 2019 version from the IRS prior-year forms section. The IRS online registration system, or IRS.gov/forms-pubs, provides access to these files. Using the wrong version could result in incorrect calculations of federal employment taxes.

4. Complete the Form Accurately

Form 943 requires you to report wages subject to Social Security tax and Medicare wages, adjustments for sick and family leave wages, third-party sick pay, and qualified health plan expenses. Employers must also calculate additional Medicare tax withholding when an employee earns over $200,000. Ensuring every line is completed accurately is crucial to avoiding interest-free tax assessments later.

5. File the Return with the IRS

Mail your completed Form 943 to the IRS processing center listed for your legal residence. Electronic filing through the IRS system is faster and reduces errors if available. Always confirm the filing address, as it can change based on location and whether a payment is enclosed.

6. Report W-2 and W-3 Forms

If you have not filed wage and tax statements for 2019, you must issue them immediately to employees and file copies with the Social Security Administration. This step ensures your reported federal tax liabilities match across all agencies.

Comparison 1: Form 943 vs Form 941 Requirements

1. Filing Frequency

• Form 943: Filed annually for the calendar year.
• Form 941: Filed quarterly.

2. Who Files

• Form 943: Agricultural employers.
• Form 941: Most non-farm employers.

3. Taxes Reported

• Form 943: Reports Social Security tax, Medicare taxes, and federal income tax withholding.
• Form 941: Reports the same taxes — Social Security, Medicare, and federal income tax withholding.

4. Wage Base

• Form 943: Based on employee wages for agricultural work.
• Form 941: Based on employee wages for non-agricultural work.

5. Related Documents

• Form 943: Includes W-2, W-3, and employment tax records.
• Form 941: Includes W-2, W-3, and quarterly deposit records.

Penalties and Interest for Late Filing

Missing the deadline for filing your 2019 Form 943 creates not only paperwork problems. The IRS applies multiple penalties that can grow rapidly if left unresolved. Understanding each penalty type and how it affects federal tax liability is essential for agricultural employers who owe tax from prior years.

• Failure to File Penalty: Filing penalty applies when Form 943 is not submitted by the due date. It equals 5 percent of the unpaid tax for each part of a month, and the return is late. This continues until it reaches 25 percent of the unpaid balance. If a return is filed more than 60 days late, the minimum penalty is the smaller of $485 or the total unpaid tax liability.
• Failure to Pay Penalty: If you filed Form 943 but did not pay the full federal employment taxes, the failure to pay penalty applies. It starts at 0.5 percent of unpaid monthly tax and may increase to 1 percent once the IRS issues a levy notice. Although smaller than the failure to file penalty, this charge compounds quickly when combined with interest and other assessments.
• Failure to Deposit Penalty: Agricultural employers must make federal tax deposits for Social Security tax, Medicare taxes, and federal income tax withholding during the year. If deposits were missed or made late in 2019, penalties range from 2 to 15 percent, depending on how late the deposit was. The penalty also applies if you underreported employment taxes or failed to follow deposit schedules.
• Interest on Unpaid Balances: Interest applies to unpaid tax and penalties. The IRS sets the rate quarterly and compounds daily until the balance is paid in full. Even a relatively small underreported tax liability from 2019 can grow significantly. Interest continues to accrue even when on a payment plan, so paying sooner reduces overall costs.
• Trust Fund Recovery Penalty (TFRP): The Trust Fund Recovery Penalty is one of the IRS's harshest measures. It applies when withheld taxes, such as Social Security and federal income tax, are not paid to the government. Responsible individuals, including owners and managers, can be held personally liable for 100 percent of these amounts. Under the Internal Revenue Code, this liability extends to anyone who had authority over federal tax deposits and willfully failed to ensure they were made.

