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74. PENALTY AND INTEREST. Enter the penalty on line 74a, the interest on line 74b and the total on line 74.
74a. 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.
74b. INTEREST.
Interest must be added to delinquent tax. Interest is added at a rate of 0.6% per month beginning on the due date of the return (April 30) and accrues each month until paid in full. Part of a month constitutes a whole month, so if you pay the tax on June 3, you are late for May and June for a total interest rate of 1.2% (2 x 0.6%).