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Last Updated: 1/15/2013

I Was Assessed Penalty and Interest

The Minnesota Department of Revenue may assess penalties and interest if your Sales and Use Tax returns or payments are late. To avoid this, it’s important to review your account to ensure you’re filing and paying your tax correctly and on time.

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

​If you:

​We will assess:

​The rate or amount will be:

do not pay your tax by the due date for the reporting period​ ​a Late Payment penalty ​5%  of the unpaid tax if payment is 1 to 30 days late; 10% if payment is 31 to 60 days late; 15% if payment is more than 60 days late
do not file your return by the due date for the reporting period​ ​a Late Filing penalty ​5% of any unpaid tax

​are required to make electronic payments but paid by check *

​a Payment Method penalty ​5% of any payments that were not made electronically
​fail to make or underpay your “June accelerated payment” ​an Accelerated Payment penalty ​10% of the entire amount if no payment is made by the due date; for underpayments, 10% of the amount you were short as of the due date
​file or pay your tax late for multiple reporting periods ​a Repeat penalty ​25% of the unpaid tax for each consecutive period that you file a late return or make a late payment
​do not file a tax return within 30 days after we sent a written demand for filing the return ​an Extended Delinquency penalty ​5% of any unpaid tax when the “demand to file” is sent or $100, whichever amount is greater
​are assessed additional tax and it’s found you were negligent or disregarded tax laws or rules  ​a penalty for Negligent or Intentional Disregard of the Law ​10% of any additional unpaid tax 
​do not pay your tax by the due date for the filing period ​Interest (rate is determined yearly) ​for 2012, 3% of the unpaid tax and penalty from the return due date until the tax is paid
 
* You must pay Sales and Use Tax electronically if:
  • you’re required to pay any other business tax electronically; or
  • you had Sales and Use Tax liability of $10,000 or more during the state’s previous fiscal year (July 1 – June 30). For more information, see the 2010 Sales Tax Newsletter.