This bill proposes updates to section 42-1125 of the Arizona Revised Statutes regarding tax administration. It maintains the current penalty structure for taxpayers who fail to file returns on time, which includes a penalty of four and one-half percent of the tax due for each month of delay, capped at twenty-five percent of the total tax owed. However, it clarifies that if the amount required to be shown as tax is less than the amount reported, the penalty will be calculated based on the lower amount.

Additionally, the bill introduces a new provision stating that the department cannot impose penalties on taxpayers if the amount of tax due on their return is zero. This change aims to alleviate the burden on taxpayers who do not owe any tax, ensuring that they are not penalized for failing to file a return when no tax is due.

Statutes affected:
Introduced Version: 42-1125