If a return is filed late without payment of the tax shown due, both the failure to file and failure to pay penalties will be assessed at the same time. If the return is filed under an extension, the failure to file penalty applies from the extended filing date rather than from the original due date. The failure to pay penalty applies from the original due date of the return. The failure to pay penalty is assessed when the tax paid by the original due date of the return is less than 90 percent of the total amount of tax due. If the 90 percent rule is met, any remaining balance due, including interest, must be paid with the income tax return on or before the expiration of the extension period to avoid the failure to pay penalty.
Interest is due from the original due date to the date paid.
When the federal accuracy penalty has been assessed for federal income tax purposes under Section 6662 of the Internal Revenue Code, the 10 percent negligence penalty will be assessed for state income tax purposes unless the 25 percent negligence penalty applies. June 1, 1993. When an audit is based upon a federal audit report and the fraud penalty has been assessed for federal purposes, the 50 percent fraud penalty will be assessed for State purposes. January 1, 1999. June 1, 1993.