What are the penalties for late payment of taxes?

The penalties for late payment of taxes in Indiana vary depending on the circumstances. Generally, if you fail to pay your taxes in full by the due date, you may be subject to a penalty of 10% of the unpaid amount. Additionally, interest is charged on the unpaid balance at a yearly rate of 3% above the prime rate. However, if you have filed your return on time and paid at least 90% of the tax owed, you may be eligible for a penalty abatement. It's important to note that penalties and interest continue to accrue until the outstanding balance is paid in full. To avoid these penalties, it is crucial to file your taxes on time or request an extension if needed, and make the payment as soon as possible.