Title 15 . Revenue

Chapter 5 . (Repealed)

Section 210. Failure to file or pay

15 AAC 05.210. Failure to file or pay

(a) A failure-to-file penalty will be added to a tax at the rate of five percent for each 30-day period or fraction of a 30-day period during which the taxpayer fails to file at the time or times required by law or regulation a return or report as required by AS 43, unless it is shown that the failure is due to a reasonable cause, as defined in 15 AAC 05.200, and not to wilful neglect. A failure-to-file penalty will not exceed 25 percent for any one return or report required to be filed. The failure-to-file penalty is computed only on the unpaid balance of the tax liability as determined by the department. The penalty provided in AS 43.55.030 (d) will be assessed in addition to this penalty.

(b) A failure-to-pay penalty will be added to a tax at the rate of five percent for each 30-day period or fraction of a 30-day period during which the taxpayer fails to pay the full amount of the tax, a portion of the tax, or a deficiency of the tax, as required by AS 43, and as reported by the taxpayer or assessed by the department, unless it is shown that the failure is due to a reasonable cause, as defined in 15 AAC 05.200, and not to wilful neglect. The failure-to-pay penalty will not exceed 25 percent for any one return or report required to be filed. The failure-to-pay penalty is computed from the date the payment is due, on the unpaid balance of the total tax liability as shown on the return or report filed or on an audit assessment notice. The penalty provided for in AS 43.56.160 for failure to pay the tax under AS 43.56 is in place of the failure-to-pay penalty provided in this subsection.

(c) If, with respect to the same return or report, a failure to file and a failure to pay occur during different periods of time, a penalty for each period may be imposed. If a failure to file and a failure to pay occur during the same period of time, only the penalty for failure to file will be imposed for that period. The combined rate imposed under this section for the failure-to-file and the failure-to-pay penalties with respect to the same return or report will not exceed 25 percent.

(d) The obligation to file is separate from the obligation to pay. An approved extension to file is not an extension to pay.

(e) For purposes of calculating a penalty for failure to file or failure to pay, the first 30-day period or fraction of a 30-day period begins on the day following the day the obligation arises and ends when the obligation is met or 30 calendar days later, whichever occurs first. Each additional 30-day period or fraction of a 30-day period begins on the day following the expiration of the preceding period and ends when the obligation is met or 30 calendar days later, whichever occurs first. If the 30th calendar day is a holiday, it is excluded and the next business day is considered the 30th day.

(f) If a properly filed, amended return reduces the total tax liability or the tax required to be paid, or the department reduces the tax liability, the related penalty will be reduced accordingly. However, if the reduction results from the application of a carryback provision provided in AS 43, the penalties will not be reduced.

(g) If an additional penalty for negligence or intentional disregard is imposed under AS 43.05.220 (b), then a failure-to-pay penalty under this section will also be imposed on the total amount of the tax deficiency.

History: Eff. 7/1/81, Register 78; am 1/12/83, Register 85

Authority: AS 01.10.080

AS 01.10.220 (a)

AS 43.05.080