Sec. 78.3. Failure to pay the tax due to fraud

Tax Law, § 481(1)(a)(iv)

(a) In lieu of the penalties described in section 78.1 and the interest described in section 78.5 of this Part, if the failure to pay any tax on or before the prescribed date for payment is attributable to fraud, the penalty and interest prescribed in section 481(1)(a)(iv) of the Tax Law will be added to the tax.

(b) The penalties and interest pursuant to this section shall be determined, assessed, collected and paid in the same manner as the taxes imposed by article 20 of the Tax Law. Provided however, such penalties and interest shall not be paid by the use of stamps.