State Mandated Changes to Penalty, Interest, Fees
Below is the breakdown of changes made to the City of Monroe’s Tax Ordinance in regards to Penalty, Interest, Fees and Charges in accordance with House Bill 5. This change affects Tax Year 2016 and beyond.
Section 887.10 Penalty, Interest, Fees and Charges
The Municipality shall impose on a taxpayer, employer, any agent of the employer, and any other payer, and will attempt to collect, the interest amounts and penalties prescribed in this section when the taxpayer, employer, any agent of the employer, or any other payer for any reason fails, in whole or in part, to make to the Municipality timely and full payment or remittance of income tax, estimated income tax, or withholding tax or to file timely with the Municipality any return required to be filed.
- Interest shall be imposed at the rate defined as “interest rate as described in division (A) of this section,” per annum, on all unpaid income tax, unpaid estimated income tax, and unpaid withholding tax. This imposition of interest shall be assessed per month, or fraction of a month.
- 2015: 1% per month
- 2016: 5% per year
- 2017: 6% per year
- 2018: 6% per year
- 2019: 7% per year
- 2020: 7% per year
- With respect to unpaid income tax and unpaid estimated income tax, a penalty equal to fifteen % of the amount not timely paid shall be imposed.
- 2015: 3% per month
- 2016 and beyond: 15% per month
- With respect to returns other than estimated income tax returns, the Municipality shall impose a monthly penalty of twenty-five dollars for each failure to timely file each return, regardless of the liability shown thereon for each month, or any fraction thereof, during which the return remains unfiled regardless of the liability shown thereon. The penalty shall not exceed a total of one hundred fifty dollars in assessed penalty for each failure to timely file a return.
- 2015: $50 flat fee
- 2016 and beyond: $25 per month, not to exceed $150
Definition of Return
"Return" includes any tax return, report, reconciliation, schedule, and other document required to be filed with a Tax Commissioner or municipal corporation by a taxpayer, employer, any agent of the employer, or any other payer pursuant to applicable law, including at any time before January 1, 2016.
To be considered completely filed, you must submit your signed returned along with page one of your federal 1040 and any W-2's or schedules you may have.