§ 44-30-85 - Additions to tax and civil penalties.
SECTION 44-30-85
§ 44-30-85 Additions to tax and civilpenalties. – (a) Failure to file tax returns or to pay tax. In the case of failure:
(1) To file the Rhode Island personal income tax return orthe employer's withheld tax return on or before the prescribed date, unless itis shown that the failure is due to reasonable cause and not due to willfulneglect, an addition to tax shall be made equal to five percent (5%) of the taxrequired to be reported if the failure is for not more than one month, with anadditional five percent (5%) for each additional month or fraction thereofduring which the failure continues, not exceeding twenty-five percent (25%) inthe aggregate. For this purpose, the amount of tax required to be reportedshall be reduced by an amount of the tax paid on or before the date prescribedfor payment and by the amount of any credit against the tax which may properlybe claimed upon the return;
(2) To pay the amount shown as tax on the personal income taxreturn or the employer's withheld tax return on or before the prescribed datefor payment of the tax (determined with regard to any extension of time forpayment) unless it is shown that the failure is due to reasonable cause and notdue to willful neglect, there shall be added to the amount shown as tax on thereturn five-tenths percent (0.5%) of the amount of the tax if the failure isfor not more than one month, with an additional five-tenths percent (0.5%) foreach additional month or fraction thereof during which the failure continues,not exceeding twenty-five percent (25%) in the aggregate; or
(3) To pay any amount in respect of any tax required to beshown on a return which is not so shown, including an assessment made as aresult of mathematical error, within ten (10) days of the date of the noticeand demand therefor, unless it is shown that the failure is due to reasonablecause and not due to willful neglect, there shall be added to the amount of taxstated in the notice and demand five-tenths percent (0.5%) of the amount of thetax if the failure is for not more than one month, with an additionalfive-tenths percent (0.5%) for each additional month or fraction thereof duringwhich the failure continues, not exceeding twenty-five percent (25%) in theaggregate.
(b) Negligence. If any part of a deficiency is due tonegligence or intentional disregard of the Rhode Island personal income tax lawor rules or regulations under this section (but without intent to defraud),five percent (5%) of that part of the deficiency shall be added to the tax.
(c) Fraud. If any part of a deficiency is due tofraud, fifty percent (50%) of that part of the deficiency shall be added to thetax. This amount shall be in lieu of any other additional amounts imposed bysubsections (a) and (b) of this section.
(d) Determination of deficiency. For purposes ofsubsections (b) and (c) of this section, the amount shown as the tax by thetaxpayer upon his or her return shall be taken into account in determining theamount of the deficiency only if the return was filed on or before the last dayprescribed for the filing of the return, determined with regard to anyextension of time for the filing.
(e) Failure to collect and pay over tax. Any personrequired to collect, truthfully account for, and pay over the Rhode Islandpersonal income tax who willfully fails to collect the tax or truthfullyaccount for and pay over the tax or willfully attempts in any manner to evadeor defeat the tax or the payment thereof, shall, in addition to other penaltiesprovided by law, be liable to a civil penalty equal to the total amount of thetax evaded, or not collected, or not accounted for and paid over.
(f) Failure to file certain information returns. Incase of each failure to file an information statement as required underauthority of § 44-30-58(c) in respect of payments to another person,unless it is shown that the failure is due to reasonable cause and not towillful neglect, the person failing to file the required statement shall, uponnotice and demand by the tax administrator made in the same manner as for tax,pay a civil penalty of one dollar ($1.00) for each statement not so filed, butthe total amount imposed on the delinquent person for all the failures duringany calendar year shall not exceed one thousand dollars ($1,000).
(g) Additions and penalties treated as tax. Theadditions to the tax and civil penalties provided by this section shall be paidupon notice and demand and shall be assessed, collected, and paid in the samemanner as taxes, except that any additional amount under subsection (a) of thissection, not attributable to a deficiency, may be assessed without regard tothe restrictions of § 44-30-81.
(h) Bad checks. If any check or money order in paymentof any amount receivable under this title is not duly paid, in addition to anyother penalties provided by law, there shall be paid as a penalty by the personwho tendered the check, upon notice and demand by the tax administrator or hisor her delegate, in the same manner as tax, an amount equal to one percent (1%)of the amount of the check, except that if the amount of the check is less thanfive hundred dollars ($500), the penalty under this section shall be fivedollars ($5.00). This subsection shall not apply if the person tendered thecheck in good faith and with reasonable cause to believe that it would be dulypaid.
(i) "Person" defined. As used in this section, theterm "person" includes an officer or employee of a corporation, including adissolved corporation, or a member or employee of a partnership, who as anofficer, employee, or member is under a duty to perform the act in respect ofwhich the violation occurs.