Form 943, officially called the Employer’s Annual Federal Tax Return for Agricultural Employees, is a yearly filing requirement for farm owners and operators who pay wages to agricultural employees. This specialized employment tax return reports Social Security, Medicare taxes, and federal income tax withholding for farmworkers. While many agricultural employers keep up with their required returns, some still have unfiled tax returns from past years, including 2020, that remain unresolved.

Leaving a 2020 Form 943 unfiled can create serious problems for agricultural employers. If the tax liability is not addressed, the IRS may assess a late filing penalty, charge interest, and begin enforcement actions such as liens or levies. Failure to file and pay employment tax returns can expose business owners or responsible persons to personal liability under federal law. These risks highlight why past-due returns must be filed promptly, even if taxes are owed.

This guide will walk you through filing an unfiled 2020 Form 943 and resolving IRS issues for agricultural employers. It explains who must file, the deadlines, how to prepare and submit the form, and what happens if taxes remain unpaid. You will also learn about IRS penalties, payment plans, penalty relief options, and how to avoid future compliance problems. With step-by-step instructions and clear explanations, this article is designed to help you file returns correctly and bring your business back into good standing with the IRS.

Understanding IRS Form 943

Form 943, the Employer’s Annual Federal Tax Return for Agricultural Employees, is a specialized employment tax return used by agricultural employers to report wages and taxes for farmworkers. It ensures that federal income tax withholding, Social Security, and Medicare taxes are properly recorded yearly. If you paid qualifying wages to agricultural employees in 2020 and did not file this return, you may now face penalties, interest, or other IRS enforcement actions.

The IRS requires employers to file this form if their farmworker wages meet certain thresholds. These tests are designed to determine whether a farm operation has a filing obligation for employment tax returns.

Filing requirements for Form 943 include the following:

• The $150 test: You must file if you paid at least $150 in cash wages to any single agricultural employee during the year. This includes wages subject to Social Security or Medicare taxes.
  
  
• The $2,500 test: If the total wages paid to all agricultural employees, including cash and non-cash payments, reach $2,500 or more in the tax year, you must file. This ensures larger farming operations are subject to federal tax reporting.

Form 943 is also distinct from Form 941, which is filed quarterly by non-agricultural employers. Agricultural employers do not mix farmworkers and non-farmworkers on the same return. Instead, they use Form 943 exclusively for agricultural wages and continue filing each year until a final return is submitted to the IRS.

Visit the IRS page on Form 943 for more details on the form's purpose, instructions, and downloadable copies. Understanding these filing requirements is the first step in resolving an unfiled 2020 return and ensuring compliance.

Who Must File Form 943 and Key Deadlines

Agricultural employers are required to file Form 943 if they meet specific wage thresholds during the tax year. These thresholds ensure employers paying farmworkers substantial wages correctly report Social Security, Medicare taxes, and federal income tax withholding. The IRS uses these requirements to determine whether an employer must submit employment tax returns.

You must file Form 943 if any of the following apply:

• You paid at least $150 in cash wages to one agricultural employee during the year.
  
  
• You paid a combined total of $2,500 or more in cash and non-cash wages to all agricultural employees during the year.

Meeting either of these tests creates a filing requirement, even if you did not owe taxes in prior years. Once you file your first Form 943, you must continue filing every year until you submit a final return, which notifies the IRS that you no longer employ agricultural workers.

Key filing deadlines for the 2020 tax year:

Original Due Date

• Deadline: January 31, 2021
• Notes: Applies to filing the 2020 return.

Extended Due Date

• Deadline: February 10, 2021
• Notes: Extension is available only if all federal tax deposits were made on time and in full.

Ongoing Filing Obligation

• Frequency: Annual
• Notes: Employers must continue filing each year until a final return is submitted.

Missing these deadlines can result in a late filing penalty, interest charges, and possible enforcement actions from the IRS. Understanding these requirements and dates is crucial for agricultural employers with a past due 2020 return.

Step-by-Step Guide to Filing an Unfiled 2020 Form 943

Filing an unfiled 2020 Form 943 may feel overwhelming, but breaking the process into steps makes it more manageable. Agricultural employers must gather accurate records, complete each line of the form carefully, and submit it using the correct method. These actions reduce the risk of errors, additional penalties, or future enforcement actions.

