What are some of the penalties for Personal Income Tax evasion?
The Department imposes a penalty if a taxpayer does not file his/her return on or before the due date, or the approved extended due date. The penalty is 5 percent of the unpaid tax due for each month or fraction of a month. The maximum penalty is 25 percent. The minimum penalty is $5. If a taxpayer does not pay the full amount of the tax due with his/her return, the Department imposes a 5 percent underpayment penalty. If a taxpayer does not pay the tax due on or before the due date, the Department also imposes interest from the due date to the date of payment at the annual interest rate that the U.S. Secretary of the Treasury establishes as of January 1 of each calendar year. Visit the Departments e-Services Center to use the penalty and interest calculator. The Department imposes a $500 penalty on a taxpayer who files a frivolous return. A frivolous return is one that: • Does not contain sufficient information for the Department to determine the correct liability; or • Contains inform
