(1) If a taxpayer required to file a tax return under Sections 194.80 to 194.95 of the Codified Ordinances fails to make and file the return within the time prescribed, including any extensions of time granted by the tax commissioner, the commissioner may impose a penalty not exceeding twenty-five dollars per month or fraction of a month, for each month or fraction of a month elapsing between the due date, including extensions of the due date, and the date on which the return is filed. The aggregate penalty, per instance, under this division shall not exceed one hundred fifty dollars.
(a) For each of the first two failures, five per cent of the amount required to be reported on the return;
(b) For the third and any subsequent failure, ten per cent of the amount required to be reported on the return;
(3) If a taxpayer that has made the election allowed under Section 194.80 of the Code of Ordinances fails to timely pay an amount of tax required to be paid under this chapter, the commissioner may impose a penalty equal to fifteen per cent of the amount not timely paid.
(4) If a taxpayer files what purports to be a tax return required by Sections 194.80 to 194.95 of the Code of Ordinances that does not contain information upon which the substantial correctness of the return may be judged or contains information that on its face indicates that the return is substantially incorrect, and the filing of the return in that manner is due to a position that is frivolous or a desire that is apparent from the return to delay or impede the administration of Sections 194.80 to 194.95 of the Code of Ordinances, a penalty of up to five hundred dollars may be imposed.
(5) If a taxpayer makes a fraudulent attempt to evade the reporting or payment of the tax required to be shown on any return required under Sections 194.80 to 194.95 of the Code of Ordinances, a penalty may be imposed not exceeding the greater of one thousand dollars or one hundred per cent of the tax required to be shown on the return.
(6) If any person makes a false or fraudulent claim for a refund under Section 194.91 of the Code of Ordinances, a penalty may be imposed not exceeding the greater of one thousand dollars or one hundred per cent of the claim. Any penalty imposed under this division, any refund issued on the claim, and interest on any refund from the date of the refund, may be assessed under Section 194.90 of the Code of Ordinances without regard to any time limitation for the assessment imposed by division (A) of that section.
(B) For purposes of this section, the tax required to be shown on a tax return shall be reduced by the amount of any part of the tax paid on or before that date, including any extensions of the date, prescribed for filing the return.
(C) Each penalty imposed under this section shall be in addition to any other penalty imposed under this section. All or part of any penalty imposed under this section may be abated by the tax commissioner. The commissioner may adopt rules governing the imposition and abatement of such penalties.
(D) All amounts collected under this section shall be considered as taxes collected under Sections 194.80 and 194.95 of the Code of Ordinances and shall be credited and distributed to municipal corporations in the same proportion as the underlying tax liability is required to be distributed to such municipal corporations under Section 194.83 of the Code of Ordinances.
(Ord. 2018-05. Passed 2-20-18.)