PENALTIES AND INTERESTS ARE IMPOSED IF YOU DON'T FILE!!
Penalty and Interest
Penalties and interest can be determined by using the Penalty and Interest calculator found on our website: P & I Calculator
A. Penalty applied for failure to file return by the due date: 5% of tax due per month, or part of a month, not to exceed 25%.
B. Failure to timely pay tax due: ½% per month (or portion of month) up to maximum of 25%.
C. Failure to timely deposit: up to $1,000.
Interest is charged on a return which has a balance due and which has not been paid in full by the due date. State law says that if any tax is not paid when due, interest is due on the unpaid portion from the time the tax was due until it is paid in its entirety.
The law also says that interest on underpayments and overpayments is established by DOR in the same manner, and at the same time, as the underpayment rate provided in Internal Revenue Code Sections 6621 and 6622. This means that interest rates may change or can change quarterly.