N.Y. Tax Law § 433 — Penalties and interest

§ 433. Penalties and interest. 1. (a)(i) A distributor who or which\nfails to file a return or to pay any tax within the time required by or\npursuant to this article (determined with regard to any extension of\ntime for filing or paying) shall be subject to a penalty of ten per\ncentum of the amount of tax determined to be due as provided in this\narticle plus one per centum of such amount for each month or fraction\nthereof during which such failure continues after the expiration of the\nfirst month after such return was required to be filed or such tax\nbecame due, not exceeding thirty per centum in the aggregate.\n (ii) Any other person who fails to file a return or to pay any tax\nwithin the time required by or pursuant to this article, if such person\ndoes not offer alcoholic beverages for sale or use alcoholic beverages\nfor any commercial purpose, shall be subject to a penalty of fifty per\ncentum of the amount of tax determined to be due as provided in this\narticle plus one per centum of such amount for each month or fraction\nthereof during which such failure continues after the expiration of the\nfirst month after such return was required to be filed or such tax\nbecome due.\n (iii) In the case of a failure by a distributor or other person to\nfile such return within sixty days of the date prescribed for filing of\nsuch return by or pursuant to this article (determined with regard to\nany extension of time for filing), the penalties imposed by this\nsubdivision shall not be less than the lesser of one hundred dollars or\none hundred per centum of the amount required to be shown as tax on such\nreturn. For the purpose of the preceding sentence, the amount of tax\nrequired to be shown on the return shall be reduced by the amount of any\npart of the tax which is paid on or before the date prescribed for\npayment of the tax and by the amount of any credit against the tax which\nmay be claimed upon the return.\n (b) If any amount of tax is not paid on or before the last date\nprescribed in this article for payment, interest on such amount at the\nunderpayment rate set by the commissioner of taxation and finance\npursuant to subdivision twenty-sixth of section one hundred seventy-one\nof this chapter shall be paid for the period from such last date to the\ndate paid, whether or not any extension of time for payment was granted.\nInterest under this paragraph shall not be paid if the amount thereof is\nless than one dollar.\n (c) If the tax commission determines that such failure was due to\nreasonable cause and not due to willful neglect, it shall remit all or\npart of such penalties. The tax commission shall promulgate rules and\nregulations as to what constitutes reasonable cause.\n (d) If the failure to pay any tax within the time required by or\npursuant to this article is due to fraud, in lieu of the penalties and\ninterest provided for in paragraphs (a) and (b) of this subdivision,\nthere shall be added to the tax (i) a penalty of two times the amount of\ntax due, plus (ii) interest on such unpaid tax at the underpayment rate\nset by the commissioner of taxation and finance pursuant to subdivision\ntwenty-sixth of section one hundred seventy-one of this chapter for the\nperiod beginning on the last day prescribed by this article for the\npayment of such tax (determined without regard to any extension of time\nfor paying) and ending on the day on which such tax is paid.\n (e) The penalties and interest provided for in this subdivision shall\nbe determined, assessed, collected and paid in the same manner as the\ntaxes imposed by this article and shall be disposed of as hereinafter\nprovided with respect to moneys derived from the tax. Unpaid penalties\nand interest under this subdivision may be recovered by the\nattorney-general in an action brought pursuant to section four hundred\nthirty-one of this article. Interest under this subdivision shall be\ncompounded daily.\n 2. For purposes of this chapter, the failure to do any act required by\nor under the provisions of this article shall be deemed an act committed\nin part at the office of the department of taxation and finance, in\nAlbany. For the purposes of this chapter, the certificate of the tax\ncommission to the effect that a tax has not been paid, that a return has\nnot been filed, or that information has not been supplied, as required\nby or under the provisions of this article, shall be prima facie\nevidence that such tax has not been paid, that such return has not been\nfiled, or that such information has not been supplied.\n 3. Cross-reference: For criminal penalties, see article thirty-seven\nof this chapter.\n