2006 New York Code - Interest And Penalties.

 
    §  11-2114 Interest and penalties. * (a) Interest on underpayments. If
  any amount of tax is not paid on or before the last date prescribed  for
  payment  (without  regard to any extension of time granted for payment),
  interest on such amount at the rate set by the commissioner  of  finance
  pursuant  to  subdivision (g) of this section, or, if no rate is set, at
  the rate of six percent per annum, shall be paid  for  the  period  from
  such  last  date  to  the  date  of  payment. In computing the amount of
  interest to be paid, such interest shall be compounded  daily.  Interest
  under  this  subdivision shall not be paid if the amount thereof is less
  than one dollar.
    * NB Amended Ch. 765/85 § 45, language juxtaposed per Ch. 907/85 § 14
    (b) * (1) Failure to file return. (A) In case of  failure  to  file  a
  return  under  this chapter on or before the prescribed date (determined
  with regard to any extension of time for filing),  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 of the amount of such tax if the failure is
  for not more than one month, with an additional five  percent  for  each
  additional   month   or  fraction  thereof  during  which  such  failure
  continues, not exceeding twenty-five percent in the aggregate.
    (B) In the case of a failure to file a return of tax within sixty days
  of the date prescribed for filing of such return (determined with regard
  to any extension of time for filing),  unless  it  is  shown  that  such
  failure  is  due to reasonable cause and not due to willful neglect, the
  addition to tax under subparagraph (A) of this paragraph  shall  not  be
  less  than  the  lesser of one hundred dollars or one hundred percent of
  the amount required to be shown as tax on such return. (C) For  purposes
  of  this paragraph, the amount of tax required to be shown on the return
  shall be reduced by the amount of any part of the tax which is  paid  on
  or  before  the date prescribed for payment of the tax and by the amount
  of any credit against the tax which may be claimed upon the return.
    * NB Amended Ch. 765/85 § 45, language juxtaposed per Ch. 907/85 § 14
    (2) Failure to pay tax shown on return. In case of failure to pay  the
  amount  shown as tax on a return required to be filed under this chapter
  on or  before  the  prescribed  date  (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
  of the amount of such tax if the failure is not for more than one month,
  with an additional one-half of one percent for each additional month  or
  fraction  thereof  during  which  such  failure continues, not exceeding
  twenty-five percent in the aggregate. For the purpose of  computing  the
  addition  for  any  month the amount of tax shown on the return shall be
  reduced by the amount of any part of the tax which is paid on or  before
  the  beginning of such month and by the amount of any credit against the
  tax which may be claimed upon the return. If the amount of tax  required
  to  be  shown  on  a return is less than the amount shown as tax on such
  return, this paragraph shall  be  applied  by  substituting  such  lower
  amount.
    (3)  Failure  to  pay  tax  required to be shown on return. In case of
  failure to pay any amount in respect of any tax required to be shown  on
  a  return  required to be filed under this chapter which is not so shown
  (including a determination made pursuant  to  section  11-2107  of  this
  chapter)  within  ten  days of the date of a notice and demand therefor,
  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 of tax stated
  in  such  notice  and  demand one-half of one percent of such tax if the
  failure is not for more than one month, with an additional  one-half  of


  one  percent  for each additional month or fraction thereof during which
  such  failure  continues,  not  exceeding  twenty-five  percent  in  the
  aggregate.  For the purpose of computing the addition for any month, the
  amount  of  tax  stated in the notice and demand shall be reduced by the
  amount of any part of the tax which is paid before the beginning of such
  month.
    * (4) Limitations on additions.
    (A) With respect to any return,  the  amount  of  the  addition  under
  paragraph  one of this subdivision shall be reduced by the amount of the
  addition under paragraph two of this subdivision for any month to  which
  an  addition  applies  under  both  paragraphs  one and two. In any case
  described in subparagraph (B) of paragraph one of this subdivision,  the
  amount  of  the  addition  under such paragraph one shall not be reduced
  below the amount provided in such subparagraph.
    (B) With respect to any return, the maximum  amount  of  the  addition
  permitted  under paragraph three of this subdivision shall be reduced by
  the amount of the addition  under  paragraph  one  of  this  subdivision
  (determined  without  regard  to subparagraph (B) of such paragraph one)
  which is attributable to the tax for which the notice and demand is made
  and which is not paid within ten days of such notice and demand.
    * NB Amended Ch. 765/85 § 45, language juxtaposed per Ch. 907/85 § 14
    * (c)  Underpayment  due  to  negligence.  (1)  If  any  part  of   an
  underpayment  of  tax  is  due to negligence or intentional disregard of
  this chapter or any rules or regulations hereunder (but  without  intent
  to  defraud),  there  shall  be added to the tax a penalty equal to five
  percent of the underpayment.
    (2) There shall be added  to  the  tax  (in  addition  to  the  amount
  determined  under  paragraph one of this subdivision) an amount equal to
  fifty percent of the interest payable  under  subdivision  (a)  of  this
  section  with  respect  to  the portion of the underpayment described in
  such  paragraph  one  which  is  attributable  to  the   negligence   or
  intentional  disregard referred to in such paragraph one, for the period
  beginning on the last  date  prescribed  by  law  for  payment  of  such
  underpayment  (determined without regard to any extension) and ending on
  the date of the assessment of the tax (or, if earlier, the date  of  the
  payment of the tax).
    * NB Amended Ch. 765/85 § 45, language juxtaposed per Ch. 907/85 § 14
    * (d) Underpayment due to fraud. (1) If any part of an underpayment of
  tax  is due to fraud, there shall be added to the tax a penalty equal to
  fifty percent of the underpayment.
    (2) There shall be added to  the  tax  (in  addition  to  the  penalty
  determined  under  paragraph one of this subdivision) an amount equal to
  fifty percent of the interest payable  under  subdivision  (a)  of  this
  section  with  respect  to  the portion of the underpayment described in
  such paragraph one which  is  attributable  to  fraud,  for  the  period
  beginning  on  the  last  day  prescribed  by  law  for  payment of such
  underpayment (determined without regard to any extension) and ending  on
  the  date  of the assessment of the tax (or, if earlier, the date of the
  payment of the tax.)
    (3) The penalty under this subdivision shall be in lieu of  any  other
  addition to tax imposed by subdivision (b) or (c) of this section.
    * NB Amended Ch. 765/85 § 45, language juxtaposed per Ch. 907/85 § 14
    (e)  Additional penalty. Any person who, with fraudulent intent, shall
  fail to pay any tax imposed by this chapter, or to make, render, sign or
  certify any return,  or  to  supply  any  information  within  the  time
  required  by or under this chapter, shall be liable for a penalty of not
  more than one  thousand  dollars,  in  addition  to  any  other  amounts
  required under this chapter to be imposed, assessed and collected by the


