Individual Income

Interest and Penalty Charges

Failure to file a return:

• Penalty at 5% per month on tax liability outstanding, up to a maximum of 25%

• Penalty at $50 minimum penalty if filed more than 60 days after the due date, even if no tax due

Failure to pay by original due date:

• Interest at established rate assessed monthly on tax due from original due date to payment date

• Penalty 2% per month of outstanding tax due, up to a maximum assessment of 25% of outstanding tax due

Failure to make estimated tax payments:

Applies to returns with $500 or more tax due at filing
Charges based on tax divided by four with subtraction of 1/4 of withholding or other credits

• Interest at established rate assessed monthly from the estimated payment due dates to date of payment

• Penalty of 1% per month, up to a maximum of 25% of underpayment amount

Underpayment Calculator

Failure to make sufficient estimated payments:

Applies to returns with tax due at filing
Charges based on tax divided by four with subtraction of 1/4 of withholding, estimated payments or other credits

• Interest at established rate assessed monthly from the estimated payment due dates to date of payment

• Penalty of 1% per month, up to a maximum of 25% of underpayment amount

Negligent failure to pay:

• Interest at established rate assessed monthly on tax due from original due date to payment date

• Penalty 2% per month of outstanding tax due, up to a maximum assessment of 25% of outstanding tax due

• 25% penalty of tax underpayment

Fraudulent failure to Pay:

• Penalty 100% of tax liability