E-file mandate penalties

New penalties imposed upon preparer's clients* for non-compliance 

  • 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 will apply.
  • Any overpayment claimed on a paper tax document that was required to be filed electronically will not be eligible to receive interest until it's filed electronically.
  • These penalties don’t apply to individual income taxpayers.

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 applies to a first-time charge.  $1,000 penalty applies to each subsequent charge.

Client penalties*

Amount

Failure to e-file

$50 penalty per tax document

Failure to e-pay

$50 penalty per payment

In addition:

  • A paper document is subject to the penalty imposed for that tax type for failure to file a return or report.
  • Any overpayment claimed on a paper tax document that was required to be electronically filed will not be eligible to receive interest until the document is filed electronically.  

*None of these penalties apply to individual income taxpayers.

For More Information 

Summary of filing options and payment methods
Mandate Changes for 2012
Who the tax preparer e-file mandate applies to
What tax documents must be electronically filed
More tax preparer e-file mandate information

Last Modified: April 02, 2012