Interest & Penalties

A taxpayer will be assessed interest and/or penalties for the delinquent filing of income tax returns and for the late payment of taxes due. The following is the listing of these charges:

Interest:

One and one-half percent (1-1/2%) interest is assessed per month (or fraction of a month) for all unpaid taxes, and for all unpaid withholding (or required to be withheld) taxes.

Penalties:

• A penalty of two dollars ($2.00) per day, not to exceed fifty dollars ($50.00) per year; or one and one-half percent (1-1/2%) per month (or fraction of a month); whichever is greater, is assessed for failure to pay taxes due.
  
  
• A penalty of two dollars ($2.00) per day, not to exceed fifty dollars ($50.00) per period; or three percent (3%) per month (or fraction thereof a month); whichever is greater, is assessed for failure to remit taxes withheld from employees (withholding tax).
  
  
• A penalty of two dollars ($2.00) per day, not to exceed fifty dollars ($50.00) per year, is assessed for failure to file a required return, even if no tax is due. The penalty is assessed per year, for every year the return has not been filed, until a return is filed.
  
  
• A penalty of two dollars ($2.00) per day, not to exceed fifty dollars ($50.00) per year, is assessed for failure to file a required declaration (estimate) of estimated, taxable income.
  
  

Interest and penalties will not be imposed on an additional tax assessment made by the Income Tax Department if the return and the tax were paid timely, filed in good faith, and with absence of fraud. In addition, penalty and interest will not be imposed on an additional tax assessment resulting from a federal audit if the amended return is filed and the additional tax is paid within three (3) months after the federal audit.