(a) All taxes imposed and all monies 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-half of one percent (i.e. ½%) per month or fraction thereof.
(b) In addition to interest as provided in subsection (a) hereof, penalties based on the unpaid tax are hereby imposed as follows:
(1) For failure to pay taxes due, other than taxes withheld: one and one-half percent (1 ½%) per month or fraction thereof.
(2) For failure to remit taxes withheld from employees: five percent (5%) per month or fraction thereof.
(c) In the case of taxpayers who fail to file tax returns when due as required by this chapter, the following late filing charge will apply:
Late Charge | When Complete Tax Return is Filed |
$25.00 | Not more than thirty days late |
50.00 | More than thirty but not more than ninety days late |
100.00 | More than ninety days late. |
(d) Effective for tax years 2005 and later, for failure to provide Forms 1099 as required in Section 181.06(c)(2), there shall be assessed a late filing charge of ten dollars ($10.00) effective on the first day of the month following the due date and increased by ten dollars ($10.00) on the first day of each month thereafter that the violation continues to a maximum of fifty dollars ($50.00).
(e) Exceptions: A penalty shall not be assessed on an additional tax assessment made by the Tax Department when a return has been filed in good faith and the tax paid thereon within the time prescribed by the Tax Department; 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 additional tax is paid within three months after the final determination of the federal tax liability.
(f) The Tax Department is hereby given the authority to abate any of the penalties and late charges imposed by this section upon formal request of the taxpayer. Such abatement is authorized whether in full or in part. The Tax Department may promulgate reasonable rules and regulations governing the abatement of penalties and late fees.
(Ord. 2005-23. Passed 2-6-06.)