Guest post by: Giselle C. Alexander*, J.D., LL.M., C.P.A.
Taxpayers have an opportunity to resolve delinquent taxes with the Arizona Department of Revenue and receive the benefit of penalty and interest abatement. The recovery period is brief, so taxpayers should act quickly to determine their eligibility.
The time period for submission of Tax Recovery Applications and payment began September 1, 2015.
All applications and payments must be made by November 2, 2015.
Eligible taxes include: individual income taxes, corporate income taxes, transaction privilege taxes, and use taxes. For taxes due on an annual basis, tax recovery may be requested for any tax year ending prior to January 1, 2014 (i.e. 2013 tax year and earlier). For taxes due on a basis other than annual, such as monthly or quarterly, tax recovery may be requested for any tax period ending prior to February 1, 2015.
Eligible taxpayers include both individuals and businesses. Taxpayers who have previously failed to report income and/or tax; taxpayers with an existing liability for tax due and who have received a bill or notice, and taxpayers under audit, but whose audit has not become final are all eligible. Taxpayers are not eligible if they are a party to a criminal proceeding for failure to file, failure to pay, or fraud with respect to any tax collected by the Arizona Department of Revenue; have previously been the subject of a tax-related criminal investigation, indictment, or prosecution resulting in a conviction, guilty plea, or plea of no contest; have been convicted of a crime relating to any tax period for which amnesty is requested; or is a party to a closing agreement for the tax periods for which amnesty is requested.
If the taxpayer is granted amnesty, the Department of Revenue will waive or abate civil penalties and interest that were assessed or could have been assessed for the periods covered by the application. Also, no civil, administrative, or criminal actions will be brought against the taxpayer for the recovery application periods.
The Arizona Tax Recovery program is here for a limited time only!
Every tax problem is unique and taxpayers should consult with their tax professionals to determine their eligibility. This article is for informational purposes only and does not constitute legal advice.
*Giselle is a Phoenix-area attorney practicing with Frazer Ryan Goldberg & Arnold, L.L.P. Giselle’s practice is limited to taxation issues. She can be reached at 602.200.7325 or galexander@frgalaw.com.
