The late payment penalty is based on the amount of tax owed and the number of days that the tax is not paid. The maximum amount of the penalty is unlimited.

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The late payment penalty does indeed depend on the amount of tax owed and how long it remains unpaid, but there is typically a maximum cap on the penalty, which prevents it from being unlimited. This cap varies by jurisdiction and specific tax laws.

The Late Payment Penalty Is Based on the Amount of Tax