Comparison 2: IRS Penalties for Late Form 943

1. Failure to File

• Rate: 5% per month
• Maximum: 25% of the unpaid tax
• Applies When: Form 943 is filed late beyond the due date

2. Failure to Pay

• Rate: 0.5% per month (increases to 1% after a levy notice)
• Maximum: 25% of the unpaid tax
• Applies When: Taxes are not paid by the due date

3. Failure to Deposit

• Rate: 2%–15% depending on how late the deposit is
• Maximum: 15% of the required deposit
• Applies When: Federal tax deposits are missed or submitted late

4. Interest

• Rate: Varies quarterly, compounded daily
• Maximum: No limit
• Applies When: Any tax, penalty, or interest remains unpaid

5. Trust Fund Recovery Penalty

• Rate: 100% of the trust fund taxes
• Maximum: Full liability of the withheld amount
• Applies When: Withheld employee taxes (Social Security, Medicare, or income tax) are not remitted to the IRS

IRS Relief Options for Agricultural Employers

Filing an unfiled 2019 Form 943 is only the first step. The IRS offers several relief options if you owe tax, penalties, or interest. These programs are designed to help agricultural employers resolve employment tax liability and restore compliance.

1. Payment Plans (Installment Agreements)

Agricultural employers who cannot pay their reported federal tax liabilities in full may request an installment agreement. Two options exist:

• Short-term plans: Repayment can take up to 180 days. Interest and penalties continue, but there is no setup fee.
  
  
• Long-term plans: Spread payments over several years. Setup fees apply unless you qualify for low-income relief.
  
  

Businesses owing more than $25,000 in employment tax liability may need to submit Form 433-B and demonstrate the ability to make monthly payments.

2. Penalty Abatement Programs

The IRS offers penalty relief through First Time Abatement (FTA) and reasonable cause arguments.

• First Time Abatement: Available if you filed all previous returns on time and have no penalties for the prior three tax years. It can remove failure-to-file, failure-to-pay, or failure-to-deposit penalties.
  
  
• Reasonable Cause Relief: Granted when circumstances such as illness, disaster, or record unavailability prevented timely filing. Documentation must prove that you exercised ordinary business care.

3. Offer in Compromise (OIC)

For employers unable to pay their total tax liability, an Offer in Compromise may settle the balance for less than the full amount owed. The IRS evaluates income, expenses, assets, and future earning potential.

• Doubt about Collectibility: Used when you cannot pay the full amount during the collection statute period.
  
  
• Doubt about Liability: Used when you believe the amount assessed is incorrect.
  
  
• Effective Tax Administration: Granted when full payment would cause economic hardship even though the liability is correct.

An OIC requires Form 656 and Form 433-B (OIC) and application fees unless you qualify for low-income certification.

4. Currently Not Collectible (CNC) Status

You may qualify for CNC status if your farm cannot meet basic living expenses while paying federal taxes. This temporarily suspends collection activity. Interest and penalties continue to accrue, but the IRS will not levy assets during CNC. Periodic reviews determine whether your financial condition has improved.

5. Adjustments and Corrections Using Form 943-X

Employers who made mistakes on a previously filed form must submit Form 943-X, Adjusted Employer’s Annual Federal Tax Return for Agricultural Employees. This allows you to:

• Correct federal income tax reporting errors.
  
  
• Fix the overreported federal income tax, Social Security, or Medicare tax.
  
  
• Report additional medicare tax withholding not included earlier.
  
  
• Adjust for qualified sick and family leave wages or third-party illness pay.
  
  
• Reconcile overpaid additional medicare tax or overcollected Social Security tax.

Filing an adjusted employment tax return ensures that underreported and overreported employment taxes are corrected in compliance with the Internal Revenue Code. When corrections are made promptly, employers may also request interest-free tax assessments.

Case Examples and Best Practices

Real examples show how agricultural employers have handled IRS issues when failing to file Form 943. These scenarios illustrate both the challenges and the available solutions.

Small Farm Example: Penalty Abatement Success

A family farm in California missed the 2019 due date because of medical emergencies. Their total tax liability was $8,400, with penalties reaching $3,200. By filing the return quickly and requesting First Time Abatement, they eliminated penalties and only had to pay the underlying employment tax liability. This highlights how acting promptly can save thousands.

Medium Business Example: Trust Fund Recovery Penalty Resolution

A mid-sized farm partnership in Iowa withheld federal income tax and Social Security contributions from employees' wages but failed to make federal tax deposits. The IRS assessed the Trust Fund Recovery Penalty against both partners. With professional help, they negotiated separate resolutions: one through an Offer in Compromise and the other with an installment agreement. This case shows the importance of correcting underreported employment taxes before penalties escalate.

