What are the penalties for late payment or filing of state taxes in Colorado?

The penalties for late payment or filing of state taxes in Colorado vary depending on the specific situation. If you fail to pay your taxes on time, you may be subject to a penalty of 2% to 5% of the tax due, depending on the number of days late. Additionally, interest will accrue on the unpaid tax at a rate determined annually. If you don't file your return on time, there is a late filing penalty of $25 for individuals and $50 for corporations, which can increase over time. However, if you file your return on time but fail to pay the full amount owed, you will only be subject to the late payment penalty and interest. It is important to note that penalties and interest can accumulate rapidly, so it's best to promptly file and pay your taxes to avoid any additional financial burden.