Gathering Required Documentation

Before starting, ensure you have all the necessary records from the 2020 tax year. Accurate documentation is critical for calculating your tax liability correctly.

You will need:

• Payroll records for all agricultural employees, including cash and non-cash wages
  
  
• Employee W-4 forms and Social Security numbers
  
  
• Records of federal tax deposits made in 2020
  
  
• Documentation for H-2A visa workers, if applicable
  
  
• Proof of any sick or family leave wages paid under federal programs must be provided

Having this information ready ensures you can complete the return without delays.

Completing Form 943 (Line-by-Line Overview)

Once your records are gathered, you can begin completing the 2020 Form 943. The IRS provides line-by-line instructions, but this overview highlights the key sections.

1. Line 1 – Number of Agricultural Employees: Report the number of agricultural employees during the pay period, including March 12, 2020. Do not include household workers or anyone not receiving wages.
   
   
2. Lines 2–8 – Wages and Taxes: Enter wages subject to Social Security and Medicare taxes, the corresponding taxes owed, and the amount of federal income tax withheld.
   
   
3. Lines 9–16 – Tax Calculations: Calculate total taxes before adjustments, apply any corrections, and determine whether you have a balance due or an overpayment.
   
   
4. Line 17–Monthly Liability Schedule: Provide a breakdown of when wages and taxes were incurred during the year. This helps the IRS verify deposits against actual liability.

Completing each line carefully reduces the chance of miscalculation or tax assessment errors.

How to Access and File the Form

You can obtain the 2020 version of Form 943 directly from the IRS. The agency maintains prior-year forms on its website, including the 2020 Form 943 PDF. Using the correct year’s form is essential because tax rates and requirements may change from one year to the next.

Filing methods include:

• Download and print: Complete the form manually and mail it to the IRS address listed in the instructions.
  
  
• Request by mail or phone: Call 800-TAX-FORM (800-829-3676) to request a copy.
  
  
• Electronic filing: Submit the form through authorized IRS e-file providers for faster processing and confirmation of receipt.

No matter which method you choose, ensure the information matches your wage and income transcripts. Submitting a complete and accurate return helps resolve your past due account and brings your business closer to good standing with the IRS. This structured approach—gathering records, completing the return line by line, and submitting it through the correct channel—provides agricultural employers a clear path to filing an unfiled 2020 Form 943.

IRS Penalties and Interest for Late Filing

The IRS may impose penalties and interest charges when a 2020 Form 943 remains unfiled. These penalties are designed to encourage the timely filing and payment of employment tax returns. Agricultural employers with past-due returns should understand how each penalty works and the financial impact of leaving a return unresolved.

Failure to File Penalties

The most common penalty applies when a return is not filed by the due date. The IRS charges 5% of the unpaid tax for each month or part of a month in which the return is late, up to a maximum of 25%. If the return is more than 60 days late, the minimum penalty is $485 (for 2020) or 100% of the unpaid tax, whichever is smaller.

Example: If you owed $10,000 in taxes for 2020 and filed six months late, the penalty would reach $2,500, the 25% maximum.

Failure to Pay Penalties

If you file the return but do not pay the full tax bill, the IRS applies a penalty for failure to pay. This penalty accrues at 0.5% of the unpaid balance each month, with a maximum of 25%. If both the failure to file and failure to pay penalties apply for the same month, the failure to file penalty is reduced by the failure to pay penalty, lowering the combined charge.

Failure to Deposit Penalties

Agricultural employers must deposit withheld federal income tax, Social Security, and Medicare taxes by specific deadlines. Missing these deposit deadlines triggers additional penalties:

• If the deposit is made 1 to 5 calendar days late, the penalty is 2% of the unpaid amount.
  
  
• If the deposit is made 6 to 15 calendar days late, the penalty increases to 5%.
  
  
• If the deposit is made more than 15 calendar days late, the penalty rises to 10%.
  
  
• If the deposit is made only after the IRS issues a notice or demand, the penalty reaches 15%.

Interest Charges

The IRS adds interest to any unpaid tax liability. In addition to penalties, interest compounds daily and applies not only to the original tax balance but also to the penalties. The interest rate changes quarterly, as it is based on the federal short-term rate plus three percentage points.

Understanding how these penalties and interest grow over time underscores why agricultural employers should file an unfiled 2020 Form 943 as quickly as possible. Even if the tax bill cannot be paid in full, submitting the return stops the failure-to-file penalty from increasing further and shows good faith to the IRS.

