AR HB1904

Reduces the maximum aggregate penalty for failure to file any required state tax return from 35% to 10% of the tax owed

Lowers the maximum aggregate penalty for failure to pay taxes shown on returns (except individual income tax) from 35% to 10%

Decreases the maximum aggregate penalty for failure to pay individual income tax from 35% to 10%

Maintains the existing monthly penalty rates: 5% per month for failure to file, 5% per month for failure to pay non-individual taxes, and 1% per month for failure to pay individual income tax

Preserves the "reasonable cause" exception that waives penalties when taxpayers can demonstrate failure was not due to willful neglect