§ 1416. Interest and civil penalties. (a) If the commissioner of
taxation and finance determines that there has been an overpayment of
tax, interest at the overpayment rate set by the commissioner shall be
paid by the comptroller to the grantor or grantee, on any refund paid
pursuant to the provisions of section fourteen hundred twelve of this
article. If the commissioner determines that there has been an
underpayment of tax, the grantor or grantee shall pay interest to the
commissioner at the underpayment rate set by the commissioner on the
amount of any tax not paid. The commissioner shall set the rates of
interest to be paid on underpayment and overpayment of the taxes imposed
by this article at the underpayment and overpayment rates of interest
prescribed in subsection (e) of section one thousand ninety-six of this
chapter.

(b) Any grantor or grantee failing to file a return or to pay any tax
within the time required by this article shall be subject to a penalty
of ten per centum of the amount of tax due plus an interest penalty of
two per centum of such amount for each month of delay or fraction
thereof after the expiration of the first month after such return was
required to be filed or such tax became due, such interest penalty shall
not exceed twenty-five per centum in the aggregate. If the commissioner
of taxation and finance determines that such failure or delay was due to
reasonable cause and not due to willful neglect, the commissioner shall
remit, abate or waive all of such penalty and such interest penalty.

(c) If any amount of tax is not paid on or before the last date
prescribed in section fourteen hundred ten of this chapter for payment,
interest at the underpayment rate set by the commissioner on such amount
shall be paid for the period from such last date to the date paid. The
commissioner shall set the rate of interest to be paid at the
underpayment rate of interest prescribed in subsection (e) of section
one thousand ninety-six of this chapter. Interest under this subdivision
shall not be paid if the amount thereof is less than one dollar.

(d) The penalties and interest provided for in this section shall be
paid to the commissioner of taxation and finance and shall be
determined, assessed, collected and distributed in the same manner as
the tax imposed by this article and any reference to tax in this article
shall be deemed to refer to the penalties and interest imposed in this
section.