New Mexico Tax Department Announces Penalty, Interest Rates on Unpaid Individual Income Tax

The New Mexico Taxation and Revenue Department March 1 announced the penalty and interest rates on unpaid individual income tax. A penalty is calculated at 2 percent per month, or partial month, to a maximum of 20 percent on the unpaid principal due. The penalty applies when a taxpayer fails to file or pay because of negligence or disregard of the rules and regulations but without intent to defraud. Since January 2008, interest has been calculated daily at the rate set by the U.S. Internal Revenue Code. For the period of Jan. 1 to June 30, the effective annual interest ...