(A) (1) Paying and filing late. All taxes imposed under the provisions of this chapter remaining unpaid after they become due shall bear interest and penalty, and all taxpayers filing a return late shall incur a penalty, at the same rates for the period of such late payment and late filing as the rates then being charged by the United States Department of Treasury, Internal Revenue Service for late payment of taxes and late filing of returns.
(2) Should a taxpayer, upon the late filing of any tax return, be found to owe no taxes, or owes minimal taxes generating penalty and interest of less than $25, such taxpayer shall nevertheless be required to pay a fine of $25 upon a first violation, $50 upon a second violation, and $100 upon a third violation and any subsequent violation.
(B) Underpayment of estimated tax.
(1) In addition to interest, a penalty is imposed on underpaid estimated tax when the total of estimated tax payments made on time by the end of the taxable year is as follows:
(a) Less than 90% of the tax shown on the tax return for that year; or
(b) Less than 100% of the tax for the prior year, whichever is less.
(2) Interest is charged on late payment of estimated tax and on total estimated tax which is as follows:
(a) Less than 90% of the tax shown on the tax return for that year; or
(b) Less than 100% of the tax for the prior year, whichever is less.
(3) The penalty rate and the interest rate shall be the same rates for the period of such underpayment as the rates then being charged by the United States Department of Treasury, Internal Revenue Service.
(4) For failure to remit taxes withheld from employees when due, a penalty shall be imposed of 3% per month or a fraction thereof.
(C) Exceptions. A penalty shall not be assessed on an additional tax assessment made by the administrator when a return has been filed in good faith and the tax paid thereon within the time prescribed by the administrator; and provided further that in the absence of fraud, neither penalty nor interest shall be assessed on any additional tax assessment resulting from a federal audit, providing an amended return is filed and the additional tax is paid within three months after a final determination of the federal tax liability.
(D) Abatement of penalty, interest, or both. Upon recommendation of the administrator and approval by the Village Manager, or upon appeal from the refusal of the administrator to so recommend, the Board of Review may abate penalty or interest or both.
('69 Code, § 97.10) (Ord. C-320, passed 10-20-70; Am. Ord. C-625, passed 11-9-87; Am. Ord. 2009-19, passed 11-9-09)