Loading...
The Tax Penalty Amnesty program shall be conducted during the period of October 1, 2020, through December 17, 2020. The program shall apply to penalties for delinquent tax liabilities for tax periods ending on or before December 17, 2020, with respect to Article I (Business Taxes, including taxes imposed with respect to cannabis pursuant to Los Angeles Municipal Code Section 21.51), Article 1.1 (Telephone, Electricity, and Gas Users Taxes), Article 1.3 (Commercial Tenant’s Occupancy Taxes), Article 1.7 (Transient Occupancy Tax), and Article 1.15 (Parking Occupancy Taxes) of this Chapter.
For any taxpayer who meets the requirements of Section 21.12.5 of this article:
(a) The tax penalties imposed under Article I (Business Tax, including taxes imposed with respect to cannabis pursuant to Los Angeles Municipal Code section 21.51), Article 1.1 (Telephone, Electricity, and Gas Users Taxes), Article 1.3 (Commercial Tenant’s Occupancy Taxes), Article 1.7 (Transient Occupancy Taxes), and Article 1.15 (Parking Occupancy Taxes) of this Chapter shall not apply to any taxes for the tax periods for which Tax Penalty Amnesty is requested. The Tax Penalty Amnesty shall not apply to any tax or tax period which the taxpayer did not clearly identify in the application for Tax Penalty Amnesty.
(b) No criminal action based upon the non-reporting or under-reporting of tax liabilities or the nonpayment of any taxes shall be brought against the taxpayer for any tax period for which the taxpayer has complied with the provisions of Section 21.12.5 of this article.
The Tax Penalty Amnesty shall not apply and no refund or credit shall be granted of any penalty if, prior to the time the taxpayer makes a request for tax penalty amnesty pursuant to Section 21.12.5 of this article, the penalty has been paid by the taxpayer. The Tax Penalty Amnesty shall apply to tax penalties being challenged administratively or through litigation provided the tax penalty has not been paid at the time of the application and the tax otherwise qualifies under this article, provided the Tax Penalty Amnesty does not result in a refund or credit.
(a) The provisions of this article shall apply to any taxpayer who, on or after October 1, 2020, and on or before December 17, 2020, files an application for tax penalty amnesty and complies with the following conditions:
1. Substantially complies with the application procedure created and administered by the Director of Finance;
2. Pays in full all taxes and interest due before December 17, 2020, relating to the application submitted to the Office of Finance; and
3. Pays all costs and fees incurred with respect to the collection of any delinquent taxes at the time the application is submitted to the Office of Finance.
(b) For any taxes subject to amnesty under this program, the Director of Finance may enter into an installment payment agreement, as provided for in Section 21.18 of Article I of this Chapter, in lieu of the complete payment required under Subdivision 2. of Subsection (a) of this section. Failure of the taxpayer to fully comply with the terms of the installment payment agreement shall render the waiver of any penalty applicable thereto null and void, unless the Director of Finance determines that the failure was due to reasonable cause and the taxpayer substantially complied with the terms of the installment agreement. An installment agreement under this article shall have a maximum term of six months, by which date all taxes, interests, fees, and costs must be fully paid, unless the taxpayer has already entered into an installment agreement with the Office of Finance, in which case the Director may use the Director’s discretion to alter any existing installment agreement to reflect the intent of the Tax Penalty Amnesty Ordinance of 2020.
If, subsequent to December 17, 2020, the Director of Finance issues a billing, deficiency determination or assessment for a tax period for which Tax Penalty Amnesty was granted, penalties shall not be imposed with respect to the amounts paid to satisfy the requirements for the Tax Penalty Amnesty Program. This section shall not invalidate any waiver granted under Section 21.12.3 of this article.
The Director of Finance shall adequately publicize the tax penalty amnesty program, issue forms and instructions, and take other actions needed to implement this article. The Director of Finance shall have the discretion to create the application for the Tax Penalty Amnesty of 2020. The Office of Finance shall have the discretion to determine whether a taxpayer has substantially complied with the requirements of the Tax Penalty Amnesty of 2020. No later than May 31, 2021, the Director of Finance shall report to Council the number of taxpayers for whom penalties were waived and the total amount of penalties waived pursuant to this article.
Loading...