R63. Interest and Civil Penalties  

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  • A. Underpayment of Estimated Tax. Failure to have paid the required Municipal income tax liability by estimate in the fashion described in Section 311-63 shall subject the taxpayer to interest and penalties as set forth in Section 311-63.

    1) There can be no assessment for the underpayment of estimated tax for resident individuals that were not domiciled in the Municipality prior to January 1 of the taxable year.

    2) The interest and penalty assessment for underpayment of estimated tax is based on the lesser of the two methods of determining the total estimated tax described in Section 311-45.

    3) Payments will be applied as follows:

    A) Overpayments from prior years will be considered as payments made on the original due date of the return creating the overpayment provided the return was timely filed, including extensions, and the payments were received before the original due date of the return.

    B) Overpayments not meeting the criteria set forth above will be credited on the received date of the return creating the overpayment.

    C) Taxes withheld and remitted by the employer are normally considered paid evenly throughout the year.

    B. Additional Tax Assessments.

    1) Adjusted Return. No penalty will be assessed on the additional tax assessment made by the tax commissioner when the Municipal tax return was timely received and the additional tax and interest is paid within thirty (30) days of the tax commissioner's notice of adjustment.

    2) Federal Adjustment. No interest or penalty will be assessed on the additional tax assessment paid within three (3) months from the final determination of any federal tax liability.

    C. Appeals. A taxpayer shall have thirty (30) days after announcement of notice of any proposed imposition of interest and penalty within which to file a protest or explanation with the tax commissioner.

    1) If no protest or explanation is filed within the time prescribed, the proposed imposition of interest and penalty shall be updated and shall become and be the final assessment.

    2) Upon filing of a written protest or explanation, the tax commissioner shall determine the final assessment. For good cause shown by the taxpayer, the tax commissioner may recommend that the director of finance abate interest or penalty.