Penalties

The penalty for failure to file an estate or trust return by the due date is 5 percent of the tax per month with a maximum of 25 percent of the net tax due. Net tax due is the amount of tax required to be shown on the return less any timely payments of the tax and allowable credits. The penalty for failure to pay the tax by the due date is 10 percent of the tax.

The penalty for failure to pay the tax by the due date is 10 percent of the tax.

Other penalties for fraud, negligence, and criminal penalties for willful failure to comply with the income tax laws are similar to those applicable to individuals.