HB2875 is a bill that amends the Arizona Revised Statutes relating to tax administration, specifically regarding the timeliness of electronic payments for taxes. The bill specifies that an electronic payment is considered to have been made at the date and time the taxpayer successfully authorizes an electronic funds transfer (EFT) from their financial institution to the Arizona Department of Revenue (ADOR). This is evidenced by an electronic payment confirmation issued by ADOR, the taxpayer's financial institution, or a vendor certified by ADOR.

The bill also allows ADOR to abate penalties for late electronic payments until December 31, 2024, if the taxpayer can provide reasonable evidence of a successful and timely EFT authorization. Additionally, ADOR is exempt from the rulemaking requirements for one year after the effective date of the act. This bill aims to provide clarity on the timing of electronic tax payments and offers taxpayers a means to avoid penalties for late payments if they can demonstrate timely authorization of their EFTs.

Statutes affected:
Introduced Version: 42-1129
House Engrossed Version: 42-1129
Chaptered Version: 42-1129