N.Y. Tax Law § 1416: Interest and civil penalties

§ 1416. Interest and civil penalties. (a) If the commissioner of

taxation and finance determines that there has been an overpayment of

tax, interest at the overpayment rate set by the commissioner shall be

paid by the comptroller to the grantor or grantee, on any refund paid

pursuant to the provisions of section fourteen hundred twelve of this

article. If the commissioner determines that there has been an

underpayment of tax, the grantor or grantee shall pay interest to the

commissioner at the underpayment rate set by the commissioner on the

amount of any tax not paid. The commissioner shall set the rates of

interest to be paid on underpayment and overpayment of the taxes imposed

by this article at the underpayment and overpayment rates of interest

prescribed in subsection (e) of section one thousand ninety-six of this

chapter.

(b) Any grantor or grantee failing to file a return or to pay any tax

within the time required by this article shall be subject to a penalty

of ten per centum of the amount of tax due plus an interest penalty of

two per centum of such amount for each month of delay or fraction

thereof after the expiration of the first month after such return was

required to be filed or such tax became due, such interest penalty shall

not exceed twenty-five per centum in the aggregate. If the commissioner

of taxation and finance determines that such failure or delay was due to

reasonable cause and not due to willful neglect, the commissioner shall

remit, abate or waive all of such penalty and such interest penalty.

(c) If any amount of tax is not paid on or before the last date

prescribed in section fourteen hundred ten of this chapter for payment,

interest at the underpayment rate set by the commissioner on such amount

shall be paid for the period from such last date to the date paid. The

commissioner shall set the rate of interest to be paid at the

underpayment rate of interest prescribed in subsection (e) of section

one thousand ninety-six of this chapter. Interest under this subdivision

shall not be paid if the amount thereof is less than one dollar.

(d) The penalties and interest provided for in this section shall be

paid to the commissioner of taxation and finance and shall be

determined, assessed, collected and distributed in the same manner as

the tax imposed by this article and any reference to tax in this article

shall be deemed to refer to the penalties and interest imposed in this

section.