Title 42 — Taxation
14 chapters · 841 sections in this title.
A.R.S. § 42-1129 Payment of tax by electronic funds transfer
2.7K chars
A. The department may require by rule, consistent with the state treasurer's cash management policies, that any tax administered pursuant to this article, except for individual income tax or as required under section 42-3053, be paid on or before the payment date prescribed by la…
A.R.S. § 42-1130 Temporary tax relief for out-of-state employees and out-of-state businesses; disaster recovery; notice; definitions
4.1K chars
A. An out-of-state employee who is in this state on a temporary basis solely for the purpose of performing disaster recovery from a declared disaster during a disaster period is not required to file, remit, withhold or pay state or local income taxes for or during a disaster peri…
A.R.S. § 42-1131 Electronic signatures; definition
1.6K chars
B. An electronic signature must meet all of the following requirements: 1. Be executed or adopted by a person with the intent to sign the document so as to indicate the person's approval of the information contained in the document. 2. Be attached to or logically associated with …
A.R.S. § 42-1151 Lien
2.3K chars
A. If any tax, interest, penalty or other amount owed by the taxpayer to the department that the department is required to collect is not paid by a taxpayer when due, such unpaid amounts constitute a lien upon all property and rights to property, whether real or personal, belongi…
A.R.S. § 42-1152 Filing of lien; notice; recording
0.9K chars
A. The notice prescribed in section 42-1151, subsection B may be filed by the department against the taxpayer's real property located in any county by recording a notice of lien in the form prescribed by subsection C of this section in the office of the county recorder. B. The no…
A.R.S. § 42-1153 Release or subordination of lien
2.0K chars
A. The department, at any time, may release all or any portion of the property subject to the lien from the lien or subordinate the lien to other liens if it determines that either: 1. The taxes are sufficiently secured by a lien on other property of the taxpayer. 2. The release …
A.R.S. § 42-1154 Priority of tax claim
0.7K chars
A. The amounts required to be collected by the department, with interest and penalties, shall be satisfied first in any of the following cases: 1. If the person is insolvent. 2. If the person makes a voluntary assignment of assets. 3. If the estate of the person in the hands of e…
A.R.S. § 42-1155 Voluntary liens on property; security for delinquent taxes
0.3K chars
The department may accept voluntary liens on real or personal property pledged by any person as security for any tax which the department is required to collect which is not paid by a taxpayer when due. A voluntary lien shall be perfected and treated in all respects the same as a…
A.R.S. § 42-1201 Levy and distraint; definition
2.9K chars
A. If a person liable to pay any tax neglects or refuses to pay the tax, the department may collect the tax, interest, penalty, other amounts owed to the department and such other sums as are sufficient to cover the expenses of the levy, by levy upon: 1. All property and rights t…
A.R.S. § 42-1202 Surrender of property subject to levy; definition
4.0K chars
A. Except as otherwise provided in subsection B of this section, any person in possession of, or obligated with respect to, property or rights to property subject to levy upon which a levy has been made shall, upon demand of the department, surrender such property or rights to pr…
A.R.S. § 42-1203 Production of books
0.3K chars
If a levy has been made or is about to be made on any property, or right to property, any person having custody or control of any books or records containing evidence or statements relating to the property or right to property subject to levy shall, upon demand of the department,…
A.R.S. § 42-1204 Property exempt from levy
3.0K chars
A. The following property is exempt from levy: 1. Wearing apparel and school books as are necessary for the taxpayer or members of his family. 2. So much of the fuel, provisions, furniture, personal effects, arms for personal use, livestock and poultry as provided for in section …
A.R.S. § 42-1205 Notice and sale of seized property
1.0K chars
A. Except as otherwise provided in this section, the notice of sale and sale of property seized by the department under this article shall be conducted in the manner and the time provided in title 12, chapter 9, article 7, relating to the sale of property under execution. B. Real…
A.R.S. § 42-1206 Authority to release levy and return property
1.3K chars
A. The department may under prescribed rules release the levy upon all or part of the property or rights to property levied upon if the department determines that such action will facilitate the collection of the liability. Such release shall not operate to prevent any subsequent…
A.R.S. § 42-1207 Financial institutions data match; prohibited disclosure; civil liability; fee; definition
2.3K chars
A. The department may enter into agreements with financial institutions that conduct business in this state to develop and operate a data match system to assist the department in the collection of delinquent taxes, penalties and interest. The data match system shall use automated…
A.R.S. § 42-1251 Appeal to the department; hearing
3.3K chars
A. Except in the case of individual income taxes, a person from whom an amount is determined to be due under article 3 of this chapter may apply to the department by a petition in writing within forty-five days after the notice of a proposed assessment made pursuant to section 42…
