What is the penalty for late or unpaid taxes?

The penalty for late or unpaid taxes in Massachusetts is generally 1% per month of the amount due, up to a maximum of 25% of the total tax liability. Additionally, interest is also charged on the outstanding balance at a rate of 6% per year, compounded daily. Late-payment penalties may be increased to 2% per month for taxpayers who have previously been issued a demand for payment by the Department of Revenue or have failed to file a return in the past. It is important to promptly address any tax obligations to avoid incurring these penalties and accruing interest. Please consult the Massachusetts Department of Revenue's website or contact their office for specific details on penalties and payment options.