What are the penalties for late tax payments in Tennessee?

In Tennessee, penalties for late tax payments can vary depending on the type of tax involved. Generally, taxpayers in Tennessee may incur a penalty for not paying taxes by the due date, which is typically five percent of the unpaid tax amount for each month or part of a month that the tax is late, with a maximum penalty cap of twenty-five percent. It is important to note that this penalty applies to the amount of tax owed and not any interest that may also accrue. Additionally, interest on late payments is charged at a rate established by the Tennessee Department of Revenue. This interest continues to accrue until the tax liability is paid in full. It is crucial for taxpayers to be aware that these penalties and interest can quickly add up, making it essential to file and pay taxes on time. For specific situations or further details regarding deadlines and the types of taxes affected, it might be beneficial to consult the current web page of the Tennessee Department of Revenue for the most accurate and comprehensive information.