This bill proposes updates to section 42-1125 of the Arizona Revised Statutes regarding tax administration. Under current law, if a taxpayer fails to file a return by the due date, a penalty of four and one-half percent of the tax due is added for each month of delay, with a maximum penalty of twenty-five percent of the tax owed. The bill clarifies that if the amount required to be shown as tax is less than the amount reported, the penalty will be calculated using 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 the return is zero. This change aims to provide relief to taxpayers who do not owe any tax, thereby preventing unnecessary penalties in such cases.

Statutes affected:
Introduced Version: 42-1125