Prominent Employer Example: Multi-Year Compliance Issues

A large agricultural employer failed to file Form 943 for three consecutive tax periods beginning in 2017. Their employment tax liability grew to more than $180,000 with added interest. With guidance from certified professional employer organizations, they filed all missing employment tax returns, corrected overreported employment taxes, and used tax preparation software to ensure accuracy. They also implemented procedures for the timely filing of sick and family leave wages and COBRA premium assistance payments.

Best Practices for Agricultural Employers

• Always file returns even if you owe tax: The penalty for filing late is far higher than the failure-to-pay penalty.
  
  
• Maintain complete employment tax records: Accurate documentation supports any request for penalty relief.
  
  
• Use tax preparation software: Automated systems reduce errors and track due dates across multiple tax periods.
  
  
• Consult reliable experts: Certified employer organizations and tax professionals can assist with compliance.
  
  
• Monitor deadlines: Mark your calendar for each tax period and legal holiday to ensure you do not miss the next due date.

Final Checklist Before You File

Before submitting your unfiled 2019 Form 943, review these crucial points. Completing this checklist reduces the risk of errors and ensures compliance with IRS rules.

1. Verify Filing Requirements: Confirm that your farm paid wages that meet the $150 or $2,500 thresholds. These paid wages determine if you must file.
   
   
2. Double-Check All Records: Ensure payroll records align with paid federal income tax, Social Security, and Medicare amounts withheld. This step prevents mismatches with employee Forms W-2 and W-3.
   
   
3. Review Payroll Tax Credit Claims: Confirm that these amounts are reported correctly if you qualify for the payroll tax credit for family leave wages or COBRA premium assistance. Credits lower your employment tax liability, but must be documented accurately.
   
   
4. Cross-Check with Other Returns: Ensure totals reported on Form 943 are consistent with your income tax return. Employers sometimes overlook adjustments when reconciling federal employment taxes with annual financial statements.
   
   
5. Correct Errors Promptly: If you discover mistakes after filing, you must file Form 943-X, Adjusted Employer’s Annual Federal Tax Return for Agricultural Employees. This lets you fix errors like overreported or underreported taxes before the IRS identifies them.
   
   

This checklist helps agricultural employers reduce costly mistakes and ensure the return is accepted without delays.

Frequently Asked Questions (FAQs)

What happens if I missed federal income tax withholding on my 2019 Form 943?

You may need to make tax adjustments if federal income tax withholding was not reported. The IRS could issue an additional Medicare tax notice if other amounts are incorrect. Employers should carefully review tax years beginning in 2019 and correct underreported taxes. Filing Form 943-X may also be necessary to fix reporting mistakes and ensure compliance with legislation enacted for employment taxes.

Can I correct errors in the reported federal income tax after filing Form 943?

Yes, if errors occurred, you can file Form 943-X to correct overreported taxes or underreported balances. The IRS allows adjustments for tax years beginning in 2019 and later. Employers should provide detailed explanations and retain records that support corrections. When correcting federal income tax, always submit the revised return promptly; otherwise, at least the rest of the penalties and interest will continue to grow until addressed.

How do I report additional medicare tax withholding properly?

Employers must include additional medicare tax withholding when an employee earns over $200,000. If it was missed, file Form 943-X to correct underreported taxes. The IRS may issue an additional medicare tax notice if problems are found during review. To avoid this, ensure payroll records are accurate and supported by documentation. Always check legislation enacted after 2019 that may update reporting instructions for future tax years.

What if my additional medicare tax amounts were overreported?

If you overreported additional medicare tax, you must file Form 943-X to correct the overreported taxes. Employers should also verify wage and deposit records to confirm whether overcollected amounts were refunded or misapplied. The IRS generally allows corrections for tax years beginning three years back. Documentation should explain the error clearly, and the corrected return can be submitted by postal service or electronically if available.

Can I still fix errors if I already filed my 2019 Form 943?

Yes, you can always file Form 943-X to make corrections. This process allows employers to fix overreported or underreported taxes, including errors tied to federal income tax withholding and additional medicare tax. Ensure you address at least the rest of the affected lines on the form. Proper filing ensures compliance with the Internal Revenue Code and prevents the IRS from pursuing more decisive enforcement actions.