Bill > HB1904

This bill amends the Arkansas Tax Procedure Act to reduce the maximum penalty for failing to file tax returns or pay taxes from 35% to 10% of the total tax owed. Specifically, the bill modifies penalties for both individual and non-individual tax returns, lowering the incremental monthly penalty rate. For non-individual tax returns, the penalty remains 5% per month for failing to file or pay taxes, but the total maximum penalty is reduced from 35% to 10%. For individual income tax returns, the penalty is adjusted from 5% to 1% per month, also with a maximum of 10% instead of the previous 35%. The bill maintains the existing provisions that prevent double-penalizing taxpayers for the same missed filing or payment, and it continues to allow for reasonable cause exceptions to these penalties. This change could potentially provide some relief to taxpayers who are late in filing or paying their taxes, by significantly reducing the total potential penalty they might incur.

Budget and Finance

https://arkleg.state.ar.us/Bills/Detail?id=hb1904&ddBienniumSession=2025%2F2025R