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The penalty for late payment of franchise tax in Texas can be significant. If you do not settle your tax by the due date, the TX Comptroller 05-391 outlines that you may incur a 5% penalty for the first month of lateness, with additional penalties applying for continued delays. Furthermore, interest accrues on your unpaid tax, which can add to your financial burden over time. Therefore, it's crucial to stay informed about your tax obligations to avoid unnecessary penalties.
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