SB 1274 - Tax Corrections Act of 2025

• Expands employee tax return preparation prohibition to include department of revenue agents, contractors, and their managers, with violations resulting in dismissal or removal from duties.

• Removes requirement that qualifying health care organizations file annual financial audits with the department under transaction privilege tax provisions.

• Corrects lottery ticket sales exemption reference from article 1 to article 2 of Title 5, Chapter 5.1.

• Modifies gambling winnings withholding to require withholding at the highest individual income tax rate instead of 20% of federal withholding amount.

• Amends partnership entity-level tax election procedures and federal audit adjustment provisions, including adding partnership section 6227 amended return adjustments, and makes these changes retroactive to taxable years beginning after December 31, 2021.