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Last Updated: 12/9/2016

I was assessed penalty and interest

 

The Minnesota Department of Revenue may assess penalties and interest if your Withholding Tax returns, payments, or W-2s are late. It is important to review your account to ensure you’re filing returns, paying your tax, and submitting W-2s 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 (and interest as stated below)

​5% of the unpaid tax if payment is 1 to 30 days late;
10% if payment is 31 to 60 days late; or
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

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

do not provide W-2 or information returns to your payees;

do not provide W-2 or information returns to the Department of Revenue;​

do not submit W-2s or information returns electronically when required; or

provide false or fraudulent W-2s or information returns 

​a W-2 and Information Return penalty

$50 for each violation (per W-2 or information return) not to exceed $25,000 per year​

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​

​interest (rate is determined yearly)

​A 4% rate on the unpaid tax from the date payment was due until paid, and on penalties from the date assessable until paid

* You must pay Withholding Tax electronically if:

  • you withheld a total of $10,000 or more in Minnesota income tax during the previous fiscal year (July 1 – June 30); or
  • you are required to pay any other business tax electronically; or
  • you use a payroll service company.
Once you’re required to pay business taxes electronically for one year, you must continue to do so for all future years. For more information, see Electronic Payment Requirements for Businesses.