1. Extension based late tax payment penalty:
A: 2% per month. Maximum penalty 12% of Taxes due.
B. Avoid this penalty if you pay up to 90% of the final Virginia Taxes owed by May 1 of the Tax Year.2. Late Filing Penalty:
Applies if no tax return is eFiled after the six month extension period: 6% per month from Nov. 1 until the return is filed or the maximum penalty of 30% has accrued.3. Late Payment Penalty:
Applies if you filed your return by the due date of Nov. 1, but did not pay all or part of your taxes due: 6% per month, with a maximum penalty of 30%.
Contact the Virginia Dep. of Taxation to apply for a Waiver of Penalty.
For Penalty amounts over $2,000 you can request and file Offer in Compromise.4. IRS Penalties:
Calculate and Estimate your potential IRS Income Tax Return Penalties