2023 New York Laws › TAX - Tax › Article 28 - Sales and Compensating Use Taxes › Part 4 - Administrative Provisions › 1145 - Penalties and Interest.

§ 1145. Penalties and interest. (a) (1) (i) Any person failing to file
a  return or to pay or pay over any tax to the tax commission within the
time required by or pursuant to this article (determined with regard  to
any  extension  of  time  for  filing  or  paying) shall be subject to a
penalty of ten percent of the amount of tax due if such failure  is  for
not  more  than  one  month,  with  an  additional  one percent for each
additional  month  or  fraction  thereof  during  which   such   failure
continues,  not  exceeding  thirty  percent  in the aggregate. Provided,
however, in the case of a failure to file such return within sixty  days
of  the date prescribed for filing of such return by or pursuant to this
article (determined with regard to any extension of  time  for  filing),
the  penalty  imposed  by  this  subparagraph 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. For the purpose of the
preceding sentence, 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.  In
the  case of a failure to file a return by a person required to register
with  the  tax  commission  as  provided  in  section   eleven   hundred
thirty-four,  in no event shall the penalty for failure to file a return
be less than fifty dollars.
(ii) If any amount of tax is not paid  on  or  before  the  last  date
prescribed  in  this article for payment, interest on such amount at the
rate of fourteen and one-half percent per annum or at  the  underpayment
rate  set  by  the  commissioner  pursuant  to  section  eleven  hundred
forty-two of this part, whichever is greater,  shall  be  paid  for  the
period  from  such  last  date  to  the  date  paid,  whether or not any
extension  of  time  for  payment  was  granted.  Interest  under   this
subparagraph  shall  not  be paid if the amount thereof is less than one
dollar.
(iii) If the commissioner of taxation and finance determines that such
failure or delay was due to reasonable cause  and  not  due  to  willful
neglect,  he  shall  remit  all of such penalty and that portion of such
interest that exceeds  the  interest  that  would  be  payable  if  such
interest  were computed at the underpayment rate set by the commissioner
of taxation and finance pursuant to section  eleven  hundred  forty-two.
The  commissioner  shall  promulgate  rules  and  regulations as to what
constitutes reasonable cause.
(iv) Provided, however, in the case  of  a  long-form,  part-quarterly
return, no penalty or interest shall be payable with respect to a return
and  payment  of  estimated  tax  required  to  be  filed and paid under
subdivisions (a) and (b) of section eleven  hundred  thirty-seven-A  for
March,  nineteen  hundred  seventy-six,  nineteen hundred seventy-seven,
nineteen hundred seventy-eight, nineteen hundred seventy-nine,  nineteen
hundred   eighty,  nineteen  hundred  eighty-one  and  nineteen  hundred
eighty-two, if such returns are timely filed, accompanied by  a  payment
of  not  less than ninety percent of the tax as finally determined to be
due and  payable  for  March,  nineteen  hundred  seventy-six,  nineteen
hundred  seventy-seven, nineteen hundred seventy-eight, nineteen hundred
seventy-nine, nineteen hundred eighty, nineteen hundred  eighty-one  and
nineteen  hundred  eighty-two.  Provided, further, that interest, at the
rate  authorized  under  subdivision  nine  of  section  eleven  hundred
forty-two,  shall  be payable upon the amount of any underpayment of the
tax due with the  returns  due  on  March  twentieth,  nineteen  hundred
seventy-six,    nineteen   hundred   seventy-seven,   nineteen   hundred
seventy-eight, nineteen hundred seventy-nine, nineteen  hundred  eighty,
nineteen  hundred  eighty-one  and  nineteen hundred eighty-two, for the

period of such underpayment, but not beyond the due  date  of  the  next
part-quarterly return.
