ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session

Majority Research Staff

House: WM DP 8-1-0-0|Third Read 42-15-3-0

Senate: FIN DPA 4-2-1-0 | Third Read 16-10-4-0

Final Read: 36-18-6-0

Chapter: 191

☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note

HB2016: tax returns; late filing; penalties

Sponsor: Representative Way, LD 15

Signed by the Governor

Overview

Beginning January 1, 2026, removes the penalty due to the Department of Revenue (DOR), for late-filing tax returns, if the tax amount shows zero due.

History

If a taxpayer fails or refuses to file a return on notice and demand by the Department of Revenue (DOR), the taxpayer shall pay a penalty — either $25 or 4.5% of the taxes due, whichever is greater —, which is due and payable on notice and demand by DOR, in addition to any penalty, unless it is shown that the failure is due to reasonable cause and not due to wilful neglect. This penalty is payable on notice and demand from DOR. (A.R.S. § 42-1125)

Provisions

1.   Prohibits a late filing penalty from being assessed on income tax returns if the taxpayer's liability is zero. (Sec. 1)

2.   Applies to taxable periods beginning January 1, 2026. (Sec. 2)

 

 

 

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Initials VP                       HB 2016

06/29/2026            Page 0 Signed by the Governor

 

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