(a) Interest on Underpayments. If any amount of tax is not paid on or before the last date prescribed for payment (without regard to any extension of time granted for payment), interest on such amount at the rate of one and one-half percent (1.5%) per month, shall be paid for the period from such last date to the date of payment. In computing the amount of interest to be paid, such interest shall be compounded daily. Interest under this division shall not be paid if the amount thereof is less than one dollar ($1.00).
(b) (1) Failure to File Return.
A. In case of failure to file a return under this chapter on or before the prescribed date (determined with regard to any extension of time for filing), unless it is shown that such failure is due to reasonable cause and not due to willful neglect, there shall be added to the amount required to be shown as tax on such return five percent (5%) of the amount of such tax if the failure is for not more than one (1) month, with an additional five percent (5%) for each additional month or fraction thereof during which such failure continues, not exceeding twenty-five percent (25%) in the aggregate.
B. In the case of a failure to file a return of tax within sixty (60) days of the date prescribed for filing of such return (determined with regard to any extension of time for filing), unless it is shown that such failure is due to reasonable cause and not due to willful neglect, the addition to tax under division (b)(1)A. of this section shall not be less than the lesser of one hundred dollars ($100.00) or one hundred percent (100%) of the amount required to be shown as tax on such return.
C. For the purposes of this division (b)(1), the amount of tax required to be shown on the return shall be reduced by the amount of any part of the tax which is paid on or before the date prescribed for payment of the tax and by the amount of any credit against the tax which may be claimed upon the return.
(2) Failure to Pay Tax Shown on Return. In case of failure to pay the amount shown as tax on a return required to be filed under this chapter on or before the prescribed date (determined with regard to any extension of time for payment), unless it is shown that such failure is due to reasonable cause and not due to a willful neglect, there shall be added to the amount shown as tax on such return one-half of one percent (0.5%) of the amount of such tax if the failure is not for more than one (1) month, with an additional one-half of one percent (0.5%) for each additional month or fraction thereof during which such failure continues. For the purpose of computing the additions for any month the amount of tax shown on the return shall be reduced by the amount of any part of the tax which is paid on or before the beginning of such month and by the amount of any credit against the tax which may be claimed upon the return. If the amount of tax required to be shown on a return is less than the amount shown as tax on such return, this division (b)(2) shall be applied by substituting such lower amount.
(3) Failure to Pay Tax Required to Be Shown on Return. In case of failure to pay any amount in respect of any tax required to be shown on a return required to be filed under this chapter which is not so shown (including a determination made pursuant to Section 199.08 of this chapter) within ten (10) days of the date of a notice and demand therefor, unless it is shown that such failure is due to reasonable cause and not due to willful neglect, there shall be added to the amount of tax stated in such notice and demand one- half of one percent (0.5%) of such tax if the failure is not for more than one (1) month, with an additional one-half of one percent (0.5%) for each additional month or fraction thereof during which such failure continues. For the purpose of computing the addition for any month, the amount of tax stated in the notice and demand shall be reduced by the amount of any part of the tax which is paid before the beginning of such month.
(4) Limitations on Additions.
A. With respect to any return, the amount of the addition under division (b)(1) of this section shall be reduced by the amount of the addition under division (b)(2) of this section for any month to which an addition applies under both division (b)(1) and (b)(2). In any case described in division (b)(1)B. of this section, the amount of the addition under such division (b)(1) shall not be reduced below the amount provided in such division (b)(1)B.
B. With respect to any return, the maximum amount of the addition permitted under division (b)(3) of this section shall be reduced by the amount of the addition under division (b)(2) of this section (determined without regard to division (b)(1)B.) which is attributable to the tax for which the notice and demand is made and which is not paid within ten (10) days of such notice and demand.
(c) Underpayment Due to Negligence. If any part of an underpayment of tax is due to negligence or intentional disregard of this chapter or any rules or regulations hereunder (but without intent to defraud), there shall be added to the tax a penalty equal to five percent (5%) of the underpayment.
(d) Underpayment Due to Fraud. If any part of an underpayment of tax is due to fraud, there shall be added to the tax a penalty equal to fifty percent (50%) of the underpayment.
(e) The interest and penalties imposed by this section shall be paid and disposed of in the same manner as other revenues from this chapter. Unpaid interest and penalties may be enforced in the same manner as the tax imposed by this chapter.
(Ord. No. 518-91. Passed 6-17-91, eff. 6-20-91)