TPT; reporting; penalty

HB 2818 amends Arizona's tax penalty rules to clarify and adjust civil penalties for tax non-compliance. It specifies penalties including 4.5% per month for late filings (capped at 25% of tax due), 25% for failing to file after notice, and $500 for frivolous returns. The bill directly affects Arizona taxpayers who miss deadlines, provide incomplete information, or file inaccurate returns. Key provisions include penalty calculations based on unpaid tax amounts, exceptions for reasonable cause (excluding willful neglect), and caps on total penalties (e.g., 25% combined for related failures). The changes apply to all taxes administered under Arizona's tax code.