Insurance Taxes FAQs

Calculate penalties and interest as follows (see example below):

• Late filing penalty = 5 percent of unpaid tax
• Late payment penalty = 5 percent of unpaid tax (if 1 to 30 days late); 10 percent (if 31 to 60 days late); or 15 percent (if over 60 days late)
• Interest = (tax + penalty) × interest rate × # days late ÷ 365

• Late filing penalty = $1,000 × 0.05 = $50
• Late payment penalty = $1,000 × 0.10 = $100

• Interest = ($1,000 + 50 + 100) × 0.03 × 37 ÷ 365 = $3.50