HB 2818 — TPT; reporting; penalty

Bill Text

• Introduced Introduced Version Current pdf

AI-generated reading aid from the bill's amendatory text — verify against the official bill.

The bill amends penalties related to tax filing and payment failures by altering the structure and definitions of penalties in existing law.

• 42-1125

  If a taxpayer fails to make and file a return for a tax administered pursuant to this article on or before the due date of the return or the due date as extended by the department, unless it is shown that the failure is due to reasonable cause and not due to wilful neglect, four and one-half percent of the tax required to be shown on the return shall be added to the tax for each month or fraction of a month elapsing between the due date of the return and the date on which it is filed. → If a taxpayer fails to make and file a return for a tax administered pursuant to this article on or before the due date of the return or the due date as extended by the department, unless it is shown that the failure is due to reasonable cause and not due to wilful neglect, a penalty of four and one-half percent of the tax required to be shown on the return shall be added to the tax for each month or fraction of a month elapsing between the due date of the return and the date on which it is filed.

  This change rephrases the penalty for failing to file a tax return while preserving the same numerical penalties.

• 42-1125

  The total penalty shall not exceed twenty-five percent of the tax found to be remaining due. → The total penalty shall not exceed twenty-five percent of the tax found to be remaining due, except as provided in subsection D of this section.

  This ensures that the twenty-five percent upper limit applies unless specific exceptions are invoked.

• 42-1125

  A penalty of twenty-five percent of the tax, which is due and payable on notice and demand by the department, in addition to any penalty prescribed by subsection A of this section, unless it is shown that the failure is due to reasonable cause and not due to wilful neglect. → A penalty of twenty-five percent of the tax, which is due and payable on notice and demand by the department, as a separate penalty in addition to any penalty prescribed by subsection A of this section, unless it is shown that the failure is due to reasonable cause and not due to wilful neglect.

  This clarifies that the twenty-five percent penalty is applied separately from those in subsection A.

• 42-1125

  the department may add a penalty of twenty-five percent of the amount of any deficiency tax assessed by the department concerning the assessment of which the information was required, unless it is shown that the failure is due to reasonable cause and not due to wilful neglect. → the department may assess a penalty of twenty-five percent of the amount of any deficiency tax assessed by the department regarding the information required, unless it is shown that the failure is due to reasonable cause and not due to wilful neglect.

  This modifies the wording surrounding penalties related to information requests by the department.

• 42-1125

  If the taxpayer is also subject to a penalty under subsection A of this section for the same tax period, the total penalties under subsection A of this section and this subsection shall not exceed twenty-five percent. → If the taxpayer is also subject to a penalty under subsection A of this section for the same tax period, the total penalties under subsections A and D shall be reconciled so that the total does not exceed twenty-five percent.

  This adjustment clarifies how the total penalties from different subsections are combined.

Action History

1. February 13, 2025

   House Second Reading

2. February 12, 2025

   House First Reading.

Sponsors

• Stephanie Simacek · Primary

Subjects