The Trust Fund Recovery Penalty (TFRP)

The Trust Fund Recovery Penalty, often called the TFRP, is one of the most serious enforcement actions the IRS can use against employers who fail to handle employment tax returns correctly. When agricultural employers withhold federal income tax, Social Security, and Medicare taxes from wages, those funds are considered “trust fund taxes.” The IRS views them as money held in trust for employees, and failure to remit these amounts can result in severe consequences.

The TFRP is a penalty equal to 100% of the unpaid trust fund taxes. This means that every dollar withheld for federal income tax and the employee’s share of Social Security and Medicare taxes must either be paid to the IRS or assessed as a penalty against responsible individuals. The penalty is not dischargeable in bankruptcy and remains collectible until satisfied. The TFRP can significantly increase the tax liability owed to agricultural employers with past due returns.

Who Can Be Held Personally Liable

The IRS does not limit the TFRP to the business itself. Instead, it can assess the penalty against individuals who had the authority and responsibility to ensure that withheld taxes were paid but willfully failed to do so. These “responsible persons” may include:

• Business owners and partners control financial decisions
  
  
• Corporate officers, directors, or shareholders with signature authority
  
  
• Bookkeepers, payroll managers, or others responsible for handling deposits are involved
  
  
• Any person with the ability to direct how the business pays its bills

To apply the TFRP, the IRS must prove that the individual had control over the payment of taxes and acted willfully in failing to pay. Willfulness does not require malicious intent; it can simply mean paying other expenses, such as suppliers or financial institutions, before paying trust fund taxes.

IRS Resolution Options for Employment Tax Debts

Unfiled tax returns and unpaid balances from Form 943 strain agricultural employers financially. When businesses fail to file their return or provide necessary tax documents, the IRS may assess taxes, add penalties, and pursue taxpayers through collection actions. Fortunately, several programs exist to help non-filers and those with overdue accounts restore compliance.

Payment Plans and Installment Agreements

Employers unable to pay in full may qualify for installment agreements. These plans allow payments over time and protect against immediate collection.

• Short-term plans apply when balances can be paid within 180 days. They have no setup fee and help employers stay current with future federal tax return requirements.
  
  
• Long-term agreements extend payments beyond 180 days. Setup fees apply, but reduced rates and direct debit options can lower costs and simplify payment information reporting.
  
  
• Streamlined agreements are available for operating businesses with $25,000 or less in debt, or $50,000 for out-of-business sole proprietors. Repayment must be completed within 72 months or before the statute expires.

Penalty Relief and Abatement

Penalties often represent a large share of tax debt. Two main programs provide relief:

• First Time Abate (FTA) removes specific penalties if the employer has filed all required tax documents and has a clean three-year compliance history.
  
  
• Reasonable Cause Relief applies when circumstances such as illness, disaster, or record loss prevent timely filing or payment.

Voluntary Disclosure and Other Relief

Employers with missing tax returns may qualify for voluntary disclosure programs. These programs encourage most taxpayers to correct income information issues before enforcement begins. While they do not erase taxes or interest, they may reduce penalties and limit tax disputes in tax court.

Offer in Compromise (OIC)

An Offer in Compromise allows the IRS to settle a tax debt for less than the full amount owed. Approval is rare and requires thorough financial disclosure.

The IRS considers OIC applications under three categories:

• Doubt as to Collectibility: The situation is favorable when assets and future income are less than the tax debt.
  
  
• Doubt as to Liability: There is a legitimate dispute about the amount or existence of the debt.
  
  
• Effective Tax Administration: The collection may be reconsidered if it would cause economic hardship or be unfair due to exceptional circumstances.

Before applying for an OIC, employers must be current on all required returns, and businesses must be current on federal tax deposits.

Currently Not Collectible (CNC) Status

If an employer cannot pay taxes without losing the ability to cover basic expenses, the IRS may classify the account as Currently Not Collectible.

Key facts about CNC status:

• Collection activities, such as levies or garnishments, are temporarily suspended.
  
  
• The tax debt does not disappear, and interest and penalties continue to accrue.
  
  
• The IRS may file a federal tax lien to protect its interest in the debt.
  
  
• The taxpayer’s financial condition is periodically reviewed, and collection resumes if the situation improves.

