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Arizona Authorizes Tax Amnesty Program


Amnesty

Arizona has enacted legislation authorizing the Department of Revenue to establish a tax amnesty program applying to all state and local taxes administered by the Arizona Department of Revenue except estate and property tax. This amnesty does not cover home rule taxes administered by independent cities. The amnesty program will run from September 1 through October 1, 2011. The Department will waive all or part of the civil penalties and impose interest at a reduced rate for tax liabilities that have been assessed or could be assessed or imposed for any taxable period during the applicable liability period. For taxpayers who file annually, the liability period is any taxable period beginning from and after December 31, 2003 and ending before January 1, 2010. For taxpayers who have a 52-53 week tax year, it is any taxable period beginning from and after January 14, 2004 and ending before January 1, 2010. For all other taxpayers, it is any taxable period beginning from and after December 31, 2004 and ending before January 1, 2010. To qualify, taxpayers must submit an application in which they identify the tax, the qualifying taxable period, the tax liability for which recovery is sought, and provide other requested information, and pay the tax and interest due by October 1, 2011. A taxpayer does not qualify to participate in the program if an audit determination has become final for the tax period for which recovery is sought, if they are party to any criminal investigation or proceeding pending on January 1, 2011 for failure to file or pay or fraud relating to any Arizona tax, if they have been found guilty in a previous tax-related criminal investigation, if they’ve been convicted of a crime relating to any period or tax assessment that is the basis of the penalty or interest that is trying to be recovered, or if they are a party to a closing agreement with the department for the tax periods included in the recovery application. Approval to participate in the amnesty program does not entitle any affected taxpayer to a refund or credit of any amount previously paid. (S.B. 1616, Laws 2011, effective 90 days after adjournment)

(06/14/2011)
(New)
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