This information is not current and is being provided for reference purposes only
Capital Gains, Dividends and Interest Income Tax Public Act 88-314
This TSSN is obsoleted by AN 94(2)
An Act Providing for Clarification and Uniformity in Penalties Imposed for Failure to File State Tax Returns and to Make Payments of State Taxes.
Public Act 88-314 is effective July 1, 1988 for any Capital Gains, Dividends & Interest Income Tax returns due for calendar years 1988 and after. The Act establishes penalties and provides for interest rates.
Penalties will be assessed according to the following criteria:
Late Filing Penalties:
A. Late Filing - $50 for filing a tax return late.
B. Late Payment - 10% of the amount due and unpaid for failure to remit the tax due in a timely manner.
Penalties are not compounded, therefore, only one of the above penalties will be imposed. In the case where a late return also results in a late payment, the penalty for late payment will be imposed.
Penalties for Audit Assessments:
A. Negligence - 10% of the underpayment when any part of the underpayment is due to negligence or intentional disregard of the law.
B. Fraud - 25% of the underpayment when any part of the underpayment is due to fraud or intent to evade the law.
The penalties for fraud and negligence resulting from an audit assessment cannot both be imposed.
Penalties for Criminal Offenses:
A. Willful Failure to File - A maximum fine of $1,000 or imprisonment up to one year, or both, when one willfully fails to file a return, pay a tax, keep records, or supply required information.
B. Filing A Fraudulent Return - A maximum fine of $4,000 or imprisonment from one to five years, or both, when one willfully delivers or discloses fraudulent or false information.
* Interest *
The amount of tax due and unpaid shall be charged interest at the rate of 1.25% per month, or fraction thereof, from the date the tax was due until full payment is made.