Legal Definitions - delinquent tax

A delinquent tax refers to any tax that has not been paid by its official due date. Once the payment deadline passes, the unpaid tax transitions from being merely "due" to being "delinquent." This status typically triggers additional charges, such as penalties and interest, and can lead to various collection actions by the government agency owed the tax.

Here are some examples illustrating delinquent tax:

• Example 1: Unpaid Property Tax
  Imagine a homeowner who receives their annual property tax bill, which has a payment deadline of December 31st. If they forget to pay the bill, or intentionally choose not to, by January 1st of the following year, the entire amount owed becomes a delinquent tax. The local county or municipality will then typically add late fees and interest to the original amount, and may eventually place a lien on the property.

• Example 2: Missed Income Tax Payment
  Consider an individual who files their annual income tax return but realizes they owe an additional sum to the federal government. If they fail to send in that payment by the April 15th deadline, that unpaid amount immediately becomes a delinquent tax. The Internal Revenue Service (IRS) will then begin to assess penalties for failure to pay and charge interest on the outstanding balance until it is fully settled.

• Example 3: Overdue Business Sales Tax
  A small retail business collects sales tax from its customers throughout the month. The state requires these collected sales taxes to be remitted by the 20th of the following month. If the business owner fails to send in the collected sales tax by this deadline, the unremitted amount becomes a delinquent tax. The state's department of revenue will then pursue the business for the overdue funds, along with any applicable penalties and interest for the late payment.