HB 1208 Summary

• Reduces the penalty for failure to pay state taxes by the due date from 10% to 5% if the full amount owed is paid within 30 days after the due date.

• Maintains the 10% penalty rate if payment is not made within 30 days of the due date.

• Applies to various tax violations including failure to file returns, failure to pay taxes shown on returns, negligent deficiencies, failure to remit trust taxes, and failure to make electronic funds transfers by the due date.

• Allows the Department of Revenue to waive penalties if a taxpayer demonstrates the failure was due to reasonable cause and not willful neglect, with requirements for written documentation under penalty of perjury.

• Becomes effective July 1, 2010.