DE HB142

Caps the penalty for failure to file a tax return at 50% of the tax amount owed, ending the previously unlimited accumulation of 5% monthly penalties

Increases the cap for fraudulent failure to file returns to 75% of the tax amount owed, with 15% monthly penalties instead of 5%

Applies to taxable periods beginning after December 31, 2012

Penalties still begin at 5% for the first month of non-filing (15% if fraudulent), with additional penalties for each subsequent month until the cap is reached