This bill proposes to amend current tax statutes by removing the penalty for late filing of tax returns when the tax amount due is zero. Specifically, it would eliminate the existing penalties outlined in ...the penalty imposed on a taxpayer that fails to make and file a return...is four and one-half percent of the tax required to be shown on the return, or $25, whichever is greater... and replace it with ...or the tax required to be shown on the return is zero. The bill also clarifies that the penalty will not apply if the tax amount is zero, thus providing relief to taxpayers who file late under these circumstances. Additionally, the bill includes a retroactive application clause, stating This act applies retroactively to taxable periods beginning from and after December 31, 2025.. This means that the changes would take effect for tax periods starting January 1, 2026, and would apply to any penalties assessed for late filings during that period if the tax due is zero.

Statutes affected:
Introduced Version: 42-1125