(a) Unpaid taxes. 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, in addition to the amount of the unpaid tax or withholdings, at the rate of one and one- half percent (1 1/2%) per month or fraction thereof.
In addition to the interest penalty, all late withholding payments, withholding annual reconciliations and end of year returns will be assessed a $25.00 late filing fee if filed six or more business days after the due date . After the first offense, the progressive penalties listed in subsection (d) will apply.
(b) Failure to Pay Taxes. In addition to interest as provided in subsection (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:
(Ord. 1553-04. Passed 10-14-04.)
(1) For failure to pay taxes due, other than taxes withheld, fifty dollars ($50.00) or one and one-half percent (1½%) per month, or fraction thereof, of the amount of the unpaid tax, whichever is greater; and
(2) For failure to withhold and remit to the Director, taxes withheld from employees, one hundred dollars ($100.00) or one and one-half percent (1½
(3) For failure to file withholding annual reconciliation, one hundred dollars ($100.00). The Director shall give a sixty (60) day notice before assessing this penalty. After the first offense, the progressive penalties listed in subsection (d) will apply.
(c) Failure to Electronically File. For failure to file electronically pursuant to 181.06
(g), fifty dollars ($50.00) for every W-2 over two hundred fifty (250). After the first offense, the progressive penalties listed in subsection (d) will apply.
(d) Progressive Penalties. Any person who repeatedly violates the same section in this chapter will have the following progressive penalties applied to the penalty, not the interest, as follows:
(1) First offense – amount set out in the section;
(2) Second offense – double the amount of the first offense;
(3) Third offense – double the amount of the second offense;
(4) Fourth offense – double the amount of the third offense;
(5) Five or more offenses – double the amount of the last offense amount.
(Ord. 1553-04. Passed 10-14-04.)
(e) Exceptions. A penalty shall not be assessed on an additional tax assessment made by the Director when a return has been filed in good faith and the tax paid thereon within the time prescribed by the Director 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.
(f) Abatement. Upon an appeal from the refusal of the Director to recommend abatement of penalty and interest, the Board of Review may abate such penalty or interest, or both.
(Ord. 776-86. Passed 1-8-87; Ord. 1553-04. Passed 10-14-04.)