N.Y. Tax Law § 1416 — Interest and civil penalties

§ 1416. Interest and civil penalties. (a) If the commissioner of\ntaxation and finance determines that there has been an overpayment of\ntax, interest at the overpayment rate set by the commissioner shall be\npaid by the comptroller to the grantor or grantee, on any refund paid\npursuant to the provisions of section fourteen hundred twelve of this\narticle. If the commissioner determines that there has been an\nunderpayment of tax, the grantor or grantee shall pay interest to the\ncommissioner at the underpayment rate set by the commissioner on the\namount of any tax not paid. The commissioner shall set the rates of\ninterest to be paid on underpayment and overpayment of the taxes imposed\nby this article at the underpayment and overpayment rates of interest\nprescribed in subsection (e) of section one thousand ninety-six of this\nchapter.\n (b) Any grantor or grantee failing to file a return or to pay any tax\nwithin the time required by this article shall be subject to a penalty\nof ten per centum of the amount of tax due plus an interest penalty of\ntwo per centum of such amount for each month of delay or fraction\nthereof after the expiration of the first month after such return was\nrequired to be filed or such tax became due, such interest penalty shall\nnot exceed twenty-five per centum in the aggregate. If the commissioner\nof taxation and finance determines that such failure or delay was due to\nreasonable cause and not due to willful neglect, the commissioner shall\nremit, abate or waive all of such penalty and such interest penalty.\n (c) If any amount of tax is not paid on or before the last date\nprescribed in section fourteen hundred ten of this chapter for payment,\ninterest at the underpayment rate set by the commissioner on such amount\nshall be paid for the period from such last date to the date paid. The\ncommissioner shall set the rate of interest to be paid at the\nunderpayment rate of interest prescribed in subsection (e) of section\none thousand ninety-six of this chapter. Interest under this subdivision\nshall not be paid if the amount thereof is less than one dollar.\n (d) The penalties and interest provided for in this section shall be\npaid to the commissioner of taxation and finance and shall be\ndetermined, assessed, collected and distributed in the same manner as\nthe tax imposed by this article and any reference to tax in this article\nshall be deemed to refer to the penalties and interest imposed in this\nsection.\n