The following penalties apply to Iowa sales, use, withholding, 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.
This summary is based on Rule 421.27.