HB2395 Summary

• Authorizes the Department of Taxation to require electronic filing of tax returns for certain taxpayers if an electronic filing option is provided and 90 days' prior notice is given to the public.

• Requires electronic filing for withholding tax employers with over $40,000 annual tax liability, general excise tax filers with over $4,000 annual liability, and transient accommodations tax operators with over $4,000 annual liability.

• Requires electronic filing for all taxpayers subject to taxes under chapters 236E, 239, 241, 243, 244D, 245, and 251.

• Imposes a 2% penalty on the tax amount for failure to electronically file when required, unless the failure is due to reasonable cause.

• Does not authorize the department to require individual taxpayers to electronically file income tax returns.