I think JimOhio is offering sage advice if there is a possibility of error. And 10K isn't chump change.
To answer you more directly, generally speaking: penalties and late fees aren't too much of an issue. I have gotten hit for $10 here or there by the State on my employees payroll. I just paid the penalties and I am forgiven and it's business as usual (half the Congressmen and women have probably paid IRS penalties so my chances of a political career are actually enhanced
)
Fines are another story.
Fines are usually substantial.
I am not sure if we are dealing with a fine here.