(1) If a taxpayer required to file a tax return under Sections 891.26 to 891.42 fails to make and file the return within the time prescribed, including any extension of time granted by the Tax Commissioner, the Tax Commissioner may impose a penalty not exceeding twenty-five dollars ($25.00) per month or fraction of a month, for each month or fraction of a month elapsing between the due date including extensions of the due date, and the date on which the return is filed. The aggregated penalty, per instance under this section shall not exceed one hundred fifty dollars ($150.00);
A. For each of the first two failures, five percent of the amount required to be reported on the return;
B. For the third and any subsequent failure, ten percent of the amount required to be reported on the return.
(3) If a taxpayer that has made the election allowed under Section 891.26 fails to timely pay an amount of tax required to be paid under this chapter, the Tax Commissioner may impose a penalty equal to fifteen percent of the amount not timely paid.
(4) If a taxpayer files what purports to be a tax return required by Sections 891.26 to 891.42 that does not contain information upon which the substantial correctness of the return may be judged or contains information that on its face indicates that the return is substantially incorrect, and the filing of the return in that manner is due to a position that is frivolous or a desire that is apparent from the return to delay or impede the administration of Sections 891.26 to 891.42 a penalty of up to five hundred dollars ($500.00) may be imposed.
(5) If a taxpayer makes a fraudulent attempt to evade the reporting or payment of the tax required to be shown on any return required under Sections 891.26 to 891.42, a penalty may be imposed not exceeding the greater of one thousand dollars ($1,000) or 100 percent of the tax required to be shown on the return.
(6) If any person makes a false or fraudulent claim for a refund under Section 891.38, a penalty may be imposed to exceeding the greater of one thousand dollars ($1,000) or 100 percent of the claim. Any penalty imposed under this section, any refund issued on the claim, and interest on any refund from the date of the refund may be assessed under Section 891.37 without regard to any time limitations for the assessment imposed by division (a) of that section.
(b) For purposes of this section, the tax required to be shown on a tax return shall be reduced by the amount of any part of the tax paid on or before the date including an extensions of the date, prescribed for filing the return.
(c) Each penalty imposed under this section shall be in addition to any other penalty imposed under this chapter. All or part of any penalty imposed under this section may be abated by the Tax Commissioner. The Tax Commissioner may adopt rules governing the imposition and abatement of such penalties.
(d) All amounts collected under this section shall be considered as taxes collected under Sections 891.26 to 891.42 and shall be credited and distributed to municipal corporations in the same proportion as the underlying tax liability as is required to be disturbed to such municipal corporations under Section 891.28.
(Ord. 19-17. Passed 9-3-19.)