S.B. 1198 Summary

• Mandates electronic filing of tax returns for partnerships and S-corporations with gross income exceeding $250,000, individuals with federal adjusted gross income exceeding $100,000, and withholding tax employers with annual tax liability exceeding $40,000.

• Requires tax return preparers to file returns electronically if they prepare more than 10 returns of the same tax type in a calendar year, with a $50 penalty per return for non-compliance.

• Expands mandatory electronic funds transfer requirements to include all persons subject to mandatory electronic filing and establishes a 2% penalty for failure to use approved electronic payment methods.

• Removes the $5 fee for certified copies of tax clearances and authorizes limited disclosure of tax clearance information to liquor licensing agencies.

• Establishes specific interest rate schedules for overpayments in litigated tax appeals (3.0% to 4.0% depending on corporation size and taxpayer type) and expands permissible uses of the tax administration special fund to include criminal investigation and information technology operations.