Arizona Tax Amnesty Program Authorized

The Arizona Department of Revenue has been authorized to extend a tax amnesty program beginning May 1, 2009 and ending June 1, 2009 for Individual and Corporate Income, Transaction Privilege, Use, Withholding, Partnership, Fiduciary, and Luxury taxes. Eligible taxpayers who pay back taxes in full during this period will not be penalized or criminally prosecuted, and may qualify for a reduced interest rate. Amnesty is available for periods beginning on or after January 1, 2002 and ending before January 1, 2008 for taxes filed on an annual basis. For taxes filed on a quarterly basis, amnesty is available for periods beginning on or after January 1, 2003 and ending before January 1, 2008. To qualify, Amnesty Tax Returns must be accompanied by the Amnesty Application form and must be filed or postmarked and paid in full by June 1, 2009.

Individuals and businesses who failed to file a tax return, failed to report all income or all tax, interest and penalties due, claimed incorrect credits and deductions, or misrepresented or omitted tax due are eligible for the program, even if they are non-residents, part-year residents, or taxpayers under audit. Taxpayers who are seeking amnesty for finalized audit periods, are under criminal investigation, or are party to criminal proceedings for fraud, failure to file or failure to pay Arizona taxes are not eligible. (S.B. 1003, Laws 209, First Special Session, effective 90 days after adjournment)

Posted on April 1, 2009