TO AMEND THE PENALTIES IMPOSED FOR FAILURE TO COMPLY WITH THE ARKANSAS TAX PROCEDURE ACT.

House Bill 1904 proposed to amend the penalties for taxpayers who fail to comply with the Arkansas Tax Procedure Act. It aimed to reduce the maximum aggregate penalty for failing to file a required tax return from 35% to 10% of the tax due. The bill also sought to lower the maximum penalty for failing to pay various state taxes, including individual income tax, from 35% to 10% of the amount owed. These changes would have directly affected individuals and entities in Arkansas who do not meet tax filing or payment deadlines, provided the failure was not due to willful neglect.