Penalties and Interest
If you do not file your return or make your payment on time, we may charge you the following penalties and interest:
• Late Filing Penalty.
When you file a return after the original or extended due date, we will assess a penalty of 5% per month (or part of a month) up to a maximum of 25% on the outstanding tax balance. You may also be charged a $100 penalty for each month the return is late.
• Late Payment Penalty.
When you pay after the filing deadline, you may be charged a 5% penalty on the outstanding balance.
We will assess interest at an annual rate of 3% above the prime rate each month (or part of a month) the tax is unpaid. At the end of each calendar year, any tax, penalties, and interest remaining unpaid will become part of the balance on which interest is charged. See Technical Bulletin TB-21(R) for current and previous years’ interest rates.