Section 11-2515. Interest and penalties

(a) Interest on underpayments. If
  any amount of tax is not paid or paid over 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 § 75, 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 11-2506 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 paragraph.
    (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 § 75, 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 § 75, 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
  two times the underpayment.
    (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.
    (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)  Officers  of  a  corporate  operator  or  room
  remarketer  and  partners  in a partnership which is an operator or room
  remarketer shall be personally liable for the tax or portion of such tax
  collected or required to be collected by such corporation or partnership
  under this chapter, and subject to the penalties and interest imposed by
  this section.
    (2) The certificate of the commissioner of finance to the effect  that
  a tax has not been paid, that a return, bond or registration certificate
  has  not  been filed, or that information has not been supplied pursuant
  to the  provisions  of  this  chapter,  shall  be  presumptive  evidence
  thereof.
    (3) Cross-reference: For criminal penalties, see chapter forty of this
  title.
    (i) Any person required to make or maintain records under this chapter
  who  fails  to  make  or  maintain or make available to the commissioner
  these records is subject to a penalty not to exceed one thousand dollars
  for the first quarterly period or part thereof  for  which  the  failure
  occurs  and  not  to  exceed  five  thousand dollars for each additional
  quarterly period or part thereof for  which  the  failure  occurs.  This
  penalty is in addition to any other penalty provided for in this chapter

  but may not be imposed and collected more than once for failures for the
  same  quarterly  period  or part thereof. If the commissioner determines
  that a failure to make or maintain or  make  available  records  in  any
  quarterly period was entirely due to reasonable cause and not to willful
  neglect,  the  commissioner  must  remit  the  penalty  imposed for that
  quarterly period. These penalties will be paid and disposed  of  in  the
  same manner as other revenues from this chapter. These penalties will be
  determined, assessed, collected, paid and enforced in the same manner as
  the  tax imposed by this chapter, and all the provisions of this chapter
  relating to tax will be deemed also to apply to the penalties imposed by
  this  subdivision.  For  purposes  of  the  penalty  imposed   by   this
  subdivision,  a  person  will  be  considered  to have failed to make or
  maintain  the  required  records  when  the  commissioner   of   finance
  determines  that  the  records  made  or maintained by that person for a
  quarterly period do not enable the commissioner to verify  occupancy  or
  the  amounts  received  for  such  occupancy  or  the taxability of that
  occupancy and to conduct a complete audit.
    (j) Any person required to make or maintain records under this chapter
  who fails to present and make available these records  in  an  auditable
  form is subject to a penalty not to exceed one thousand dollars for each
  quarterly  period  or  part thereof for which records maintained by that
  person are not presented and made available by that person in  auditable
  form,  even  if  these records are adequate to verify credits, receipts,
  and the taxability thereof and to perform a complete audit. This penalty
  is in addition to any other penalty provided for in  this  chapter,  but
  will  not be imposed and collected more than once for these failures for
  the  same  quarterly  period  or  part  thereof.  If  the   commissioner
  determines  that  any  failure  described  in  this  subdivision  for  a
  quarterly period was entirely due to reasonable cause and not to willful
  neglect, the commissioner  must  remit  the  penalty  imposed  for  that
  quarter.  The  penalties  imposed  by  this subdivision will be paid and
  disposed of in the same manner as  other  revenues  from  this  chapter.
  These  penalties  will  be  determined,  assessed,  collected,  paid and
  enforced in the same manner as the tax imposed by this chapter, and  all
  the  provisions  of  this chapter relating to tax will be deemed also to
  apply to the penalties imposed by this subdivision. For purposes of  the
  penalty imposed by this subdivision, a person will be considered to have
  failed  to present and make records available in auditable form when the
  records presented by  that  person  for  that  quarter  lack  sufficient
  organization,  such  as  by  date,  invoice  number,  sales receipts, or
  sequential numbering, or are otherwise inadequate (without reorganizing,
  reordering or otherwise rearranging the records into an auditable  form)
  to  permit  direct  reconciliation  of  the  receipts, invoices or other
  source documents with the entries for the quarterly period in the  books
  and records and on the returns of that person.
    (k) Any person who, having elected to maintain in an electronic format
  any  portion  or  all  of  the records he or she is required to make and
  maintain by this chapter,  fails  to  present  and  make  these  records
  available  and  accessible  to the commissioner in electronic format, is
  subject to a penalty not  to  exceed  five  thousand  dollars  for  each
  quarterly  period or part thereof for which these electronic records are
  not  presented  and  made  available  and   accessible   upon   request,
  notwithstanding that the records may also be maintained and available in
  hard  copy  format.  This  penalty  is  in addition to any other penalty
  provided for in this chapter, but may not be imposed and collected  more
  than  once  for a failure for the same quarterly period or part thereof.
  Provided, however, nothing in this subdivision will prevent the separate
  imposition, if applicable, of any penalty imposed by subdivision (i)  or

  (j)  of  this  section for the same quarterly period or part thereof. If
  the commissioner  determines  that  the  failure  to  present  and  make
  electronically   maintained  records  available  and  accessible  for  a
  quarterly period was entirely due to reasonable cause and not to willful
  neglect,  the  commissioner  must  remit  the  penalty  imposed for that
  quarter. These penalties will be paid and disposed of in the same manner
  as other revenues from this chapter. These penalties will be determined,
  assessed, collected, paid and enforced in the same  manner  as  the  tax
  imposed by this chapter, and all the provisions of this chapter relating
  to  tax  will  be  deemed  also  to apply to the penalty imposed by this
  subdivision. For purposes of the penalty imposed by this subdivision,  a
  failure to present and make available and accessible a record maintained
  in  electronic  format  includes  not  only  the denial of access to the
  requested records that were  maintained  electronically,  but  also  the
  failure   to   make  available  to  the  commissioner  the  information,
  knowledge,  or  means  necessary  to  access  and  otherwise   use   the
  electronically  maintained  records in the inspection and examination of
  these records.
    (l) Aiding or assisting in the giving of fraudulent returns,  reports,
  statements  or other documents. Any person who, with the intent that tax
  be evaded, for a fee or other compensation or  as  an  incident  to  the
  performance   of   other   services   for  which  that  person  receives
  compensation, aids or assists in, or procures, counsels, or advises  the
  preparation  or  presentation  under this chapter, or in connection with
  any  matter  arising  under  this  chapter,  of  any   return,   report,
  declaration,  statement or other document that is fraudulent or false as
  to any material matter, or supplies any false or fraudulent information,
  whether or not such falsity or fraud is with the knowledge or consent of
  the person authorized  or  required  to  present  that  return,  report,
  declaration,  statement  or  other  document,  will  pay  a  penalty not
  exceeding five thousand dollars. The definitions in  subsection  (l)  of
  section  one  thousand eighty-five of the tax law apply for the purposes
  of this penalty.
    (m) False or fraudulent document penalty. Any taxpayer that submits  a
  false  or  fraudulent  document  to  the department will be subject to a
  penalty of one hundred dollars per document submitted, or  five  hundred
  dollars  per  tax  return submitted. This penalty will be in addition to
  any other penalty provided by law.