The penalty for filing late is 5% of the total tax
assessed that was not paid when due. It is charged
each month or part of a month the return is late, for
up to 5 months.
The penalty for paying late is initially ½% of the
unpaid tax shown on the return. It is charged each
month or part of a month following the payment due
date until the tax is paid. The penalty increases to 1%
of the unpaid tax for any tax that is not paid within
10 days after we issue a notice of intent to levy.
However, the total penalty cannot exceed 25%.
When both penalties are charged for the same
month, we reduce the penalty for filing late by the
penalty for paying late for that month.
