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Do I owe interest and penalties for my tax due Iowa?

Article ID: 59634 Email Print
Question
Do I owe interest and penalties for my tax due Iowa?

Answer

Penalty 

10% Penalty for Failure to Timely File a Return:
If you do not file your return by the due date and at least 90% of the correct tax is not paid, you owe an additional 10% of the unpaid tax.

5% Penalty for Failure to Timely Pay the Tax Due:
If you file your return on time but do not pay at least 90% of the correct tax due, you owe an additional 5% of the unpaid tax.

You will never be subject to both penalties. The penalty will be the applicable 5% or 10%, but not 15%.

Interest

The interest rate may change yearly.  Interest must be added to delinquent tax at 0.5% per month rate, beginning on the due date of the return and accruing each month until you make full payment of all tax, penalty, and interest due. 


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Article Details
Views: 523 Created on: Jun 15, 2013
Date updated: Dec 17, 2018
Posted in: States, Iowa

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