(a) All taxes, including estimated taxes, imposed and all moneys 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 one percent (1%) per month or fraction thereof.
(b) The following penalties are hereby imposed:
(1) For failure to file timely a final return with tax owing, twenty five dollars ($25.00); for failure to file timely a final return with no tax owing within two months of the due date of the final return, fifteen dollars ($15.00); and
(2) For failure to pay tax due, including declaration and payment of estimated tax, when due, other than taxes withheld, fifteen percent (15%) of unpaid tax due.
(c) A penalty 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 the time prescribed by the Commissioner; 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, provided that an amended return is filed and the additional tax is paid within three months after final determination of the Federal tax liability.
(d) In addition to the situations described in subsection (c) hereof, "upon the recommendation of the City Budget & Finance Director and approval of the City Manager," the Commissioner may abate the interest and penalties otherwise imposed by this section in the following instances:
(1) When the taxpayer has exercised ordinary prudence in the selection of a competent and reputable tax preparer, but such preparer has been negligent in preparing or filing the tax return;
(2) When the taxpayer has relied upon the written advice of a competent and reputable tax preparer, which advice is wrong;
(3) When the taxpayer has relied upon the written or oral advice of the Commissioner or an employee of the Commissioner and such advice is wrong;
(4) If the taxpayer is physically or mentally ill to such an extent as to render such taxpayer incapable of competently signing and participating in the preparation of the taxpayer's return; or
(5) If the taxpayer is separated from the taxpayer's spouse and has relied upon the spouse to file a return in cases where such spouse has filed returns previously on behalf of the taxpayer.
(e) In addition to interest as provided in subsection (a) hereof, a penalty based on the unpaid tax is hereby imposed for failure to pay taxes withheld from employees: ten percent (10%) per month or fraction thereof, up to a maximum penalty equal to the total unpaid taxes and owing.
Any person required to withhold the tax who knowingly fails to withhold such tax or pay over such tax or knowingly attempts in any manner to evade or defeat such tax or the payment thereof shall, in addition to other penalties provided by law, be liable to a penalty equal to the total amount of the tax evaded, or not withheld, or not paid over. No other penalty under this section shall be applied to any offense to which this penalty is applied.
(f) Interest but no penalty will be assessed where an extension has been granted by the Commissioner and the final tax paid within the period as extended.
(g) In every situation described in this section the burden of proof shall rest on the taxpayer who may appeal the decision of the Commissioner to the Board of Review.
(Ord. 2014-49. Passed 6-18-14.)