§ 44-30-85. Additions to tax and civil penalties. (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 or the employer's withheld tax return on or before the prescribed date, unless it is shown that the failure is due to reasonable cause and not due to willful neglect, an addition to tax shall be made equal to five percent (5%) of the tax required to be reported if the failure is for not more than one month, with an additional five percent (5%) for each additional month or fraction thereof during which the failure continues, not exceeding twenty-five percent (25%) in the aggregate. For this purpose, the amount of tax required to be reported shall be reduced by an amount of the tax paid on or before the date prescribed for payment and by the amount of any credit against the tax which may properly be claimed upon the return;

(2) To pay the amount shown as tax on the personal income tax return or the employer's withheld tax return on or before the prescribed date for payment of the tax (determined with regard to any extension of time for payment) unless it is shown that the failure is due to reasonable cause and not due to willful neglect, there shall be added to the amount shown as tax on the return five-tenths percent (0.5%) of the amount of the tax if the failure is for not more than one month, with an additional five-tenths percent (0.5%) for each 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 be shown on a return which is not so shown, including an assessment made as a result of mathematical error, within ten (10) days of the date of the notice and demand therefor, unless it is shown that the failure is due to reasonable cause and not due to willful neglect, there shall be added to the amount of tax stated in the notice and demand five-tenths percent (0.5%) of the amount of the tax if the failure is for not more than one month, with an additional five-tenths percent (0.5%) for each additional month or fraction thereof during which the failure continues, not exceeding twenty-five percent (25%) in the aggregate.

(b) Negligence. If any part of a deficiency is due to negligence or intentional disregard of the Rhode Island personal income tax law or 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 to fraud, fifty percent (50%) of that part of the deficiency shall be added to the tax. This amount shall be in lieu of any other additional amounts imposed by subsections (a) and (b) of this section.

(d) Determination of deficiency. For purposes of subsections (b) and (c) of this section, the amount shown as the tax by the taxpayer upon his or her return shall be taken into account in determining the amount of the deficiency only if the return was filed on or before the last day prescribed for the filing of the return, determined with regard to any extension of time for the filing.

(e) Failure to collect and pay over tax. Any person required to collect, truthfully account for, and pay over the Rhode Island personal income tax who willfully fails to collect the tax or truthfully account for and pay over the tax or willfully attempts in any manner to evade or defeat the tax or the payment thereof, shall, in addition to other penalties provided by law, be liable to a civil penalty equal to the total amount of the tax evaded, or not collected, or not accounted for and paid over.

(f) Failure to file certain information returns. In case of each failure to file an information statement as required under authority 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 to willful neglect, the person failing to file the required statement shall, upon notice 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, but the total amount imposed on the delinquent person for all the failures during any calendar year shall not exceed one thousand dollars ($1,000).

(g) Additions and penalties treated as tax. The additions to the tax and civil penalties provided by this section shall be paid upon notice and demand and shall be assessed, collected, and paid in the same manner as taxes, except that any additional amount under subsection (a) of this section, not attributable to a deficiency, may be assessed without regard to the restrictions of § 44-30-81.

(h) Bad checks. If any check or money order in payment of any amount receivable under this title is not duly paid, in addition to any other penalties provided by law, there shall be paid as a penalty by the person who tendered the check, upon notice and demand by the tax administrator or his or 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 than five hundred dollars ($500), the penalty under this section shall be five dollars ($5.00). This subsection shall not apply if the person tendered the check in good faith and with reasonable cause to believe that it would be duly paid.

(i) "Person'' defined. As used in this section, the term "person" includes an officer or employee of a corporation, including a dissolved corporation, or a member or employee of a partnership, who as an officer, employee, or member is under a duty to perform the act in respect of which the violation occurs.

History of Section. (P.L. 1971, ch. 8, art. 1, § 1; P.L. 2009, ch. 68, art. 16, § 7.)