TITLE 44

Taxation

CHAPTER 44-30

Personal Income Tax

PART 44-30-81

Procedure and Administration

SECTION 44-30-85



   § 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.)