SB3722 Summary

• Reduces the late payment penalty from 20% to 15% for amounts paid after the Department of Revenue initiates an audit or investigation of a taxpayer.

• Allows abatement of the 15% penalty if the taxpayer paid at least 95% of the total tax liability (including any additional liability from the audit or investigation) prior to the audit or investigation initiation.

• Applies retroactively to the penalty calculation only; changes do not apply for determining penalty amounts assessed before the effective date.

• Effective January 1, 2021.