SB2260 Summary

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

• Abates the 15% penalty entirely 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 Uniform Penalty and Interest Act for returns due on and after January 1, 2005.

• Effective January 1, 2022, with no application to penalties assessed prior to the effective date.