Applicable to Tax Years Beginning on or after January 1, 2016
A penalty may be imposed on unpaid income tax, including unpaid estimated income tax, equal to 15% of the amount not timely paid. The penalty for unpaid employer withholding tax is 10% for the first month or fraction thereof, plus an additional 3% for each month late thereafter, not to exceed 50%.
Late Filing Penalty
For tax years ending on or before December 31, 2022, a late filing penalty may be imposed at the rate of $25 per month (or fraction of a month) that a return remains unfiled. This late filing penalty applies regardless of the liability on the return. The late filing penalty shall not exceed $150 for each failure to timely file.
For tax years ending on or after January 1, 2023, a late filing penalty may be imposed not to exceed $25 regardless of the tax liability on the return.
Interest shall be imposed on all unpaid income tax, unpaid estimated income tax, and unpaid employer withholding tax. The interest rate to be applied to each calendar year is the federal short-term rate, rounded to the nearest whole number percent, plus 5%. The rates are as follows: