N.Y. General City Law art. 2-D, § 65: Additions to tax and civil penalties

§ 65. Additions to tax and civil penalties.--(a) Failure to file tax

return.--In case of failure to file a tax return under this local law 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 per cent of

the amount of such tax if the failure is for not more than one month,

with an additional five per cent for each additional month or fraction

thereof during which such failure continues, not exceeding twenty-five

per cent in the aggregate. For this purpose, 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.

(b) Deficiency due to negligence.--If any part of a deficiency is due

to negligence or intentional disregard of this local law or rules or

regulations hereunder (but without intent to defraud), there shall be

added to the tax an amount equal to five per cent of the deficiency.

(c) Failure to file declaration or underpayment of estimated tax.--If

any taxpayer fails to file a declaration of estimated tax or fails to

pay all or any part of an installment of estimated tax, he shall be

deemed to have made an underpayment of estimated tax. There shall be

added to the tax for the taxable year an amount at the rate of six per

centum per annum upon the amount of the underpayment for the period of

the underpayment but not beyond the fifteenth day of the fourth month

following the close of the taxable year. The amount of underpayment

shall be the excess of the amount of the installment which would be

required to be paid if the estimated tax were equal to seventy per cent

of the tax (two-thirds of the tax for farmers referred to in subdivision

(e) of section thirty-five) shown on the return for the taxable year (or

if no return was filed, of the tax for such year) over the amount, if

any, of the installment paid on or before the last day prescribed for

such payment. No underpayment shall be deemed to exist with respect to a

declaration or installment otherwise due on or after the taxpayer's

death.

(d) Exception to addition for underpayment of estimated tax.--The

addition to tax under subdivision (c) with respect to any underpayment

of any installment shall not be imposed if the total amount of all

payments of estimated tax made on or before the last date prescribed for

the payment of such installment equals or exceeds whichever of the

following is the lesser--

(1) The amount which would have been required to be paid on or before

such date if the estimated tax were whichever of the following is the

least--

(A) The tax shown on the return of the individual for the preceding

taxable year, if a return showing a liability for tax was filed by the

individual for the preceding taxable year and such preceding year was a

taxable year of twelve months, or

(B) An amount equal to the tax computed, at the rates applicable to

the taxable year, on the basis of the taxpayer's status with respect to

personal exemptions for the taxable year, but otherwise on the basis of

the facts shown on his return for, and the law applicable to, the

preceding taxable year, or

(C) An amount equal to seventy per cent of the tax for the taxable

year (two-thirds of the tax for farmers referred to in subdivision (e)

of section thirty-five) computed by placing on an annualized basis the

taxable income for the months in the taxable year ending before the

month in which the installment is required to be paid. For purposes of

this subparagraph, the taxable income shall be placed on an annualized

basis by--

(i) multiplying by twelve (or, in the case of a taxable year of less

than twelve months, the number of months in the taxable year) the

taxable income (computed without deduction for personal exemptions) for

the months in the taxable year ending before the month in which the

installment is required to be paid,

(ii) dividing the resulting amount by the number of months in the

taxable year ending before the month in which such installment date

falls, and

(iii) deducting from such amount the deductions for personal

exemptions allowable for the taxable year (such personal exemptions

being determined as of the last date prescribed for payment of the

installment); or

(2) An amount equal to ninety per cent of the tax computed, at the

rates applicable to the taxable year, on the basis of the actual taxable

income for the months in the taxable year ending before the month in

which the installment is required to be paid.

For the purposes of this subdivision the amounts specified in

subparagraphs (B) and (C) of paragraph (1) and in paragraph (2) shall be

computed without regard to any increase in the rates applicable to the

taxable year unless such increase was enacted at least thirty days prior

to the time a declaration or amended declaration of estimated tax is

required to be filed for such taxable year.

(e) Deficiency due to fraud.--If any part of a deficiency is due to

fraud, there shall be added to the tax an amount equal to fifty per cent

of the deficiency. This amount shall be in lieu of any other addition to

tax imposed by subdivision (a) or (b).

(f) Non-willful failure to pay withholding tax.--If any employer,

without intent to evade or defeat any tax imposed by this local law or

the payment thereof, shall fail to make a return and pay a tax withheld

by him at the time required by or under the provisions of section

fifty-four, such employer shall be liable for such tax and shall pay the

same together with interest thereon and the addition to tax provided in

subdivision (a), and such interest and addition to tax shall not be

charged to or collected from the employee by the employer. The

administrator shall have the same rights and powers for the collection

of such tax, interest and addition to tax against such employer as are

now prescribed by this title for the collection of tax against an

individual taxpayer.

(g) Willful failure to collect and pay over tax.--Any person required

to collect, truthfully account for, and pay over the tax imposed by this

local law who willfully fails to collect such tax or truthfully account

for and pay over such tax or willfully attempts in any manner to evade

or defeat the 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 collected, or not accounted for and

paid over. No addition to tax under subdivisions (b) or (e) shall be

imposed for any offense to which this subdivision applies.

(h) Failure to file certain information returns.--In case of each

failure to file a statement of a payment to another person, required

under authority of subdivision (c) of section thirty-eight (relating to

information at source, including the duplicate statement of tax withheld

on wages) on the date prescribed therefor (determined with regard to any

extension of time for filing), unless it is shown that such failure is

due to reasonable cause and not to willful neglect, there shall, upon

notice and demand by the administrator and in the same manner as tax, be

paid by the person so failing to file the statement, a penalty of one

dollar for each statement not so filed, but the total amount imposed on

the delinquent person for all such failures during any calendar year

shall not exceed one thousand dollars.

(i) Additional penalty.--Any person who with fraudulent intent shall

fail to pay, or to deduct or withhold and pay, any tax, or to make,

render, sign or certify any return or declaration of estimated tax, or

to supply any information within the time required by or under this

local law, shall be liable to a penalty of not more than one thousand

dollars, in addition to any other amounts required under this local law,

to be imposed, assessed and collected by the administrator. The

administrator shall have the power, in his discretion, to waive, reduce

or compromise any penalty under this subdivision.

(j) Additions treated as tax.--The additions to tax and penalties

provided by this section shall be paid upon notice and demand and shall

be assessed, collected and paid in the same manner as taxes, and any

reference in this local law to income tax or tax imposed by this local

law, shall be deemed also to refer to the additions to tax and penalties

provided by this section. For purposes of section sixty-one, this

subdivision shall not apply to--

(1) any addition to tax under subdivision (a) except as to that

portion attributable to a deficiency;

(2) any addition to tax under subdivision (c); and

(3) any additional penalty under subdivision (i).

(k) Determination of deficiency.--For purposes of subdivisions (b) and

(e), the amount shown as the tax by the taxpayer upon his return shall

be taken into account in determining the amount of the deficiency only

if such return was filed on or before the last day prescribed for the

filing of such return, determined with regard to any extension of time

for such filing.

(l) Person defined.--For purposes of subdivisions (g) and (i), the

term "person" includes an individual, corporation or partnership or an

officer or employee of any corporation (including a dissolved

corporation), or a member or employee of any partnership, who as such

officer, employee, or member is under a duty to perform the act in

respect of which the violation occurs.