(v)  Provided,  further,  in  the case of a March estimated return, no
penalty or interest shall be  payable  with  respect  to  a  return  and
payment of estimated tax required to be filed and paid under subdivision
(c) of section eleven hundred thirty-seven-A for March, nineteen hundred
eighty-three  and  each  subsequent  March  through and including March,
nineteen hundred ninety, if such returns are timely  filed,  accompanied
by  a  payment of either: (A) not less than ninety percent of the tax as
finally determined to be due and payable for the month of March in which
the March estimated tax return is required to be filed; or  (B)  in  the
event such person has had at least four successive quarterly tax periods
immediately  preceding the March twentieth for which the return is to be
filed, at least one-third  of  the  sales  and  compensating  use  taxes
payable  by  such  person to the commissioner of taxation and finance in
the comparable quarter of the immediately preceding year. However, where
interest is payable because of a failure to  meet  the  requirements  of
either  clause (A) or (B) of this subparagraph such interest shall be at
the underpayment rate  authorized  under  subdivision  nine  of  section
eleven  hundred forty-two upon any underpayment of the amount of tax due
for the period of such underpayment, but not beyond the due date of  the
next  part-quarterly  return.  For  purposes  of  this subparagraph, the
underpayment of the amount of tax  due  shall  be:  (A)  the  difference
between  the  amount  paid  and  ninety  percent  of  the amount finally
determined  to  be  due  and  payable  for   March,   nineteen   hundred
eighty-three and for March of each subsequent year through and including
March,  nineteen  hundred ninety, or (B) if such person has had at least
four successive quarterly tax periods immediately  preceding  the  March
for  which  the return was filed, the difference between the amount paid
and one-third of the sales and compensating use taxes  payable  by  such
person to the commissioner for the comparable quarter of the immediately
preceding  year  under  this article, whichever is less. Notwithstanding
the preceding sentence, for purposes of this subparagraph: (1)  the  tax
as finally determined to be due and payable for such month of March, and
(2)  the  sales  and  compensating  use taxes payable for the comparable
quarter of the immediately  preceding  year;  shall  not  include  taxes
imposed  by section eleven hundred seven or eleven hundred eight of this
article or pursuant to the authority  of  article  twenty-nine  of  this
chapter.  Provided,  however, all other provisions of this article shall
apply in the determination of such taxes.
(vi) Any person required by this article to file a return,  who  omits
from  the  total  amount  of  state and local sales and compensating use
taxes required to be shown on a return an amount which is in  excess  of
twenty-five  percent of the amount of such taxes required to be shown on
the return shall be subject to a penalty equal to  ten  percent  of  the
amount  of such omission. The amount of the omission under the preceding
sentence shall be reduced by that  portion  of  the  omission  which  is
attributable to the tax treatment of any item by such person if there is
or  was  substantial  authority  for  such  treatment,  or any item with
respect to which the relevant facts affecting the item's  tax  treatment
are adequately disclosed in the return or in a statement attached to the
return.  If  the tax commission determines that such omission was due to
reasonable cause and not due to willful neglect, it shall remit  all  of
such  penalty.  The  penalty provided for in this subparagraph shall not
apply to any return of estimated tax required to be filed under  section
eleven hundred thirty-seven-A.
(vii) Any owner of a filling station who shall willfully and knowingly
have  in  his custody, possession or under his control any motor fuel or

diesel motor fuel on which (A) the prepaid tax imposed by section eleven
hundred two  of  this  article  has  not  been  assumed  or  paid  by  a
distributor  registered  as such under article twelve-A of this chapter,
or  (B)  the  prepaid  tax imposed by section eleven hundred two of this
article was required to have been passed through to him and has not been
included in the cost of such fuel to him shall be liable for  a  penalty
in the amount of twice the tax so not assumed or paid, or included. Such
penalty  shall  be  determined, assessed, collected and paid in the same
manner as taxes imposed by this article and all the provisions  of  this
article  relating  thereto  shall be deemed also to refer to the penalty
imposed by this paragraph  and,  for  this  purpose,  the  term  "person
required  to  collect  tax"  shall  be  deemed  to include an owner of a
filling station. Such penalty may be determined at any time within three
years after such motor fuel or diesel motor fuel shall  have  come  into
his  custody,  possession or control. For purposes of this subparagraph,
such owner shall willfully and knowingly have in his custody, possession
or under his control motor fuel or diesel motor fuel on which  (A)  such
tax  has not been assumed or paid by a distributor registered as such or
(B) such tax was required to have been passed through to him and has not
been included in the cost of such fuel  to  him  where  such  owner  has
knowledge  of  the requirement that such taxes be paid and where, to his
knowledge, such taxes have not been so included. For  purposes  of  this
subparagraph,  it  shall  be  presumptive evidence that such owner shall
willfully and knowingly have in his custody,  possession  or  under  his
control  motor  fuel  or diesel motor fuel (A) on which such tax has not
been assumed or paid by a distributor registered as such or (B) on which
such tax was required to have been passed through to  him  and  has  not
been  included  in the cost of such fuel to him where such owner has not
received the certification required by subdivision (h) of section eleven
hundred thirty-two of this article at the time of delivery of such motor
fuel  or  diesel  motor  fuel  or,  in  those  circumstances  where  the
commissioner has authorized the delivery of such certification at a time
after  delivery  of  the  motor  fuel  or diesel motor fuel, at the time
prescribed by the commissioner.
(viii) Any person required to collect  tax  who  sells  cigarettes  at
retail  and  who  shall  willfully  and  knowingly have in such person's
custody or possession or under such person's control any  cigarettes  on
which  (A)  the  prepaid  tax imposed by section eleven hundred three of
this article has not been assumed or paid by an agent licensed  as  such
under  article twenty of this chapter, or (B) the prepaid tax imposed by
such section eleven hundred three  was  required  to  have  been  passed
through  to  such  person  and has not been included in the cost of such
cigarettes to such person, shall be liable for a penalty in  the  amount
of twice the tax not so assumed or paid, or included. Such penalty shall
be  determined, assessed, collected and paid in the same manner as taxes
imposed by this article and all the provisions of this article  relating
thereto  shall  be  deemed  also to refer to the penalty imposed by this
subparagraph. Such penalty may be determined at any  time  within  three
years  after  such cigarettes shall have come into such person's custody
or possession or under such  person's  control.  For  purposes  of  this
subparagraph,  such  person  shall  willfully and knowingly have in such
person's custody or possession or under such person's control cigarettes
on which (A) such tax has not been assumed or paid by an agent  licensed
as  such  under  article  twenty  of  this  chapter, or (B) such tax was
required to have been passed through to such person  and  has  not  been
included  in  the  cost  of  such  cigarettes to such person, where such
person has knowledge of the requirement  that  such  taxes  be  paid  or
assumed or so included and where, to such person's knowledge, such taxes

have  not  been  so paid or assumed or so included. For purposes of this
subparagraph, it shall be presumptive evidence that  such  person  shall
willfully  and  knowingly have in such person's custody or possession or
under  such  person's  control  cigarettes on which (A) such tax has not
been assumed or paid by an agent authorized as such under  such  article
twenty  or (B) such tax was required to have been passed through to such
person and has not been included in the cost of such cigarettes to  such
person  where such person has not received the certification required by
subdivision (k) of section eleven hundred thirty-two of this article  at
the time of delivery of such cigarettes or, in those circumstances where
the  commissioner has authorized the delivery of such certification at a
time after delivery of the cigarettes, at the  time  prescribed  by  the
commissioner.
(ix)  In  addition to any other penalty or interest under this article
or other law, any credit card issuer or fuel distributor, as defined  in
subdivision  (h) of section eleven hundred thirty-nine of this part, who
receives a refund or credit pursuant to such subdivision knowing, at the
time the refund application is filed or the credit is  taken,  that  the
motor  fuel  or  diesel  motor fuel purchased was not for the government
entity's own use or consumption, shall be liable for a  penalty  in  the
amount  of  the  tax  refunded or credited, plus applicable interest due
under this article.
(2) If the failure to pay or pay over  any  tax  to  the  commissioner
within the time required by this article is due to fraud, in lieu of the
penalties  and  interest  provided  for in subparagraphs (i) and (ii) of
paragraph one of this subdivision, there shall be added to the tax (i) a
penalty of two times the amount of the tax due, plus  (ii)  interest  on
such  unpaid  tax at the rate of fourteen and one-half percent per annum
or the underpayment rate of interest set by the commissioner pursuant to
section eleven hundred forty-two of this part, whichever is greater, for
the period beginning on the last day prescribed by this article for  the
payment  of such tax (determined without regard to any extension of time
for paying) and ending on the day on which such tax is paid.
(3) (i) Any person required to obtain a certificate of authority under
section eleven hundred thirty-four of this part who, without  possessing
a  valid  certificate of authority, (A) sells tangible personal property
or services subject to tax, receives amusement  charges  or  operates  a
hotel, (B) purchases or sells tangible personal property for resale, (C)
sells  petroleum products, or (D) sells cigarettes shall, in addition to
any other penalty imposed by this chapter, be subject to a penalty in an
amount not exceeding five hundred dollars for the  first  day  on  which
such  sales  or  purchases  are  made,  plus an amount not exceeding two
hundred dollars for each subsequent day on which such sales or purchases
are made, not to exceed ten thousand dollars in the aggregate.
