2005 Vermont Code - § 7484. — Penalty and interest for delinquent payment

§ 7484. Penalty and interest for delinquent payment

(a) When a taxpayer, without fraud or willful intent to defeat or evade a tax liability imposed by this chapter, fails to pay that tax liability on the date prescribed therefor:

(1) the commissioner may assess and the taxpayer shall then pay, in accordance with section 7485 of this title, a sum of interest computed at the rate per annum established from time to time by the commissioner pursuant to section 3108 of this title on the unpaid amount of that tax liability for the period from the prescribed date to the date of full payment of the liability;

(2) if the taxpayer fails to pay the tax liability in full within thirty days of notice of such tax liability, in addition to any interest payable pursuant to subdivision (a)(1) of this section, the commissioner may assess, and the taxpayer shall then pay, in accordance with the provisions of section 7485 of this title, a penalty which shall be equal to five percent of the outstanding tax liability for each month, or portion thereof, following such notice, that the tax liability is not paid in full; provided, however, that in no event shall the amount of any penalty imposed hereunder exceed the lesser of $5,000.00 or 25 percent of the tax liability unpaid on the prescribed date of payment. For the purposes of this subsection, the taxpayer shall be considered to have notice of a tax liability imposed under this chapter on the date that the return is prescribed to be filed except, that in the case of a return filed at the prescribed time with timely payment of the full amount of tax liability shown on such return, notice to the taxpayer shall be the date of billing by the commissioner for any additional tax liability.

(b) When a taxpayer fraudulently or with willful intent to defeat or evade a tax liability imposed by this chapter, fails to pay that tax liability at the date prescribed therefor, the commissioner may assess and the taxpayer shall then pay, in accordance with the provisions of section 7485 of this title, a penalty equal to the amount of the tax liability, unpaid on the prescribed date of payment together with interest computed as provided in subdivision (a)(1) of this section. (Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title; amended 1979, No. 105 (Adj. Sess.), § 19; 1981, No. 191 (Adj. Sess.), § 7.)