Vote Smart's Synopsis:

Vote to pass a bill that reduces the penalty for filing late income tax returns.

Highlights:

• Specifies that if a taxpayer received an extension for filing a municipal income tax return  than a tax administrator shall be prohibited from making any inquiry or sending any notice to a taxpayer regarding their tax return on or before the date they file the return, or before the extended due date to file the return, whichever occurs first (Sec. 1).

• Requires a tax administrator that violated the aforementioned provisions to reimburse the taxpayer for any reasonable cost incurred to respond to such inquiry or notice (Sec. 1).

• Establishes that these provisions shall not apply if the tax administrator has actual knowledge that the taxpayer failed to file for a federal extension as required (Sec. 1).

• Authorizes a municipal corporation to abate a refund for any penalty assessed on a taxpayer’s first failure to timely file a tax return (Sec. 1).