(ii) Any person who fails to surrender a certificate of authority when
a notice of revocation or suspension has become final shall, in addition
to any other penalty imposed by this chapter, be subject to a penalty in
an amount not exceeding five hundred dollars for the first day  of  such
failure,  together with a penalty in an amount not exceeding two hundred
dollars for each subsequent day of  such  failure,  not  to  exceed  ten
thousand dollars in the aggregate.
(iii)  Any person described in paragraph one or two of subdivision (a)
of section eleven hundred thirty-four who takes possession  of  or  pays
for  business  assets under circumstances requiring notification by such
person to the tax commission pursuant  to  subdivision  (c)  of  section
eleven   hundred   forty-one  without  having  filed  a  certificate  of
registration pursuant to section eleven hundred  thirty-four  shall,  in

addition  to  any other penalty imposed by this chapter, be subject to a
penalty in an amount not exceeding two hundred dollars.
(iv)  If  the  tax  commission  determines  that  any  failure  or act
described in this paragraph was due to reasonable cause and not  due  to
willful neglect, it may remit all or part of such penalty.
(4)  Any  person  required by this article to display a certificate of
authority, who fails to display such certificate in the manner  required
by  this article or any rule or regulation adopted by the tax commission
in connection with such requirement shall,  in  addition  to  any  other
penalty  imposed  by  this  chapter,  be  subject  to a penalty of fifty
dollars. If the tax commission determines that such failure was  due  to
reasonable  cause  and  not  due to willful neglect, it may remit all or
part of such penalty.
(5) Any person who issues  a  false  or  fraudulent  resale  or  other
exemption  certificate  or  document  with intent to evade tax shall, in
addition to any other penalty imposed by this chapter, be subject  to  a
penalty  of  one hundred percent of the tax that would have been due had
there not been a misuse of such certificate or document and a penalty of
fifty dollars for each such certificate or document.
(6) The tax commission shall promulgate rules and  regulations  as  to
what constitutes reasonable cause for purposes of this subdivision.
(7)  The penalties and interest provided for in this subdivision shall
be paid and disposed of in the same manner as other revenues  from  this
article.  Such  penalties  and  interest  may  be  determined, assessed,
collected and enforced in the same manner as the  tax  imposed  by  this
article. Interest under this subdivision shall be compounded daily.
(8)  Notwithstanding  any  other provision of this article, any person
who willfully files or amends a return that contains  false  information
to  reduce or eliminate a liability shall be subject to a penalty not to
exceed one thousand  dollars  per  return.  This  penalty  shall  be  in
addition to any other penalty provided by law.
(b)  Cross-reference: For criminal penalties, see article thirty-seven
of this chapter.
(c) Any person failing to file a return or to pay any tax required  to
be  prepaid  to  the  commissioner  with respect to motor fuel or diesel
motor fuel pursuant to the provisions of section eleven hundred  two  of
this article within the time required by this article shall, in addition
to  any  other  penalty provided in this article or otherwise imposed by
law, be subject to a penalty equal to the amount of tax required  to  be
so  prepaid  pursuant  to  the provisions of such section eleven hundred
two.  If the commissioner determines that such failure to file a  return
or  to  pay  any  such  tax  was  due to reasonable cause and not due to
willful neglect, he shall remit all or any part of such penalty.
(d) The certificate of the tax commission 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 article shall be presumptive evidence thereof.
(e) Any officer, director, shareholder or employee of a corporation or
of a dissolved corporation, any employee of a partnership, any  employee
or  manager  of  a  limited  liability  company,  or  any employee of an
individual proprietorship, who as such officer,  director,  shareholder,
employee  or  manager  is  under  a  duty  to  act for such corporation,
partnership, limited liability company or  proprietorship  in  complying
with any requirement of this article, and any member of a partnership or
limited  liability  company,  which  fails to pay the tax required to be
prepaid by section eleven hundred two or eleven hundred  three  of  this
article,  shall,  in  addition  to  other  penalties provided by law, be
liable for a penalty equal to the total amount of the tax not paid, plus

penalties and interest computed pursuant  to  subdivision  (a)  of  this
section  as  if such person were a distributor under article twelve-a of
this  chapter  or  an  agent  under  article  twenty  of  this  chapter,
respectively.  If  the commissioner determines that such failure was due
to reasonable cause and not due to  willful  neglect,  the  commissioner
shall  remit all or part of such penalty imposed under this subdivision.
