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Last Updated: 12/29/2016

Penalty and Interest

​The Minnesota Department of Revenue may assess penalties and interest if you are late filling your annual Occupation Tax return or making a deposit.

The table below shows the penalties and interest we may assess, when they apply, and the rate for each type.

If you:

We will assess:

The rate or amount will be:

do  not pay your tax due by May 1​ a Late Payment penalty​ 6% of the unpaid tax for each 30-day period (full or partial) that your payment is late, up to 15%​
do not pay your tax by May 1​ a Balance Not Paid penalty​ 5% of the unpaid tax​
do not file your return by May 1​ a Late Filing penalty​ 5% of the unpaid tax​
do not file your annual return within 30 days an Extended Delinquency penalty​ 5% of any unpaid tax, in addition to any other late-filling penalties​
are required to make electronic payments but paid by check​​ a Payment Method penalty​ 5% of any payments that were not made electronically​
if you understate your tax by more than 10% or $10,000, whichever is more​ an Understate Tax penalty​ 20% of the understated/underpaid tax amount​
do not file, or file a false or incorrect return (but without the intent to defraud)​ a penalty of Negligent or Intentional Disregard of the law​ 10% of any additional unpaid tax​
do not file, or knowingly file a false or fraudulent return​ an Intentionally Not Filed penalty​ 50% of the total tax liability​
do not pay your tax by May 1​ Interest (rate is determined yearly)​ for 2016, 3% and 2017, 4% of the unpaid tax and penalty from the return due date until the tax is paid​