1. Extension based late tax payment penalty: A: The penalty on unpaid taxes is 2% per month with a maximum penalty of 12% of taxes due.
B. Avoid this penalty if you pay up to 90% of the final Virginia taxes owed by May 1 of the tax year.
2. Late Filing Penalty: This applies if no tax return is filed after the six month extension period: 6% per month from Nov. 1 until the return is filed or the maximum penalty of 30% has accrued.
3. Late Payment Penalty: This applies if you filed your return by the due date of Nov. 1, but did not pay all or part of your taxes due: 6% per month, with a maximum penalty of 30%.
Contact the Virginia Department of Taxation to
apply for a waiver of penalty. For penalty amounts over $2,000, you can
request and file Offer in Compromise.
4. IRS Penalties: Calculate and estimate your
potential IRS income tax return penalties.