Such penalty shall be determined, assessed, collected and  paid  in  the
same  manner as the tax required to be prepaid by section eleven hundred
two or eleven hundred three, as the case may be,  of  this  article  and
shall  be  disposed  of  as provided with respect to moneys derived from
either such tax,  respectively.  Provided,  however,  that  the  penalty
provided  for  by this subdivision shall not be imposed on any person on
account of the failure of such a distributor or agent  to  pay  the  tax
required  to  be prepaid by section eleven hundred two or eleven hundred
three, respectively, of this article if such person is liable  for  such
tax  pursuant  to  subdivision (b) of such section eleven hundred two or
subdivision (b) of such section eleven hundred three, respectively.
(f) Any entertainment promoter who authorizes an entertainment  vendor
to  make taxable sales of tangible personal property at an entertainment
event with respect to which he is a promoter, where such vendor  is  not
registered  under  subdivision (a) of section eleven hundred thirty-four
shall, in addition to any other penalty  provided  in  this  article  or
otherwise  imposed  by law, be subject to a penalty of not more than ten
thousand dollars with respect to each such entertainment event.
(g) (1) Any person failing to  keep  any  of  the  additional  records
required  to  be  kept pursuant to section eleven hundred forty-two-A of
this article, shall, in addition to any other penalty provided  in  this
article  or  otherwise  imposed  by  law,  be subject to a penalty in an
amount not to exceed five hundred dollars where such  records  have  not
been  kept for a month or part thereof. Such penalty for failure to keep
such records shall not be imposed and collected more than once  for  any
such failure to keep records for such month or part thereof.
(2)  Any person described in subdivision (a) of section eleven hundred
forty-two-A of this chapter who fails to consent  to  the  entering  and
walking  about  for  the  purposes  described  in  such  section, or who
interferes with the commissioner  or  any  authorized  employee  of  the
department, or the agent of either of them, with respect to entering and
walking  about  for  the  purposes  described  in such section, or whose
employee fails to consent or interferes with such entering  and  walking
about  for the purposes described in such section, shall, in addition to
any other penalty provided in this article or otherwise imposed by  law,
be  subject to a penalty in an amount not to exceed five hundred dollars
for the first day of such failure to consent or the first  day  of  such
interference.  Each  subsequent  day  any  such failure to consent to or
interference with such entering and walking about shall occur  shall  be
subject  to an additional penalty not to exceed one thousand dollars. In
no event, shall such  penalties  exceed  ten  thousand  dollars  in  the
aggregate.
(3)  If  the  commissioner  determines  that such failure to keep such
records described in paragraph one of  this  subdivision  or  that  such
failure to consent to or such interference with the entering and walking
about  described  in  paragraph  two  of  this  subdivision  was  due to
reasonable cause and not due to willful neglect, the commissioner  shall
remit  all or any part of such penalty. Such penalties shall be paid and
disposed of in the same manner as other revenues from this article. Such
penalties shall be determined, assessed, collected, paid and enforced in
the same manner  as  the  tax  imposed  by  this  article  and  all  the

provisions of this article relating to tax shall be deemed also to apply
to the penalties imposed by this subdivision.
(h)  (1)  Any person required to file a report pursuant to subdivision
(h) of section eleven hundred thirty-six of this article, who  fails  to
include  the  name  or  certificate of authority number of any itinerant
vendor or the sales for resale made to such vendor and the amounts paid,
charged or due thereon, required to be included in such report,  or  who
fails  to  include such information which is true and correct, shall, in
addition to any other penalty provided  in  this  article  or  otherwise
imposed  by  law,  be  subject  to  a penalty computed by multiplying an
amount not to exceed fifty dollars by the number  of  itinerant  vendors
required to be included in such report that are not so included (whether
or  not  such  a  report  is filed) or for which incomplete or incorrect
information has been reported.
(2)  Any  person  failing  to  file  a  report  required  pursuant  to
subdivision  (h)  of  section  eleven hundred thirty-six of this article
within the time required by regulations  promulgated  pursuant  to  such
subdivision,  shall,  in  addition to any other penalty provided in this
article or otherwise imposed by law, be  subject  to  a  penalty  in  an
amount not to exceed five hundred dollars for each such failure.
