(1) Applicable late filing penalties are calculated at 5 percent of the net tax due for each month during which there is a failure to file the return or report. Late filing penalties shall:

(a) not exceed an amount up to 25 percent of the net tax due; and

(b) not be less than $50.

(2) Net tax due includes the amount of any credit against the tax that may be claimed on the return or report and any payments received by the due date of the return or report, including extensions.

(3) If the due date of the return or report is a date other than the last day of a calendar month, the late filing penalty is assessed each month or fraction thereof for which there is a failure to file a tax return or report. For example:

(a) A taxpayer files a tax return on June 20 that was due on April 15 of the same year. When filing the return, the taxpayer pays the tax due of $1,500. The late filing penalty assessed is $225 ($1,500 x 5 percent x 3 months).

(b) A taxpayer files a tax return on June 20 that was due on April 15 of the same year. When filing the return, the taxpayer pays the tax due of $300. The late filing penalty assessed is $50 because the calculated penalty does not exceed the $50 minimum ($300 x 5 percent x 3 months = $45).

(c) A taxpayer files a tax return due on June 20 that was due on April 15 of the same year. The taxpayer, however, paid the tax due of $1,500 on April 15. The late filing penalty assessed is the minimum $50.

(4) If the due date of the return or report, including extensions, is the last day of a calendar month, the late filing penalty is assessed each succeeding month or fraction thereof for which there is a failure to file a tax return or report. For example:

(a) A taxpayer files a tax return on April 10 that was due on March 31 of the same year. When filing the return, the taxpayer pays the tax due of $1,500. The late filing penalty assessed is $75 ($1,500 x 5 percent x 1 month).

(b) A taxpayer files a tax return on April 10 that was due on March 31 of the same year. The taxpayer, however, paid the tax due of $1,500 on March 31. The late filing penalty assessed is the minimum $50.