  commissioner  of  finance.  The  commissioner  of finance shall have the
  power, in his or her discretion, to  waive,  reduce  or  compromise  any
  penalty under this subdivision.
    (f)  The  interest and penalties imposed by this section shall be paid
  and disposed of in the same manner as other revenues from this  chapter.
  Unpaid  interest and penalties may be enforced in the same manner as the
  tax imposed by this chapter.
    (g)(1) Authority to set interest rates. The  commissioner  of  finance
  shall set the rate of interest to be paid pursuant to subdivision (a) of
  this section, but if no such rate of interest is set, such rate shall be
  deemed  to  be set at six percent per annum. Such rate shall be the rate
  prescribed in paragraph two of this subdivision but shall  not  be  less
  than  six  percent  per  annum. Any such rate set by the commissioner of
  finance shall apply to taxes, or any portion thereof,  which  remain  or
  become due on or after the date on which such rate becomes effective and
  shall  apply  only  with  respect to interest computed or computable for
  periods or portions of periods occurring in the  period  in  which  such
  rate is in effect.
    (2)  General  rule.  The  rate  of interest set under this subdivision
  shall be the sum of (i) the federal short-term rate  as  provided  under
  paragraph three of this subdivision, plus (ii) five percentage points.
    (3) Federal short-term rate. For purposes of this subdivision:
    (A)  The  federal  short-term  rate for any month shall be the federal
  short-term rate  determined  by  the  United  States  secretary  of  the
  treasury  during such month in accordance with subsection (d) of section
  twelve hundred seventy-four of the internal  revenue  code  for  use  in
  connection  with  section  six  thousand  six  hundred twenty-one of the
  internal revenue code. Any such rate shall be  rounded  to  the  nearest
  full  percent  (or,  if a multiple of one-half of one percent, such rate
  shall be increased to the next highest full percent).
    (B) Period during which rate applies.
    (i)  In  general.  Except  as  provided  in  clause   (ii)   of   this
  subparagraph,  the  federal  short-term rate for the first month in each
  calendar quarter shall apply during the first calendar quarter beginning
  after such month.
    (ii) Special  rule  for  the  month  of  September,  nineteen  hundred
  eighty-nine.  The  federal  short-term  rate  for  the  month  of April,
  nineteen hundred eighty-nine shall apply with  respect  to  setting  the
  rate   of   interest  for  the  month  of  September,  nineteen  hundred
  eighty-nine.
    (4) Publication of interest rate. The commissioner  of  finance  shall
  cause  to  be  published  in the city record, and give other appropriate
  general notice of, the interest rate to be set under this subdivision no
  later than twenty days preceding the first day of the  calendar  quarter
  during  which such interest rate applies. The setting and publication of
  such interest rate  shall  not  be  included  within  paragraph  (a)  of
  subdivision  five  of section one thousand forty-one of the city charter
  relating to the definition of a rule.
    * (h) Miscellaneous. (1) The certificate of the  commissioner  to  the
  effect  that  a  tax  has not been paid or that information has not been
  supplied pursuant to the provisions of this chapter shall be presumptive
  evidence thereof.
    (2) Cross-reference: For criminal penalties, see chapter forty of this
  title.
    * NB Amended Ch. 765/85 § 45, language juxtaposed per Ch. 907/85 § 14
    (i) Failure to file  information  return.  If  a  cooperative  housing
  corporation   fails   to  file  an  information  return  required  under
  subdivision (g) of section 11-2105 of this  chapter  on  or  before  the


  prescribed  date  (determined  with  regard to any extension of time for
  filing), unless it is shown that such failure is due to reasonable cause
  and not  due  to  willful  neglect,  there  shall  be  imposed  on  such
  cooperative  housing  corporation  a  penalty of one hundred dollars for
  each such failure.