What are the penalties for late tax filing or payment?

The penalties for late tax filing or payment in New Mexico vary depending on the circumstances. For late tax filing, individuals and businesses may face a penalty of 20% of the tax due. Additionally, interest will be charged on the unpaid balance. Late payment penalties are 1.25% per month or fraction of a month, up to a maximum of 20% of the unpaid taxes. If the taxpayer fails to file a return or pay the tax, a combination of penalties may apply. In some cases, penalties can be waived if reasonable cause is shown. It is important to file taxes and pay on time to avoid additional charges. For more detailed and specific information, it is recommended to consult the official guidelines provided by the New Mexico Taxation and Revenue Department.