(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 percent (1%) per month or fraction thereof.
(b) In addition to interest as provided in subsection (a) hereof, the following penalties based on the unpaid tax are hereby imposed for failure to pay taxes when due or to remit taxes withheld from employees when due:
If paid within the following period of The penalty, calculated as a percentage time from due date (months) of the amount of taxes due is (%) Less than 1 5 More than 1 but less than 2 10 More than 2 but less than 3 15 More than 3 but less than 4 20 More than 4 but less than 5 25 |
(c) In addition to the interest and penalties provided in subsections (a) and (b) hereof, the following penalties based on the unpaid tax are hereby imposed:
(1) For failure to file a final return, five percent (5%) for each month or fraction thereof, subject to a maximum penalty of twenty-five percent (25%); provided, however, that a minimum penalty of fifteen dollars ($15.00) shall be imposed for any return which is filed later than forty-six days after the due date thereof; and
(2) (EDITOR’S NOTE: Former subsection (c)(2) was repealed by Ordinance 2010-30.)
(d) A penalty shall not be assessed on an additional tax assessment made by the Administrator when a return has been filed in good faith and the tax paid thereon within the time prescribed by the Administrator; 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, provided that an amended return is filed and the additional tax is paid within three (3) months after final determination of the Federal tax liability.
(e) In addition to the situations described in subsection (d) hereof, the Administrator shall abate the interest and penalties otherwise imposed by this section in the following instances:
(1) When the taxpayer has exercised ordinary prudence in the selection of a competent and reputable tax preparer, but such preparer has been negligent in preparing or filing the tax return;
(2) When the taxpayer has relied upon the written advice of a competent and reputable tax preparer which advice is wrong;
(3) When the taxpayer has relied upon the written or oral advice of the Administrator or an employee of the Administrator and such advice is wrong;
(4) If the taxpayer is physically or mentally ill to such an extent as to render such taxpayer incapable of competently signing and participating in the preparation of the taxpayer’s return; or
(5) If the taxpayer is separated from the taxpayer’s spouse and has relied upon the spouse to file a return in cases where such spouse has filed returns previously on behalf on the taxpayer.
(f) In addition to interest as provided in subsection (a) hereof, a penalty based on the
unpaid tax is hereby imposed for failure to pay taxes withheld from employees: ten percent (10%) per month or fraction thereof. Any person required to withhold the tax who knowingly fails to withhold such tax or pay over such tax or knowingly attempts in any manner to evade or defeat such tax or the payment thereof shall, in addition to other penalties provided by law, be liable to a penalty equal to the total amount of the tax evaded, or not withheld, or not paid over. No other penalty under this section shall be applied to any offense to which, this penalty is applied.
(g) Interest but no penalty will be assessed where an extension has been granted by the Administrator and the final tax paid within the period as extended.
(h) In every situation described in this section the burden of proof shall rest on the taxpayer who may appeal the decision of the Administrator to the Board of Review.
(Ord. 1455. Passed 12-9-97.)