Is there a penalty for failing to file taxes on time?

Yes, there is a penalty for failing to file taxes on time in the District of Columbia. If you do not file your taxes by the due date, which is typically April 15th, you may incur a late filing penalty. This penalty is typically 5% of the unpaid tax per month, up to a maximum of 25% of the unpaid tax. Additionally, interest on the unpaid tax amount may also be charged until the tax liability is paid in full. It is important to note that these penalties and interest charges can accumulate quickly, so it is crucial to file your taxes on time to avoid unnecessary financial burdens.