Penalty and Interest FAQ - Partnership Tax
1. How is penalty and interest calculated?
You will owe penalty and interest for late payment of tax if you pay after the due date.
Penalty accrues monthly at 1 percent of the tax due, and increases by an additional 1 percent per month, or fraction thereof (e.g. penalty on a $500 tax due will be $30 if the tax is unpaid for six months).
The interest rate is 1 percent above the adjusted prime rate and is adjusted on January 1 and July 1 of each year. Interest is charged from the original due date of the return to the date the balance of the tax is paid. View current interest rate.