Section 11-1413. 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 seven and one-half 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.
    (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 § 78, 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 11-1406 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 § 78, 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 § 78, 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 § 78, 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  seven and one-half percent per annum. Such rate
  shall be the rate prescribed in paragraph two of  this  subdivision  but
  shall  not  be  less than seven and one-half 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) seven 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 of
  finance 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 § 78, language juxtaposed per Ch. 907/85 § 14