2023 New York Laws › GCT - General City › Article 2-D - City Personal Income Tax on Residents › 25-A-65 - Additions to Tax and Civil Penalties.

§ 65. Additions  to  tax and civil penalties.--(a) Failure to file tax
return.--In case of failure to file a tax return under this local law 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 per  cent  of
the  amount  of  such tax if the failure is for not more than one month,
with an additional five per cent for each additional month  or  fraction
thereof  during  which such failure continues, not exceeding twenty-five
per cent in the aggregate. For this purpose, 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.
(b) Deficiency due to negligence.--If any part of a deficiency is  due
to  negligence  or  intentional  disregard of this local law or rules or
regulations hereunder (but without intent to defraud),  there  shall  be
added to the tax an amount equal to five per cent of the deficiency.
(c)  Failure to file declaration or underpayment of estimated tax.--If
any taxpayer fails to file a declaration of estimated tax  or  fails  to
pay  all  or  any  part  of an installment of estimated tax, he shall be
deemed to have made an underpayment of estimated  tax.  There  shall  be
added  to  the tax for the taxable year an amount at the rate of six per
centum per annum upon the amount of the underpayment for the  period  of
the  underpayment  but  not beyond the fifteenth day of the fourth month
following the close of the taxable  year.  The  amount  of  underpayment
shall  be  the  excess  of  the amount of the installment which would be
required to be paid if the estimated tax were equal to seventy per  cent
of the tax (two-thirds of the tax for farmers referred to in subdivision
(e) of section thirty-five) shown on the return for the taxable year (or
if  no  return  was filed, of the tax for such year) over the amount, if
any, of the installment paid on or before the last  day  prescribed  for
such payment. No underpayment shall be deemed to exist with respect to a
declaration  or  installment  otherwise  due  on or after the taxpayer's
death.
(d) Exception to addition  for  underpayment  of  estimated  tax.--The
addition  to  tax under subdivision (c) with respect to any underpayment
of any installment shall not be imposed  if  the  total  amount  of  all
payments of estimated tax made on or before the last date prescribed for
the  payment  of  such  installment  equals  or exceeds whichever of the
following is the lesser--
(1) The amount which would have been required to be paid on or  before
such  date  if  the estimated tax were whichever of the following is the
least--
(A) The tax shown on the return of the individual  for  the  preceding
taxable  year,  if a return showing a liability for tax was filed by the
individual for the preceding taxable year and such preceding year was  a
taxable year of twelve months, or
(B)  An  amount  equal to the tax computed, at the rates applicable to
the taxable year, on the basis of the taxpayer's status with respect  to
personal  exemptions for the taxable year, but otherwise on the basis of
the facts shown on his return  for,  and  the  law  applicable  to,  the
preceding taxable year, or
(C)  An  amount  equal  to seventy per cent of the tax for the taxable
year (two-thirds of the tax for farmers referred to in  subdivision  (e)
of  section  thirty-five) computed by placing on an annualized basis the
taxable income for the months in the  taxable  year  ending  before  the
month  in  which the installment is required to be paid. For purposes of

this subparagraph, the taxable income shall be placed on  an  annualized
basis by--
(i)  multiplying  by twelve (or, in the case of a taxable year of less
than twelve months, the number  of  months  in  the  taxable  year)  the
taxable  income (computed without deduction for personal exemptions) for
the months in the taxable year ending before  the  month  in  which  the
installment is required to be paid,
(ii)  dividing  the  resulting  amount  by the number of months in the
taxable year ending before the month  in  which  such  installment  date
falls, and
(iii)   deducting   from  such  amount  the  deductions  for  personal
exemptions allowable for the  taxable  year  (such  personal  exemptions
being  determined  as  of  the  last  date prescribed for payment of the
installment); or
(2) An amount equal to ninety per cent of the  tax  computed,  at  the
rates applicable to the taxable year, on the basis of the actual taxable
income  for  the  months  in the taxable year ending before the month in
which the installment is required to be paid.
For  the  purposes  of  this  subdivision  the  amounts  specified  in
subparagraphs (B) and (C) of paragraph (1) and in paragraph (2) shall be
computed  without  regard to any increase in the rates applicable to the
taxable year unless such increase was enacted at least thirty days prior
to the time a declaration or amended declaration  of  estimated  tax  is
required to be filed for such taxable year.
(e)  Deficiency  due  to fraud.--If any part of a deficiency is due to
fraud, there shall be added to the tax an amount equal to fifty per cent
of the deficiency. This amount shall be in lieu of any other addition to
tax imposed by subdivision (a) or (b).
(f) Non-willful failure to  pay  withholding  tax.--If  any  employer,
without  intent  to evade or defeat any tax imposed by this local law or
the payment thereof, shall fail to make a return and pay a tax  withheld
by  him  at  the  time  required  by  or under the provisions of section
fifty-four, such employer shall be liable for such tax and shall pay the
same together with interest thereon and the addition to tax provided  in
subdivision  (a),  and  such  interest  and addition to tax shall not be
charged  to  or  collected  from  the  employee  by  the  employer.  The
administrator  shall  have the same rights and powers for the collection
of such tax, interest and addition to tax against such employer  as  are
now  prescribed  by  this  title  for  the  collection of tax against an
individual taxpayer.
(g) Willful failure to collect and pay over tax.--Any person  required
to collect, truthfully account for, and pay over the tax imposed by this
local  law who willfully fails to collect such tax or truthfully account
for and pay over such tax or willfully attempts in any manner  to  evade
or  defeat  the  tax or the payment thereof, shall, in addition to other
penalties provided by law, be liable to a penalty  equal  to  the  total
amount  of  the  tax  evaded, or not collected, or not accounted for and
paid over. No addition to tax under subdivisions (b)  or  (e)  shall  be
imposed for any offense to which this subdivision applies.
(h)  Failure  to  file  certain  information returns.--In case of each
failure to file a statement of a payment  to  another  person,  required
under  authority of subdivision (c) of section thirty-eight (relating to
information at source, including the duplicate statement of tax withheld
on wages) on the date prescribed therefor (determined with regard to any
extension of time for filing), unless it is shown that such  failure  is
due  to  reasonable  cause and not to willful neglect, there shall, upon
notice and demand by the administrator and in the same manner as tax, be
paid by the person so failing to file the statement, a  penalty  of  one

dollar  for each statement not so filed, but the total amount imposed on
the delinquent person for all such failures  during  any  calendar  year
shall not exceed one thousand dollars.
(i)  Additional  penalty.--Any person who with fraudulent intent shall
fail to pay, or to deduct or withhold and pay,  any  tax,  or  to  make,
render,  sign  or certify any return or declaration of estimated tax, or
to supply any information within the time  required  by  or  under  this
local  law,  shall  be liable to a penalty of not more than one thousand
dollars, in addition to any other amounts required under this local law,
to  be  imposed,  assessed  and  collected  by  the  administrator.  The
administrator  shall have the power, in his discretion, to waive, reduce
or compromise any penalty under this subdivision.
(j) Additions treated as tax.--The  additions  to  tax  and  penalties
provided  by this section shall be paid upon notice and demand and shall
be assessed, collected and paid in the same manner  as  taxes,  and  any
reference  in  this local law to income tax or tax imposed by this local
law, shall be deemed also to refer to the additions to tax and penalties
provided by this  section.  For  purposes  of  section  sixty-one,  this
subdivision shall not apply to--
(1)  any  addition  to  tax  under  subdivision  (a) except as to that
portion attributable to a deficiency;
(2) any addition to tax under subdivision (c); and
(3) any additional penalty under subdivision (i).
(k) Determination of deficiency.--For purposes of subdivisions (b) and
(e), the amount shown as the tax by the taxpayer upon his  return  shall
be  taken  into account in determining the amount of the deficiency only
if such return was filed on or before the last day  prescribed  for  the
filing  of  such return, determined with regard to any extension of time
for such filing.
(l) Person defined.--For purposes of subdivisions  (g)  and  (i),  the
term  "person"  includes an individual, corporation or partnership or an
officer  or  employee  of  any  corporation   (including   a   dissolved
corporation),  or  a  member or employee of any partnership, who as such
officer, employee, or member is under a  duty  to  perform  the  act  in
respect of which the violation occurs.