Internal Revenue Service
Revenue Ruling
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smRev. Rul. 54-45
1954-1 C.B. 224
IRS Headnote
Procedure relating to the assertion of penalty with respect to income tax withholding returns.
Full Text
Rev. Rul. 54-45
1. The purpose of this Revenue Ruling is to prescribe the policy of the Internal Revenue Service in asserting penalty in connection with the return and payment of income withholding tax when the return is filed on or before the 10th day of the second month following the period for which it is made, accompanied by depositary receipts and a check in full payment of the tax due.
2. Section 406.605 of Regulations 120, which specifies the due date for the return and payment of income tax withheld on wages, provides that if, and only if, the return is accompanied by depositary receipts, Form 450, showing timely deposits, in full payment of the taxes due for the entire calendar quarter, the return may be filed on or before the 10th day of the second month following the period for which it is made. Otherwise the due date for filing the return is the last day of the month following the close of the calendar quarter for which the return is made.
3. It has been brought to the attention of the Service that last minute changes sometimes occasion minor adjustments in the tax due from the time the deposit of the full amount of the tax as determined is made on or before the 30th day of the month following the end of a calendar quarter and the time the return may be timely filed on or before the 10th day of the second month following the period for which it is made.
4. Therefore, if an employer, after the 30th day of the month following the calendar quarter for which his return of income withholding tax is made, ascertains a slight error in his computation of the amount of tax due and when filing his return on or before the 10th day of the second month following such quarter accompanies the return and depositary receipts with a check covering the minor adjustment, no penalty for delinquent filing will be asserted.