(a) Failure to File Return or Pay Tax Due.
(1) In the case of failure to make or file a required return of any tax administered under this article unless it is shown that such failure is due to reasonable cause and not due to willful neglect, there shall be added to the amount required to be shown as tax on such return five percent (5%) of the amount of such tax if the failure is for more than one month, with an additional five percent (5%) for each additional month or fraction thereof during which such failure continues, not exceeding twenty-five percent (25%) in the aggregate, provided, that this addition to tax shall be imposed only on the net amount of tax due;
(2) In the case of failure to pay the amount shown as tax on any required return of any tax administered under this article on or before the date prescribed for payment of such tax (determined with regard to any extension of time for payment), unless it is shown that such failure is due to reasonable cause and not due to willful neglect, there shall be added to the amount shown as tax on such return one-half of one percent (.5%) of the amount of such tax if the failure is for not more than one month, with an additional one half of one percent (.5%) for each additional month or fraction thereof during which such failure continues, not exceeding twenty-five percent (25%) in the aggregate; provided, however, that the addition to tax shall be imposed only on the net amount of tax due.
(b) Limitation and Special Rule. In computing additions to tax under this section, only one of the sections of subsection (a) shall be applicable to anyone taxable period.
If the correct amount of tax due is less than the amount shown on the return, subsections (1) and (2) of subsection (a) hereof shall apply only to the lower amount.
(c) Negligence or Intentional Disregard of Rules and Regulations. In the case of underpayment of any tax administered under this article which is due to negligence or intentional disregard of rules and regulations (but without intent to defraud), there shall be added to the amount of tax due five percent (5%) of the amount of such tax if the underpayment due to negligence or intentional disregard of rules and regulations is for more than one month, with an additional five percent (5%) for each additional month or fraction thereof during which such underpayment continues, not exceeding twenty-five percent (25%) in the aggregate; provided, that these additions to the tax shall be imposed only on the net amount of tax, due and shall be in lieu of the additions to tax provided for in subsection (a), and the Treasurer shall state in his notice of assessment the reason or reasons for imposing this addition to tax with sufficient particularity to put the taxpayer on notice regarding why it was assessed.
(d) False or Fraudulent Return. In the case of the filing of any false or fraudulent return with intent to evade any such tax, or in the case of willful failure to file a return with intent to evade tax, there shall be added to the tax due an amount equal to fifty percent (50%) thereof which shall be in lieu of the additions to tax provided for in subsections (a) and (c). The burden of proving fraud, willfulness or intent to evade tax shall be upon the City Treasurer.
(e) Additions to Tax Treated as Tax. Additions to tax prescribed under this section on any tax shall be assessed, collected and paid in the same manner as taxes.
(Ord. 0-19-87. Passed 4-9-87.)