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Depending on the nature of your violation, you may be looking at one or more of the following penalties: Suspension or termination of your license to sell OTP Accrual of interest and penalties (up to 20%) for nonpayment of OTP tax Additional penalties (up to 50%) for any false or fraudulent OTP tax return filing Misdemeanor criminal charges for falsification of a distributor license application Civil penalties range from $500 for a first offense up to $250,000 for willful misconduct

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