(3)  In  no  event  shall the penalty imposed by paragraph one of this
subdivision, or the aggregate of the penalties imposed by paragraphs one
and two of this subdivision, exceed five thousand dollars for any twelve
month period commencing June first and ending May  thirty-first  of  the
following year.
(4)  If  the  commissioner  determines  that  any  failure  to include
information, or to include true and correct  information,  in  a  report
required  to  be filed, or failure to timely file a report, as described
in this subdivision, was due to reasonable cause and not due to  willful
neglect,  the  commissioner  shall  remit  all  or  part  of  any of the
penalties imposed  under  this  subdivision.  Such  penalties  shall  be
determined,  assessed,  collected, paid, disposed of and enforced in the
same manner as taxes imposed by this article and all the  provisions  of
this  article  relating  thereto  shall  be deemed also to refer to such
penalties.
* (i) Any person required to  make  or  maintain  records  under  this
article  (but  not  including  the records required under section eleven
hundred forty-two-A of this part) 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 quarter 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 article 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 quarter 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 article. These  penalties
will  be  determined, assessed, collected, paid and enforced in the same
manner as the tax imposed by this article, and  all  the  provisions  of
this  article  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  records  made  or
maintained  by  that  person  for  a  quarterly period make it virtually

impossible to verify sales receipts or the taxability of those  receipts
and to conduct a complete audit.
* NB There are 3 sb (i)'s
* (i)(1)  Every  person  required  to  file  an  information return by
subdivision (i) of section eleven hundred thirty-six of  this  part  who
(A) fails to provide any of the information required by paragraph one or
two of subdivision (i) of section eleven hundred thirty-six of this part
for  a  vendor, operator, or recipient, or who fails to include any such
information that is true and correct (whether or not such  a  report  is
filed) for a vendor, operator, or recipient, or (B) fails to provide the
information  required  by  paragraph  four of subdivision (i) of section
eleven hundred thirty-six  of  this  part  to  a  vendor,  operator,  or
recipient  specified  in  paragraph  four  of subdivision (i) of section
eleven hundred thirty-six of this part, will, in addition to  any  other
penalty provided in this article or otherwise imposed by law, be subject
to  a  penalty of five hundred dollars for ten or fewer failures, and up
to fifty dollars for each additional failure.
(2) Every person failing to file an  information  return  required  by
subdivision (i) of section eleven hundred thirty-six of this part within
the   time  required  by  subdivision  (i)  of  section  eleven  hundred
thirty-six of this part will, in addition to any other penalty  provided
for in this article or otherwise imposed by law, be subject to a penalty
in  an  amount not to exceed two thousand dollars for each such failure,
provided that the minimum penalty under this paragraph is  five  hundred
dollars.
(3)  In  no  event  will  the penalty imposed by paragraph one, or the
aggregate of the penalties imposed under paragraphs one and two of  this
subdivision, exceed ten thousand dollars for any annual filing period as
described  by  paragraph  three  of  subdivision  (i)  of section eleven
hundred thirty-six of this part.
(4) If the commissioner determines that any of the failures  that  are
subject to penalty under this subdivision was entirely due to reasonable
cause  and  not  due to willful neglect, the commissioner must remit the
penalty  imposed  under  this  subdivision.  These  penalties  will   be
determined,  assessed,  collected, paid, disposed of and enforced in the
same manner as taxes imposed by this article and all the  provisions  of
this  article  relating  thereto  will  be deemed also to refer to these
penalties.
* NB There are 3 sb (i)'s
* (i) 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 article, or  in  connection  with
any   matter   arising  under  this  article,  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 ten hundred eighty-five of this chapter apply for  the  purposes
of this penalty.
* NB There are 3 sb (i)'s
* (j)  Any  person  required  to  make  or maintain records under this
article 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  article,  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  article.
These  penalties  will  be  determined,  assessed,  collected,  paid and
enforced in the same manner as the tax imposed by this article, and  all
the  provisions  of  this article 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.
* NB There are 2 sb (j)'s
* (j)  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.
* NB There are 2 sb (j)'s
(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 article,  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 article, 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 article. These penalties will be determined,
assessed,  collected,  paid  and  enforced in the same manner as the tax
imposed by this article, and all the provisions of this article 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.