This bill amends the penalties associated with failure to comply with state tax procedures in Arkansas. Specifically, it repeals the additional penalty for taxpayers who fail to make required quarterly estimated income tax payments, as outlined in Arkansas Code 26-18-208(6). The deleted provisions included a ten percent annual penalty for underestimating tax payments, which was applied on a quarterly basis, along with various exceptions to this penalty.

Additionally, the bill modifies Arkansas Code 26-65-107(d) to remove references to penalties and interest related to underpayment of estimated tax, aligning it with the repeal of the penalties in Section 1. The effective date for these changes is set for tax years beginning on or after January 1, 2023.

Statutes affected:
HB 1450: 26-18-208(6), 26-65-107(d)