(a) Interest. All taxes imposed and moneys withheld or required to be withheld by employers under the provisions of this chapter, remaining unpaid after they become due, shall bear interest at the rate of 1/2% per month.
(b) Penalties. In addition to interest as provided in division (a) hereof, penalties for failure to pay taxes and to withhold and remit taxes pursuant to the provisions of this chapter are hereby imposed as follows.
(1) In the case of taxpayers failing to pay the full amount of tax due, a penalty of the higher of: (a) $20; or (b) 1% per month, of the amount of the unpaid tax, if the tax is paid during the first six months after the tax became due; a penalty of 2% per month of the unpaid tax, if the tax is paid between the seventh and twelfth months after the tax became due; and a penalty of 4% per month of the amount of the unpaid tax, if the tax is paid later than 12 months after it became due. The percentages herein specified, when used, shall apply from the first month of delinquency.
(2) In the case of employers who fail to withhold and remit to the Tax Commissioner the taxes to be withheld from employees, a penalty of the higher of: (a) $50; or (b) 2% per month of the unpaid withholding, if paid during the first three months after it was due; a penalty of 4% per month of the unpaid withholding, if paid during the fourth to sixth month, inclusive, after it was due; and a penalty of 5% per month of the unpaid withholding, if paid later than six months after it was due.
(c) Exceptions. A penalty shall not be assessed or an additional tax assessment made by the Tax Commissioner when a return has been filed in good faith and the tax paid thereon within the time prescribed by the Tax 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, providing an amended return is filed and the additional tax is paid within three months after final determination of the federal tax liability.
(d) Abatement by Board of Review. Upon an appeal from the refusal of the Tax Commissioner to recommend abatement of penalty and/or interest, the Board of Review may abate the penalty or interest, or both.
(Ord. 2004-154, passed 12-13-2004)