§ 39-29-115 — Penalties and interest

(1) Any person who fails to file a report or
to pay the tax due thereon shall pay a penalty of thirty percent of the tax assessed
or thirty dollars, whichever is greater, and the interest due under the provisions of
section 39-21-110.5.

(1.5) Any person who fails to withhold income and make a payment required
pursuant to section 39-29-111 shall pay a penalty of up to thirty percent of the
required payment or thirty dollars, whichever is the greater amount, and the
interest due under the provisions of section 39-21-110.5. Any person who withholds
income pursuant to section 39-29-111 and who fails to file the annual report
required by the rules promulgated by the department of revenue related to such
withholding shall pay a penalty of up to fifteen percent of the amount of
withholding that should have been reflected in the report or one thousand five
hundred dollars, whichever is the lesser amount. The penalty set forth in this
subsection (1.5) for failing to withhold income and make a payment shall not apply if
the income was from a well that qualified for the exemption set forth in section 39-29-105 (1)(b) for the prior taxable year.

(2) Tax assessed pursuant to an error contained on a previously filed return
which was due to negligence or disregard of the law shall have added thereto:

(a) A penalty of ten percent of the tax assessed; and

(b) Penalty interest of one-half of one percent per month, in addition to the
interest due under section 39-21-110.5, on the tax assessed.

(3) (a) Except as set forth in paragraph (b) of this subsection (3), if any
person fails, neglects, or refuses to file a report required by this article, the
executive director may, upon such information as may be available to him, estimate
the amount of tax due for the period for which no report was filed, with applicable
penalties and interest, and mail such estimate to the last-known address of such
person. The amount so estimated, together with the penalties and interest, shall
become fixed, due, and payable, as if such person had filed a report showing such
amounts unless, within ten days after receiving the estimate, such person files a
true and correct report for the period and pays the tax, penalty, and interest due
thereon.

(b) The executive director shall not send an estimate for a taxable year
pursuant to paragraph (a) of this subsection (3) to a person who has less than two
hundred fifty dollars withheld by all unit operators or first purchasers for the
taxable year pursuant to section 39-29-111 (1), unless the executive director has
good cause to believe that such person does not qualify for the exception to the
filing requirement set forth in section 39-29-112 (7).

(4) The executive director may waive, for good cause shown, any of the
penalties authorized by this section.

Legislative History

Source: L. 83: Entire section added, p. 1545, � 2, effective May 20. L. 85: (1) amended, p. 1263, � 26, effective January 1, 1986. L. 2010: (1.5) and (4) added, (HB 10-1060), ch. 277, p. 1269, � 1, effective September 1. L. 2012: (3) amended, (HB 12-1314), ch. 250, p. 1245, � 2, effective August 8.