Arizona HB2016: tax returns; late filing; penalties

What the bill says

An act amending section 42-1125, Arizona Revised Statutes; relating to tax administration. Section [DELETED: 1.] 1. Section 42-1125, Arizona Revised Statutes, is amended to definition A. If a taxpayer fails to make and file a return for a tax administered pursuant to this article on or before the due date of the return or the due date as extended by the department, unless it is shown that the failure is due to reasonable cause and not due to wilful neglect, four and one-half percent of the tax required to be shown on the return shall be added to the tax for e.

From the chaptered text, June 29, 2026:

AN ACT amending section 42-1125, Arizona Revised Statutes; relating to tax administration. (TEXT OF BILL BEGINS ON NEXT PAGE) Section [DELETED: 1.] 1. Section 42-1125, Arizona Revised Statutes, is amended to definition A. If a taxpayer fails to make and file a return for a tax administered pursuant to this article on or before the due date of the return or the due date as extended by the department, unless it is shown that the failure is due to reasonable cause and not due to wilful neglect, four and one-half percent of the tax required to be shown on the return shall be added to the tax for each month or fraction of a month elapsing between the due date of the return and the date on which it is filed. The total penalty shall not exceed twenty-five percent of the tax found to be remaining due. The penalty so added to the tax is due and payable on notice and demand from the department. For the purpose of computing the penalty imposed under this subsection, the amount required to be shown as tax on a return shall be reduced by the amount of any part of the tax that is paid on or before the beginning of the month and by the amount of any credit against the tax …

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Sponsors

• Michael Way (R, HD-015) · primary sponsor