What penalties are there for late filing?

The Nebraska Department of Revenue imposes specific penalties for late filing of tax returns. It is essential for taxpayers to understand these penalties in order to avoid unexpected financial consequences. When a taxpayer fails to file their tax return by the due date, they may face a penalty of five percent of the tax due for each month the return is late, up to a maximum of twenty-five percent. This penalty applies to both individual and business tax returns. In addition to the filing penalty, the department also assesses interest on any unpaid tax. The interest accrues from the original due date until the tax is paid in full. The rate is determined annually by the department and is subject to change. It is advisable for taxpayers to stay informed about their filing deadlines and to file returns as soon as possible, even if they cannot pay the full amount owed. The Nebraska Department of Revenue offers various resources and tools on its website which may assist taxpayers in understanding their obligations and managing their accounts effectively. For more specific guidance or up-to-date information on penalties, individuals may find visiting the official website useful.