What are the penalties for late payment of taxes?

The Indiana Department of Revenue imposes several penalties for late payment of taxes. Generally, if a taxpayer does not pay their owed taxes by the due date, they may face a late payment penalty amounting to ten percent of the unpaid tax. In addition to this penalty, interest will also accrue on the unpaid balance until the amount is paid in full. The interest rate is determined annually and can change, so it is vital for taxpayers to check the current rate on the Indiana Department of Revenue's website. Furthermore, if a taxpayer does not file their tax return by the due date, they may incur an additional penalty for late filing, which could be a specific percentage of the tax owed. It is important to note that these penalties and interest do accumulate over time, potentially leading to substantial amounts owed. Taxpayers should take proactive steps to settle their tax obligations promptly to minimize penalties. For the most accurate and updated information regarding penalties or other tax-related inquiries, visiting the Indiana Department of Revenue's current web page is advisable.