H.B. 2177 Summary

• Expands mandatory electronic filing requirements for tax returns to include partnerships with gross income exceeding $250,000, S corporations with gross income exceeding $250,000, and certain individual income taxpayers with federal adjusted gross income exceeding $100,000.

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

• Lowers the general excise tax and transient accommodations tax electronic filing thresholds from $4,000 to $2,000 in annual tax liability.

• Removes the authority to charge $5 for certified copies of tax clearances; clarifies that the department may disclose tax information to liquor licensing agencies regarding tax compliance.

• Increases the maximum late filing penalty from 25% to 75% of tax owed and adds a new $200-per-month penalty (up to 12 months) for late-filed partnership, estate, trust, and S corporation information returns where no tax is owed.

• Establishes tiered interest rates (3-4%) for taxes paid pending appeal based on taxpayer type and overpayment amount, replacing the prior federal rate reference.

• Requires partnerships, estates, and trusts to withhold and remit quarterly payments on nonresident distributive shares at the highest marginal nonresident tax rate.