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In general, interest and penalties will be charged if you do not pay all amounts due on or before May 15, 2005. If the return is for a fiscal year, then interest and penalties will be charged if you do not pay on or before the 15th day of the fifth month after the close of the taxable year. Important: The granting of an extension does not relieve one of their obligation to pay all tax amounts due by the due date.
Interest Interest is due on all tax amounts that are not timely paid. Interest is charged at the rate of 15 percent per year from the date due until the date paid. Late Payment Penalty If you fail to fully pay the tax due by the due date (May 15, 2005) a late payment penalty will be assessed. The granting of an extension does not relieve one of their obligation to pay all tax amounts due by the due date. A penalty of 0.5 percent of the tax not paid by the due date will accrue for each 30 days during which the failure to pay continues. This penalty cannot exceed 25 percent of the tax due. Important note: The sum of BOTH the delinquent and late payment penalties cannot exceed 25 percent (.25) of the tax due. The 30-day increments used for the calculation of the delinquent and late payment penalties are based on the date the department receives the return and/or payment, not the date the envelope is postmarked. Underpayment Penalty An underpayment penalty may be charged if your tax deficiency is greater than $1,000 and your filing status is either single, married filing separately, or head of household. If your filing status is married filing joint, or qualifying widow(er) you might incur an underpayment penalty if your tax deficiency is greater than $2,000. OnLine Taxes will determine if an underpayment penalty is due, and to compute the underpayment penalty, if any by the answers you provide. A Form R-210 will be provided with your form if it is needed.
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