United States

Arizona: Tax Recovery Program Commences September 1, 2016

Aug 29, 2016
From KPMG TaxWatch

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The Arizona Department of Revenue is holding a Tax Recovery Program (aka amnesty program) from September 1 through October 31. The program applies to corporate and personal income tax, use tax, and transaction privilege (sales) tax. Local transaction privilege taxes in non-program cities (i.e., in those cities which self-administer the local tax) are not covered under the program.  In addition to taxpayers that failed to file returns or pay all tax owed, tax recovery is available to taxpayers that have an existing liability for tax due and have received a notice from the Department. Taxpayers are ineligible for participation in the program if they are under audit and the audit is not yet final, are party to criminal proceedings involving the nonpayment of a tax, or have entered into a closing agreement with the Department for a tax period that included the periods covered under the program.

If tax recovery is granted, the Department will abate civil penalties and interest that could have been assessed. For annual filers, recovery is available for any tax year ending before January 1, 2014. For those taxpayers that file on a monthly or quarterly basis, recovery is available for any tax period ending before February 1, 2015.  The Department’s website has extensive information on the program and has a link to the tax recovery application that must be completed. Unlike Arizona’s 2015 tax recovery program, this amnesty program allows taxpayers to submit unpaid taxes over a period of three years, with the final payment occurring on or before October 31, 2018.  Please stay tuned to TWIST for more information on upcoming state amnesty programs!

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The following information is not intended to be "written advice concerning one or more federal tax matters" subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230.

The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser.