(A) (1) All taxes imposed and monies withheld or required to be withheld by employers under the provisions of this chapter and remaining unpaid after they become due shall bear interest at the rate of 12% per annum.
(2) In addition to interest as provided in division (A)(1), penalties based on the unpaid tax are hereby imposed as follows: the taxpayer upon whom the taxes are imposed and any employer required by this chapter to deduct, withhold, and pay taxes imposed by this chapter shall be liable in addition hereto to a penalty of 5% of the amount of the unpaid tax for each month after the tax becomes due up to a maximum of 25%.
(3) All delinquent tax accounts outsourced by the Village to a law firm or collection agency shall be assessed a collection fee on the entire balance due equal to the contingency collection percentage charged by each law firm or collection agency as set forth in the collection contract with the village. The balance due prior to the assessment of the collection fee shall be the principal balance due plus interest, penalties, late fees, and/or other permissible fines, penalties and charges. The collection fee shall be assessed against all payments made by the taxpayer whether or not the balance due is paid in full with one payment, or over time with more than one payment. The assessment of the collection fee shall be made by the law firm or collection agency after the delinquent account has been outsourced for collection. Additionally, court costs shall be added to the balance due as they are incurred but shall not be assessed a collection fee.
(B) (1) Penalty and interest shall not be assessed on an additional tax assessment made by the Commissioner when a return has been filed in good faith and the tax paid thereon within 30 days 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 final determination of the federal tax liability.
(2) Upon recommendation of the Commissioner of Taxation, the Board of Review may abate a penalty or interest or both, or upon an appeal from the refusal of the Commissioner of Taxation to recommend abatement of penalty and interest, the Board of Review may nevertheless abate penalty or interest or both.
(C) Exceptions.
(1) No penalty shall be assessed on additional taxes found on audit to be due when a return was timely filed in good faith and the tax paid thereon within the prescribed time.
(2) In the absence of fraud, neither penalty nor interest shall be assessed on any additional taxes resulting from a federal audit for federal income tax purposes, provided an amended return is filed and the additional tax paid within three months after final determination of the federal tax liability.
(D) Appeal from assessment. Upon recommendation of the Commissioner, the Board of Review may abate penalty or interest, or both, or upon an appeal from the refusal of the Commissioner to recommend abatement of penalty and interest, the Board may nevertheless abate penalty or interest, or both.
(Ord. 670-77, passed 11-9-1977; Am. Ord. 1232-98, passed 11-24-1998; Am. Ord. 1338-01, passed 6-26-2001; Am. Ord. 1339-01, passed 6-26-2001; Am. Ord. 1428-04, passed 6-22-2004; Am. Ord. 1464-05, passed 12-13-2005; Am. Ord. 1482-01, passed 8-8-2006; Am. Ord. 1590-11, passed 12-13-2011; Am. Ord. 1690-15, passed 12-22-2015)