Penalties - Sales, Use, Withholding, Fuel, and Income Taxes

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.


Fuel Tax Only

In addition to the penalties described above, the following two penalties also apply to fuel tax:

Willful Failure to File a Return

The penalty for willful failure to file a return is 75% of the tax due.

Penalty Exception Provisions

Penalties can be waived only under special circumstances. See Penalty Exception Provisions.

This summary is based on Rule 421.27.