S.B. 1198 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 individual taxpayers with federal adjusted gross income exceeding $100,000.

• Requires tax return preparers to electronically file returns if they reasonably expect to prepare more than ten returns of the same tax type in a calendar year, with a $50 penalty per failure for both the preparer and taxpayer.

• Requires electronic funds transfer for taxes for tax return preparers and any person subject to mandatory electronic filing, expanding beyond the current $100,000 tax liability threshold.

• Removes the authority to charge $5 for certified copies of tax clearances and authorizes the department to disclose limited tax information to liquor licensing agencies regarding applicant tax compliance.

• Establishes specific interest rates (3.0-4.0%) for overpayments paid from the litigated claims fund and expands the tax administration special fund to support information technology positions, criminal investigation operations, and the administrative rules office.