A.R.S. § 42-1251.01 Appeals of suspension, revocation or refusal to renew liquor licenses; hearings; definition
1.8K chars
A. A suspension, revocation or refusal to renew a liquor license by the director of the department of liquor licenses and control pursuant to section 4-210, subsection A, paragraph 5 are considered a contested case. B. The aggrieved party may appeal the suspension, revocation or …
A.R.S. § 42-1252 State board of tax appeals
3.8K chars
A. The state board of tax appeals is established as an independent agency which shall not in any way be subject to the supervision or control of the department of revenue. The board shall have full power to hear and decide all appeals from decisions of the department of revenue. …
A.R.S. § 42-1253 Appeal to state board of tax appeals; definition
2.3K chars
A. Except for the provisions of section 42-1251, subsection B and section 42-1254, subsection C that provide for an option to bypass all or part of the administrative appeals process in certain tax disputes, a person aggrieved by a final decision or order of the department under …
A.R.S. § 42-1254 Appeal to tax court
3.7K chars
A. The department or a taxpayer aggrieved by a decision of the state board of tax appeals may bring an action in tax court. B. If the department is aggrieved by a decision of the board and the amount in dispute is less than five thousand dollars, the department may not bring an a…
A.R.S. § 42-1255 Burden of proof
0.9K chars
The department has the burden of proof by a preponderance of the evidence in any administrative or judicial proceeding regarding any factual issue that is relevant to ascertaining the tax liability of a taxpayer. This section does not abrogate any provision of this title or title…
A.R.S. § 42-1301 Designating military reuse zone; term; renewal
1.1K chars
A. After executing a lease with a term of fifteen years or longer for the use or occupancy of real property or improvements that are located on a closed military facility with a runway that is at least eight thousand feet long at closing or after title to any part of a closed mil…
A.R.S. § 42-1302 Tax incentives; conditions
1.3K chars
A. A prime contractor may qualify for an exemption from transaction privilege tax with respect to activities in a military reuse zone as provided, and subject to the terms and conditions prescribed, by section 42-5075, subsection B, paragraph 4. B. Taxable property in a military …
A.R.S. § 42-1303 Duties of department of revenue; annual report
1.0K chars
The department shall administer this article and shall: 1. Monitor the implementation and operation of this article and continually evaluate the progress made in the military reuse zone. 2. Assist an employer or prospective employer in a zone to obtain the benefits of any incenti…
A.R.S. § 42-2001 Definitions
2.9K chars
In this article, unless the context otherwise requires: 1. "Confidential information": (a) Includes the following information whether it concerns individual taxpayers or is aggregate information for specifically identified taxpayers: (i) Returns and reports filed with the departm…
A.R.S. § 42-2002 Disclosure of confidential information prohibited
1.1K chars
A. A person, including a former employee or agent of the department or the office of administrative hearings or a person previously having an administrative duty for the department or the office of administrative hearings, who has received confidential information while an employ…
A.R.S. § 42-2003 Authorized disclosure of confidential information
21.9K chars
A. Confidential information relating to: 1. A taxpayer may be disclosed to the taxpayer, its successor in interest or a designee of the taxpayer who is authorized in writing by the taxpayer. A principal corporate officer of a parent corporation may execute a written authorization…
A.R.S. § 42-2004 Violation; classification
0.2K chars
A disclosure of confidential information in violation of this article is a class 1 misdemeanor. A knowing disclosure of confidential information in violation of this article is a class 6 felony.
A.R.S. § 42-2051 Arizona taxpayer assistance office; taxpayer problem resolution officer; duties
2.5K chars
A. The Arizona taxpayer assistance office is established as an office in the department. The employees of the office shall be selected by the director. The manager of the taxpayer assistance office is the taxpayer problem resolution officer. The office reports directly to the dir…
A.R.S. § 42-2052 Erroneous advice or misleading statements by the department; abatement of penalties and interest; definitions
1.3K chars
A. Notwithstanding sections 42-1123 and 42-1125, no interest or penalty may be assessed on an amount assessed as a deficiency if either: 1. The deficiency assessed is directly attributable to erroneous written advice furnished to the taxpayer by an employee of the department acti…
A.R.S. § 42-2053 Procedures involving taxpayer interviews
1.3K chars
A. On the request of a taxpayer, and under circumstances prescribed by the department, an employee of the department, in connection with any interview with the taxpayer that relates to a deficiency in payment of any tax owed to the department, shall: 1. Conduct the interview in t…
A.R.S. § 42-2054 Disclosure of taxpayer information
0.2K chars
On the written request of a taxpayer, information relating to the taxpayer may be disclosed, if the disclosure does not violate article 1 of this chapter.
