CHAPTER 345

FORMERLY

HOUSE BILL NO. 637

AN ACT TO AMEND SECTION 1194, CHAPTER 11, TITLE 30, DELAWARE CODE, RELATING TO FAILURE TO FILE RETURNS.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. The heading of Section 1194, Chapter 11, Title 30, Delaware Code, is amended to read as follows:

"§1194. Failure to File Tax Return Or to Pay Tax."

Section 2. Amend Subsection (a) of Section 1194, Chapter 11, Title 30, Delaware Code, by striking the figure "10%" each place it appears therein and substituting in lieu thereof the figure "5%".

Section 3. Amend Section 1194, Chapter 11, Title 30, Delaware Code, by redesignating Subsection (b) as Subsection (e), and by adding thereto new Subsections (b), (c), and (d) which shall read as follows:

"(b) In case of failure to pay the amount shown as tax on any return filed pursuant to this Chapter on or before the date prescribed for payment of such tax (determined with regard to any extension of time for payment), unless it is shown that such a failure is due to reasonable cause, there shall be added to the amount shown as tax on such return 0.5 percent for each additional month or fraction thereof during which such failure continues, not exceeding 25 percent in the aggregate. For purposes of computing the addition for any month, the amount of tax shown on the return shall be reduced by the amount of any part of the tax which is paid on or before the beginning of such month and by the month of any credit against the tax which may be claimed on the return.

(c)(1) If any partnership required to file a return under Section 1174 for any taxable year falls to file such return at the time prescribed therefor (determined with regard to any extension of time for filing) or files a return which falls to show the information required under Section 1174, such partnership shall be liable for a penalty determined under paragraph (2) below for each month or fraction thereof during which such failure continues (but not to exceed 5 months), unless it is shown that such failure was due to reasonable cause.

(2) For purposes of paragraph (1), the amount of penalty for any month is the product of $25.00, multiplied by the number of persons who were partners in the partnership during any part of the taxable year.

(3) The penalty shall be assessed against the partnership and the deficiency procedures provided in Section 1181 shall not apply.

(d) This Section shall not apply to any failure to file a declaration of estimated tax or to pay any estimated tax."

Section 4. This Act shall take effect on July 1, 1982.

Approved July 8, 1982.