If Barr fails to make a timely deposit of FICA taxes and is five days late, what penalty does Barr face?

When a taxpayer fails to make a timely deposit of FICA taxes, the penalties are structured based on the number of days the deposit is late. For a delay of one to five days, the penalty is 2% of the unpaid taxes. Therefore, if Barr is five days late in making the deposit, he would face a penalty of 2% on the amount of the undeposited FICA taxes.

This graduated penalty structure is designed to encourage timely compliance while still recognizing that minor delays will incur lesser penalties compared to more significant delays. Understanding this penalty framework is crucial for ensuring that obligations related to FICA taxes are met on time to avoid unnecessary penalties.