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E-file mandate penalties

Penalties for failure to comply with the e-file mandate 

  • If you don't file and pay electronically when required to do so, the department may impose penalties on both you and your clients.
  • If you file a paper document that you were required to file electronically, your client may be subject to the failure to file a return or report penalty for that tax type.
  • Any overpayment claimed on a paper tax document that was required to be filed electronically won't be eligible to receive interest until it's filed electronically.
  • These penalties can’t be imposed upon individual income tax clients or individual income tax self-filers.

Tax professional penalties

Amount

Failure to e-file a tax document

$50 penalty for each document, unless you can document reasonable cause

Charging a separate e-file fee

$500 penalty for first-time charge. $1,000 penalty applies per each subsequent charge.

Client penalties*

Amount

Failure to e-file

$50 penalty per tax document

Failure to e-pay

$50 penalty per payment

*These penalties can't be imposed upon individual income tax clients or individual income tax self-filers.

More Information 

Summary of mandated tax documents and payment methods
Who the tax preparer e-file mandate applies to
What tax documents must be electronically filed

Updated: January 08, 2014