SB2906 Summary

• Reduces the penalty for failure to pay tax from 20% to 15% for amounts paid after the Department of Revenue initiates an audit or investigation of the taxpayer.

• Abates the 15% penalty if the taxpayer paid at least 95% of the total tax liability (including additional liability from the audit or investigation) before the audit or investigation was initiated.

• Applies to returns due on and after January 1, 2005 under subsection (b-20) of Section 3-3 of the Uniform Penalty and Interest Act.

• Provides that penalty changes under this act do not apply to penalties assessed before the January 1, 2021 effective date.

• Takes effect January 1, 2021.