Interest accrued on FUTA tax if employer failed to pay by January 31

Interest accrued on FUTA tax underpayments when the employer failed to pay the balance due by January 31. FUTA taxes computed for the calendar year, but not yet deposited per Code Sec. 6157 and Reg. §31.6011(a)-3, must be made by January 31 of the year following the year for which the payment is due. When an employer failed to make required payments within the tax year, the Code Sec. 6601(i) exception applied and no interest was due on the underpayment if the taxpayer paid the total due by January 31 as required by Form 940. However, if the employer failed to pay the total due by January 31, then the Code Sec. 6601(i) did not apply and interest accrued under Code Sec. 6601(a). (Chief Counsel Advice Memorandum 201518014.)

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