A. Investigations by Tax Administrator

1.The Administrator, or his duly authorized agent, is authorized to examine the books, papers, records and Federal income tax returns of any Employer, Taxpayer or Person subject to the Ordinance, or whom the Administrator believes is subject to the provisions of the Ordinance, for the purpose of verifying the accuracy of any return made; or, if no return was made, to ascertain the tax due under the Ordinance.

2. An Employer or supposed Employer and every Taxpayer shall furnish, within ten (10) days following a written request by the Administrator or his duly authorized agent, the means, facilities and opportunity for making examinations and investigations authorized by the Ordinance.

B. Subpoena of Records and Persons

1. The Administrator, or any person acting in his capacity, is authorized to examine any person, under oath, concerning any income which was, or should have been, returned for taxation, or any transaction tending to affect such income. The Administrator may compel the production of books, papers and records and the attendance of all persons before him whether as parties or witnesses, whenever he believes such persons have knowledge of the facts concerning any supposed income or supposed transaction of the Taxpayer.

2. The Administrator's order to examine any document mentioned in the preceding paragraph shall state whether the examination is to be at the office of the Taxpayer or at the office of the Administrator.

3. The Administrator may order the appearance before him, or his duly authorized agent, of any party whom he believes to have any knowledge of a Taxpayer's income or withholdings, or any information pertaining to the Taxpayer under investigation, whether or not the individual so ordered has actual custody of the records of the Taxpayer being investigated. The Administrator is specifically authorized to order the appearance of the local manager or representative of any Taxpayer.

4. Persons required to attend any hearings shall be notified not less than ten (10) days prior to the time of the hearing. The notice shall show the time and place of the hearing and what books, papers or records the witness is to make available at such hearing.

5.The notice shall be served by the Administrator, or his duly authorized agent, by delivering it to the person named personally, or by leaving the notice at his usual Place of Business or residence, or by mailing it to the person by registered mail, return receipt requested, addressed to his usual Place of Business or residence.

C. Penalty for Non-Compliance

Refusal by any Employer, supposed Employer, Taxpayer, or supposed Taxpayer, or the refusal of any such person to appear before the Administrator or his duly authorized agent, to submit to such examination and ot produce the records requested constitutes a misdemeanor punishable by fine or imprisonment, or both, as prescribed by Section 12 of the Ordinance.

D. Confidential Nature of Examinations

Any information gained as a result of any returns, investigations, verifications or hearing before the Administrator or the Board, required by the Ordinance or authorized by these rules and regulations shall be confidential and no disclosure thereof shall be made except for official purposes or as ordered by a court of competent jurisdiction. Any person divulging such information in violation of this section shall be fined not more than One Thousand ($1,000) Dollars and imprisoned not more than six (6) months or both, for each offense. In addition to the above penalty, any employee of the Municipality who violates the provisions of this section relative to the disclosure of confidential information shall be guilty of an offense punishable by immediate dismissal.

E. Retention of Records

All Employers and Taxpayers are required to keep such records as will enable the filing of true and accurate returns whether of taxes withheld at the source or of taxes payable upon earning or Net Profits, or both. Such records shall be preserved for a period of not less than five (5) years from the date the final return is filed and paid or the withholding taxes are paid.

A. Interest

1. Except as provided in paragraph C of this article, all taxes imposed and all monies withheld or required to be withheld by Employers under the provisions of this Ordinance and remaining unpaid after they have become due shall bear interest, in addition to the amount of the unpaid tax or withholdings, at the rate of one percent (1%) per month or fraction thereof.

B. Penalties

In addition to interest as provided in Paragraph A hereof, penalties for failure to pay taxes and to withhold and remit taxes pursuant to the provisions of the Ordinance are hereby imposed as follows:

1. In the Case of Taxpayers failing to pay the full amount of the tax due, the penalty of the higher of:

a. Twenty-five ($25) dollars, or,

b. One percent per month, or a fraction thereof, of the amount of the unpaid tax, if the tax is paid during the first six months after said tax became due; a penalty of two percent per month, or fraction thereof, of the unpaid tax if said tax is paid later than six (6) months after it became due.

2. In the case of employers who fail to withhold and remit to the Administrator the taxes to be withheld from employees, a penalty of the higher of:

a. Fifty ($50) dollars, or,

b. Five percent per month, or a fraction thereof, of the unpaid withholding, if the withholding paid during the first six (6) months after said withholding was due; and a penalty of ten percent per month, or a fraction thereof of the unpaid withholding, if the withholding is paid later than six (6) months after it was due.

3. In the case of a taxpayer failing to file his/her return when due, said taxpayer shall be required to pay a late filing penalty of twenty-five dollars ($25.00). Provided, however, the administrator may suspend the late filing penalty for any taxpayer who is filing a Massillon return for the first time or whose sole source(s) of income is comprised of ADC, general welfare, unemployment or workmen's compensation payments or who has no income whatsoever. Said suspended penalty shall be re-instated if the taxpayer fails to file his/her return in a timely manner for the tax year following the year said suspension was granted. (10/90)

C. Exceptions

1. No penalty shall be assessed on additional taxes found on audit to be due when a return was timely filed in good faith and the tax paid thereon within the time prescribed by the Administrator.

2. In the absence of fraud, neither penalty nor interest shall be assessed on any additional taxes resulting from a Federal audit for Federal income tax purposes provided an amended return is filed and the additional tax paid within three (3) months after final determination of the Federal tax liability.

3. A Taxpayer or Employer shall have thirty (30) days after receipt of notice of any proposed imposition of interest and penalties within which to file a written protest or explanation with the Administrator. If no protest or explanation is filed within the prescribed time, the proposed imposition of interest and penalties shall become and be the final assessment. Upon filing of a written protest or explanation, the Administrator shall determine the assessment which may or may not be the same as the proposed assessment.

D. Appeal from Assessment

1. Upon recommendation of the Administrator, the Board of Review may abate penalty or interest, or both, or upon an appeal from the refusal of the Administrator to recommend abatement of penalty and interest, the Board may nevertheless abate penalty or interest, or both.