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The usual penalty is the amount owed plus 5% of the underpayment amount. Its capped at 25%. Underpaid taxes accrue interest at a rate that the IRS sets quarterly.
Rob Woods | Arizona Department of Revenue.
This penalty is . 5 percent of the tax unpaid for each month, or fraction of a month the tax remains unpaid. Individuals who fail to make a required estimated tax payment, underpayment of the correct amount or late payment will be charged an underpayment of estimated tax penalty.
Keep in mind that ADOR will never: Use text messages or any social media to discuss personal tax issues. Call to demand immediate payment; nor will we call about taxes owed without first having mailed an official demand notice.
The penalty for failing to file, filing late (including extensions), or filing an incomplete information return is $100 for each month, or fraction of a month, that the failure continues, up to a maximum penalty of $500. The department charges interest on any portion of the tax not paid by the due date.
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Nonresidents are subject to Arizona tax on any income earned from Arizona sources. Nonresidents may also exclude income Arizona law does not tax. Individuals subject to tax by both Arizona and another state on the same income may also be eligible for a tax credit.
Partnerships and S Corporations making the PTE election that do not pay their tax liability by EFT may be subject to a penalty of 5% of the amount of the payment not made by EFT.
When are my estimated payments due? For the most part, you must make your payments in four equal installments. If you are a calendar year filer, the payments are due on April 15th, June 15th, and September 15th of the current year and on January 15th of the next year.

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