For Immediate Release: For more information contact: Feb. 19, 2019 Rep. Crystal Quade at (573) 751-3795

Rep. Quade files legislation to ease impact of surprise tax bills

House Bill 963 seeks to waive penalties for taxpayers on payment plans

JEFFERSON CITY, Mo. – As part of continuing efforts by House Democrats to protect Missourians who are facing surprise income tax bills this year, House Minority Leader Crystal Quade, D-Springfield, today filed legislation that would require the Missouri Department of Revenue to waive penalties and fees for certain taxpayers who enter into a payment plan with the agency.

Under House Bill 963, which Quade filed on Monday, taxpayers who file their 2018 state tax returns on time and comply in good faith with a payment plan negotiated with the revenue department would only have to pay outstanding taxes owed and not bear the added burden of penalties and late fees.

“Through no fault of their own, countless Missouri taxpayers are being hit with surprise tax bills that many won’t be able to pay on time,” Quade said. “It would be grossly unfair to stick these taxpayers with penalties and fees for a situation that was well beyond their control.”

Due to a combination of incorrect tax withholding tables the revenue department provided to businesses and changes in federal tax laws championed by the Trump administration, many Missouri taxpayers had insufficient taxes withheld from their paychecks last year. Although the revenue department has denied repeated requests to issue an official estimate, it is believed that hundreds of thousands of Missouri taxpayers are affected.

Quade previously had filed House Bill 378 to allow any taxpayer who files their 2018 tax return on time and owes outstanding taxes of less than $200 to get an extension to pay that bill no later than June 15, two months past the usual deadline.

HB 963 takes a more targeted approach by applying only to taxpayers who are unable to pay their unexpected tax bill by April 15. As with her earlier bill, HB 963 contains an emergency clause so that it would take effect immediately upon being signed into law by the governor.

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