Exploring these resolution options helps agricultural employers manage tax liabilities while complying. Filing past due returns, including the unfiled 2020 Form 943, is always the first step. Once filed, choosing the right resolution program can reduce penalties, prevent enforcement actions, and allow the business to move toward financial stability.

Case Studies: Realistic Scenarios for Agricultural Employers

Realistic examples show how agricultural employers can resolve unfiled and back tax returns while avoiding more serious consequences. These cases demonstrate how the IRS handles late filings and how compliance can be restored.

Case Study 1: Small Family Farm

A small farm failed to file its return for 2020 after the bookkeeper became ill. The IRS issued a notice, but the employer later submitted the missing form. Penalties were assessed, yet relief was granted after payroll records confirmed a valid reason for the delay. The farm also claimed credits for sick leave wages, lowering the balance. With professional assistance, the farm avoided enforcement and regained compliance.

Case Study 2: Mid-Size Grain Farm

A mid-size grain operation delayed deposits for withholding taxes and skipped filing tax returns for the prior year. After submitting the unfiled forms, the IRS added penalties and interest. The employer secured a payment plan and qualified for a one-time penalty abatement. A limited tax refund was issued after income transcripts were reviewed. The farm’s bank account was protected once hardship was documented.

Case Study 3: Large Agricultural Employer

A corporation with over 50 employees failed to file its return and missed deposit deadlines. The IRS website explains that late filings can lead to severe penalties. In this case, corporate officers were warned of potential personal liability if noncompliance continued. The employer filed all back returns, provided documentation for late filing, and verified through IRS e-services that future payments and claims were secure.

How Agricultural Employees Can Address a Past-Due Return and Avoid a Late Filing Penalty

If you have a past-due Form 943 for the previous year, the best step is to file your return quickly. When the IRS files a substitute return, it often excludes valuable deductions and tax credits, leaving you with a higher balance. Collect the payroll records, deposits, and withholding or estimated tax details, and ensure the submission of accurate forms, even if full payment cannot be made. The IRS generally allows payment plans, and while the IRS assesses penalties and interest, relief programs may reduce them. Staying current with future estimated taxes also helps prevent repeat issues.

Acting promptly shows good faith and reduces the risk of enforcement, which could include criminal prosecution in severe cases. Use the locked padlock icon in IRS e-services to confirm secure access to your account and payments. Agricultural employers can manage IRS notices, restore compliance, and protect their business with professional assistance.

Frequently Asked Questions (FAQs)

Can I still file a tax return for 2020 even if it is years late?

Yes, the IRS allows you to file a tax return for a past year even if it is long overdue. Filing promptly helps stop the late filing penalty from increasing. Submitting the return also shows compliance, which may reduce the risk of further IRS enforcement. Even without full payment, filing limits additional penalties and demonstrates good faith by resolving the issue.

How does filing Form 943 affect Social Security taxes for farmworkers?

Form 943 reports wages and the Social Security and Medicare taxes withheld from agricultural employees. Filing ensures workers’ earnings are correctly credited to their Social Security records. Unfiled returns can cause reporting gaps, affecting eligibility for future benefits. By filing, employers meet their federal obligations and protect workers’ long-term financial security tied to Social Security retirement and disability benefits.

Do I need to file returns if I am employed only as an H-2A visa worker?

Indeed, this is true in certain instances. Employers must file returns if they paid $600 or more to H-2A workers, even though these wages are not subject to Social Security and Medicare taxes. The IRS requires taxpayers to file a report for any federal income tax withholding. Employers should carefully review the rules for H-2A wages and ensure compliance to avoid penalties or questions about unfiled employment tax returns.

What is the deadline for paying federal tax after filing Form 943?

The deadline for paying federal tax reported on Form 943 is generally January 31 of the following year. Employers who make all required deposits on time receive their payments by February 10. If payment is not made, penalties and interest apply. Agricultural employers should meet filing and payment deadlines to remain in good standing and avoid IRS collection activity related to past-due balances.

What if I am self-employed and also employ farmworkers?

If you are self-employed and hire agricultural employees, you may need to file personal income tax returns and Form 943. Your self-employment income is separate from wages paid to workers, but both create federal obligations. Make sure to keep detailed records of farm income and payroll. Filing all required returns accurately helps prevent IRS enforcement actions and keeps your business compliant.