Interest and penalties
16 rules
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(1) If any tax due under this article is not paid when due, by reason of extension granted, or otherwise, interest shall be added thereto at the rate imposed under section 39-21-110.5 from the due date thereof, in addition to any penalties which may be imposed by other provisions of this section. Interest on any deficiency in tax shall begin to accrue on the date prescribed in this article for payment of the tax.
(2) (a) If any person fails to file a return at the time required by the provisions of this article and no intent to evade the tax exists, and if there is a balance due to be paid with such return, there shall be collected as a penalty the sum of five dollars for such failure or five percent of the proper amount of tax on such return if the failure is for not more than one month, with an additional one-half percent for each additional month or fraction thereof during which such failure continues, not exceeding twelve percent in the aggregate, whichever is greater.
(b) If any person fails to pay any tax by the due date under the provisions of this article, there shall be collected as a penalty the sum of five dollars for such failure or five percent of the amount of such tax if the failure is for not more than one month, with an additional five-tenths of one percent for each additional month or fraction thereof during which such failure continues, not exceeding twelve percent in the aggregate, whichever is greater.
(c) As used in paragraphs (a) and (b) of this subsection (2), tax means the net amount of tax required to be shown on the return reduced by any amount 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 on the return. If the penalties provided for in paragraphs (a) and (b) of this subsection (2) both apply, then only the larger of the two penalties shall be assessed.
(d) If any person fraudulently or willfully fails to file any return, there shall be collected as a penalty for such failure the sum of seventy-five dollars or one hundred percent of the amount of the tax, if any, whichever is greater.
(e) If any person files a fraudulent, frivolous, or willfully false return, there shall be collected as a penalty the sum of one hundred fifty dollars or one hundred fifty percent of the amount of the tax, if any, whichever is greater.
(f) If, after determination and assessment of any tax imposed by this article, any person fails to pay the same within the time limited by any notice and demand sent to him by the executive director, there shall be collected as a penalty for such failure a sum equal to fifteen percent of the amount of the tax demanded.
(g) If any person fraudulently fails to pay any tax when due under the provisions of this article or willfully seeks to evade the payment thereof, there shall be collected as a penalty for such failure a sum equal to one hundred fifty percent of the amount of the tax.
(g.5) (I) If a tax return or a claim for refund is prepared, for compensation, by a person other than the taxpayer and if an understatement of liability with respect to such return or claim is due to the preparer's willful or reckless disregard of applicable laws or rules, as evidenced by the repeated assertion of a position that the preparer knew or should have known did not have a realistic possibility of being sustained on its merits, there shall be collected from the preparer a penalty of five hundred dollars. If the tax return preparer is employed by another person in the business of tax return preparation and if the employer either ordered the understatement of liability or had knowledge of the understatement of liability and did not attempt to prevent the tax return preparer from making the understatement of liability, an equivalent penalty may also be collected from the employer. A separate penalty shall be collected for each tax return or claim for refund prepared as described in this paragraph (g.5).
(II) This subsection (2)(g.5) shall not apply to:
(A) A certified public accountant who is permitted to practice under article 100 of title 12. If the executive director becomes aware of conduct by a tax return preparer exempted by this subsection (2)(g.5)(II) that would, but for such exemption, subject the tax return preparer to a penalty under subsection (2)(g.5)(I) of this section, the executive director may disclose the name of such tax return preparer to the state board of accountancy.
(B) A person who is regularly or continuously employed by another and, acting at the direction of the employer, prepares that employer's return or claim for refund; or
(C) A person who furnishes only typing, reproducing, or other ministerial or administrative assistance to a tax return preparer.
(h) If any part of any deficiency is due to negligence or disregard of the laws or rules or regulations but without intent to defraud, twenty-five percent of the total amount of the deficiency, in addition to such deficiency, shall be assessed, collected, and paid in the same manner as if it were a deficiency.
(i) All of the penalties provided in paragraphs (a) to (h) of this subsection (2) shall be cumulative and shall be collected at the same time and in the same manner as the tax.
(j) The executive director, for good cause, may waive or reduce any penalties assessed pursuant to this article and interest imposed in excess of the rate imposed pursuant to section 39-21-110.5, upon making a record of his reasons therefor.
(k) The provisions of this section shall not apply to any estimated tax required to be paid by or under the provisions of sections 39-22-605 and 39-22-606.
(3) (a) Any person required under this article or required by regulations made under authority thereof, to make a return, keep any records, or supply any information, for the purpose of the computation, assessment, or collection of any tax imposed by this article, who willfully fails to make such return, keep such records, or supply such information at the time required by law or regulations, in addition to other penalties provided by law, shall be punished as provided in section 39-21-118.
(b) Any person required under this article to collect, account for, and pay over any tax imposed by this article, who willfully fails to collect or truthfully account for and pay over such tax, and any person who willfully fails to pay any tax, or in any manner evades or defeats any tax imposed by this article or the payment thereof, in addition to other penalties provided by law, shall be punished as provided in section 39-21-118.
(c) Person, as used in this subsection (3), includes an officer or employee of a corporation or a member or employee of a partnership or limited liability company, who as such an officer, employee, or member is under a duty to perform the act in respect to which the violation occurs.