A.R.S. § 42-2055 Taxpayer assistance orders
1.6K chars
A. The problem resolution officer, with or without a formal written request from a taxpayer, may issue a taxpayer assistance order that suspends or stays an action or proposed action by the department if, in the problem resolution officer's determination, a taxpayer is suffering …
A.R.S. § 42-2056 Closing agreements in cases of extensive taxpayer misunderstanding or misapplication; attorney general approval; rules; definition
5.6K chars
A. If the department determines that noncompliance with tax obligations results from extensive misunderstanding or misapplication of provisions of this title or title 43 it may enter into closing agreements with those taxpayers under the following terms and conditions: 1. Extensi…
A.R.S. § 42-2057 Agreement for installment payments of tax
2.7K chars
A. The department may enter into an agreement with a taxpayer to allow the taxpayer to satisfy a liability for any tax by means of installment payments. The department may require a taxpayer who requests an installment payment agreement to complete a financial report in such form…
A.R.S. § 42-2058 Basis for evaluating employee performance
0.5K chars
A. The department shall establish procedures to monitor the performance of department employees that include, if applicable, using evaluations obtained from taxpayers. B. Fair and equitable treatment of taxpayers is a criterion for evaluating employee performance, including being…
A.R.S. § 42-2059 Additional audits or proposed assessments prohibited; exceptions
2.4K chars
A. When the department completes an audit or the findings of a managed audit are accepted by the director or approved on appeal and a deficiency has been completely determined under section 42-1108 or chapter 1, article 6 of this title, the taxpayer's liability for the particular…
A.R.S. § 42-2060 Refund if items of income transfer from one year to another
1.2K chars
A. Notwithstanding any statute of limitations provided in this title or title 43: 1. Any overpayment of taxes that is paid pursuant to title 43, that is due a taxpayer for any year and that results from a transfer of items of income or deductions, or both, to or from another year…
A.R.S. § 42-2061 Expedited review of jeopardy assessments
1.4K chars
A. Within thirty days after the day on which the department furnishes the written notice described in section 42-1111, subsection A, the taxpayer may request the department to review the action taken as provided in section 42-1251. Within fifteen days after the request for review…
A.R.S. § 42-2062 Abatement of penalties and fees; definition
1.1K chars
A. If a taxpayer has been assessed a penalty or fee pursuant to section 42-1107, 42-1125, 42-1126, 43-581 or 43-582, the department, on written application by the taxpayer, shall abate the penalty or fee if it determines that the conduct, or lack of conduct, that caused the asses…
A.R.S. § 42-2063 Department responsibilities; decision deadlines; definition
1.1K chars
A. The department shall attempt to issue a decision from the hearing officer within ninety days after the date of a formal hearing or after the last post-hearing brief is due, whichever is later. If the department expects the decision to be delayed, the department shall notify th…
A.R.S. § 42-2064 Reimbursement of fees and other costs; definitions
4.4K chars
A. A taxpayer who is a prevailing party may be reimbursed for reasonable fees and other costs related to an administrative proceeding that is brought by or against the department in connection with an assessment, determination, collection or refund of any tax listed in section 42…
A.R.S. § 42-2065 Abatement of interest for errors or delays caused by the department
0.8K chars
A. The director, in the director's discretion, may abate all or part of any assessment if additional interest has accrued on: 1. A deficiency due to any unreasonable error or delay by an officer or employee of the department acting in the employee's official capacity. 2. Any paym…
A.R.S. § 42-2066 Statute of limitations on tax debts
0.7K chars
A taxpayer's obligations for any tax, interest or penalty required to be collected by the department for any tax period are extinguished, if not previously satisfied, ten years after the amount of tax determined to be due becomes final unless one of the following circumstances ap…
A.R.S. § 42-2067 Limitation on the use of pseudonyms by department employees
0.4K chars
A. Employees of the department shall not use pseudonyms when interacting with the public unless the director or the director's designee first determines on written request that the use of the pseudonym is appropriate. The employee's request must include adequate justification for…
A.R.S. § 42-2068 Suspension of running of period of limitations during taxpayer disability
0.6K chars
A. Notwithstanding section 42-1106, the running of the statute of limitations for refunds is suspended if an individual, as defined in section 43-104, is financially disabled and eligible for equitable tolling of the statute of limitations for refunds under section 6511(h) of the…
A.R.S. § 42-2069 Taxpayer communications with practitioners; confidentiality; definitions
1.8K chars
A. With respect to tax advice, the same common law protections of confidentiality that apply to a communication between a taxpayer and an attorney also apply to a communication between a taxpayer and a federally authorized tax practitioner to the extent that the communication wou…
A.R.S. § 42-2070 Prohibited audit techniques
1.1K chars
The department shall not use financial status or economic reality examination techniques to determine the existence of unreported income of any taxpayer, except in the following circumstances: 1. The director may authorize the use of financial status or economic reality examinati…
A.R.S. § 42-2071 Reimbursement of bank costs caused by erroneous tax levies
0.6K chars
B. A taxpayer who claims reimbursement under this section shall file a claim with the department of revenue. The department of revenue shall transmit the claim to the department of administration where it shall be evaluated and paid, if verified, pursuant to title 41, chapter 3.1…
A.R.S. § 42-2072 Stay of enforcement actions pending offer in compromise
0.8K chars
A. A taxpayer who is unable to pay all of a liability may make an offer in compromise for abatement of part of the liability on the grounds that the remainder is uncollectible pursuant to section 42-1004, subsection B, paragraph 1. B. While the offer is under consideration by the…