2023 New York Laws › TAX - Tax › Article 18 - Taxes on Alcoholic Beverages › 433 - Penalties and Interest.

§  433.  Penalties  and interest. 1. (a)(i) A distributor who or which
fails to file a return or to pay any tax 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  per
centum  of  the  amount  of tax determined to be due as provided in this
article plus one per centum of such amount for each  month  or  fraction
thereof  during which such failure continues after the expiration of the
first month after such return was required  to  be  filed  or  such  tax
became due, not exceeding thirty per centum in the aggregate.
(ii)  Any  other  person  who fails to file a return or to pay any tax
within the time required by or pursuant to this article, if such  person
does  not  offer alcoholic beverages for sale or use alcoholic beverages
for any commercial purpose, shall be subject to a penalty of  fifty  per
centum  of  the  amount  of tax determined to be due as provided in this
article plus one per centum of such amount for each  month  or  fraction
thereof  during which such failure continues after the expiration of the
first month after such return was required  to  be  filed  or  such  tax
become due.
(iii)  In  the  case  of a failure by a distributor or other person 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  penalties  imposed  by  this
subdivision  shall not be less than the lesser of one hundred dollars or
one hundred per centum 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.
(b) 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
underpayment rate set  by  the  commissioner  of  taxation  and  finance
pursuant  to subdivision twenty-sixth of section one hundred seventy-one
of this chapter 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 paragraph shall not be paid if the amount thereof is
less than one dollar.
(c)  If  the  tax  commission  determines that such failure was due to
reasonable cause and not due to willful neglect, it shall remit  all  or
part  of  such  penalties. The tax commission shall promulgate rules and
regulations as to what constitutes reasonable cause.
(d) If the failure to pay any tax  within  the  time  required  by  or
pursuant  to  this article is due to fraud, in lieu of the penalties and
interest provided for in paragraphs (a) and  (b)  of  this  subdivision,
there shall be added to the tax (i) a penalty of two times the amount of
tax  due, plus (ii) interest on such unpaid tax at the underpayment rate
set by the commissioner of taxation and finance pursuant to  subdivision
twenty-sixth  of section one hundred seventy-one of this chapter 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.
(e) The penalties and interest provided for in this subdivision  shall
be  determined,  assessed,  collected and paid in the same manner as the
taxes imposed by this article and shall be disposed  of  as  hereinafter
provided  with  respect to moneys derived from the tax. Unpaid penalties
and  interest  under  this  subdivision  may   be   recovered   by   the
attorney-general  in  an action brought pursuant to section four hundred

thirty-one of this article. Interest under  this  subdivision  shall  be
compounded daily.
2. For purposes of this chapter, the failure to do any act required by
or under the provisions of this article shall be deemed an act committed
in  part  at  the  office  of the department of taxation and finance, in
Albany. For the purposes of this chapter, the  certificate  of  the  tax
commission to the effect that a tax has not been paid, that a return has
not  been  filed, or that information has not been supplied, as required
by or under the  provisions  of  this  article,  shall  be  prima  facie
evidence  that such tax has not been paid, that such return has not been
filed, or that such information has not been supplied.
3. Cross-reference: For criminal penalties, see  article  thirty-seven
of this chapter.