reglab/statecodes huggingface dataset:
2023 Arizona Revised Statutes › Title 42 - Taxation › § 42-1253 - Appeal to state board of tax appeals; definition

42-1253.
Appeal to state board of tax appeals;  definition
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 section 42-1251,  article 3 of this chapter or section 42-2065,  42-2068,  42-2069,  42-2074,  42-2201 or 42-2202 may appeal to the state board of tax appeals by filing a notice of appeal in writing within thirty days after the decision or order from which the appeal is taken has become final.
B. The board shall take testimony and examine documentary evidence as necessary to determine the appeal,  all pursuant to administrative rules to govern such appeals.
C. On determining the appeal the board shall issue a decision consistent with its determination. The board's decision is final on the expiration of thirty days from the date when notice of its action is received by the taxpayer,  unless either the department or the taxpayer brings an action in tax court as provided in section 42-1254.
D. If the amount in any single dispute before the board is less than twenty-five thousand dollars,  a taxpayer may be represented in that dispute before the board by:
1. A certified public accountant.
2. A person who is enrolled to practice before the United States internal revenue service and is recognized as an enrolled agent.
3. Any other person who is authorized by the taxpayer under a properly executed power of attorney and who was previously or is currently retained by the taxpayer for purposes other than representation in a hearing before the board.
E. If a practitioner who represents a taxpayer before the board pursuant to subsection D of this section fails to comply with an order or rule of the board,  the board may impose sanctions including one or both of the following:
1. Order that the stipulation of the facts proposed by the department of revenue be accepted.
2. Suspend the practitioner from further practice before the board either for a specific period of time or until the board removes the suspension.
F. For the purposes of this section,  " practitioner"  means a person,  other than a party,  who files documents with or appears before the board in connection with a matter before the board.
2023 Arizona Revised Statutes › Title 42 - Taxation › § 42-1255 - Burden of proof

42-1255.
Burden of proof
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 43 that requires a taxpayer to substantiate an item of income or expense. This section applies to a factual issue if a preponderance of the evidence demonstrates that:
1. The taxpayer asserts a reasonable dispute regarding the issue.
2. The taxpayer has fully cooperated with the department regarding the issue including providing,  within a reasonable period of time,  access to and inspection of all witnesses,  information and documents within the taxpayer's control,  as reasonably requested by the department.
3. The taxpayer has kept and maintained records as required by this title,  by title 43 or by the department.
2023 Arizona Revised Statutes › Title 42 - Taxation › § 42-2001 - Definitions

42-2001.
Definitions
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 department for income tax,  withholding tax,  transaction privilege tax,  luxury tax,  use tax,  property tax,  excise tax on marijuana and severance tax.
(ii) Applications to receive a license or registration for transaction privilege tax,  luxury tax,  use tax,  excise tax on marijuana and withholding tax.
(iii) Information discovered concerning taxes and receipts by the department,  whether or not by compulsory process.
(iv) Return information obtained from the United States internal revenue service and United States bureau of alcohol,  tobacco and firearms.
(v) Information supplied at the special request of the department by a taxpayer that the taxpayer requests to be held in confidence.
(vi) Guidelines,  standards or procedures that are established by the department for,  or other information relating to,  selecting returns or taxpayers for examination or settling or compromising any tax liability.
(vii) A taxpayer's identity,  the nature,  source or amount of the taxpayer's income,  payments,  receipts,  deductions,  exemptions,  credits,  assets,  liabilities,  net worth,  tax liability,  tax withheld,  deficiencies,  overassessments or tax payments,  whether the taxpayer's return was,  is being or will be examined or subject to investigation,  collection or processing or any other data received by,  recorded by,  prepared by,  furnished to or collected by the department with respect to a return or with respect to the termination,  or possible existence,  of liability of any person for any tax,  penalty or interest imposed pursuant to this title or title 43.
(viii) Information supplied by an employee to an employer regarding the employee's election to have the employee's withholding tax reduced for the purposes of contributions to qualifying charitable organizations,  qualified school tuition organizations or public schools pursuant to section 43-401,  subsection G.
(b) Does not include information that is otherwise a public record.
2. " Report"  includes a notice of insurance payments,  a request for a release of a bank account and an inventory of a safe deposit box.
3. " Return"  includes any form prescribed by the department and any supporting schedules,  attachments and lists.
4. " Tax administration"  includes assessment,  collection,  investigation,  litigation,  statistical gathering functions,  enforcement,  policy making functions or management of those functions of the tax revenue laws of this state.
5. " Tax official"  means a nonelected employee or the nonelected employee's designee or agent who is responsible for tax administration.
6. " Taxpayer" ,  with respect to a joint return,  means either party.
2023 Arizona Revised Statutes › Title 42 - Taxation › § 42-2002 - Disclosure of confidential information prohibited

42-2002.
Disclosure of confidential information prohibited
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 employee or agent of the department or the office of administrative hearings,  while performing an administrative duty for the department or the office of administrative hearings,  shall not disclose that information except as provided in this article.
B. A person who has received confidential information pursuant to an exception under section 42-2003,  subsection B or G shall not disclose that information except as provided in this article.
C. Confidential information may not be disclosed relating to applications for cannabis or controlled substance tax licenses or payments under prior law.
D. Confidential information shall not be disclosed if the department determines that disclosure would seriously impair any civil or criminal tax investigation or if the disclosure would be contrary to section 6103(d),  6103(p)(8) or 7213 of the internal revenue code.
2023 Arizona Revised Statutes › Title 42 - Taxation › § 42-2051 - Arizona taxpayer assistance office; taxpayer problem resolution officer; duties

42-2051.
Arizona taxpayer assistance office;  taxpayer problem resolution officer;  duties
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 director's office. The employees of the office may include employees of the department and may also include residents of this state with knowledge of taxation.
B. The office shall assist taxpayers in:
1. Obtaining easily understandable tax information and information on audits,  corrections and appeals procedures of the department.
2. Answering questions regarding preparing and filing returns with the department.
3. Locating documents or payments filed with or submitted to the department by taxpayers.
C. The office shall also:
1. Receive and evaluate complaints of improper,  abusive or inefficient service by employees of the department and recommend to the director appropriate action to correct such service.
2. Identify policies and practices of the department that might be barriers to the equitable treatment of taxpayers and recommend alternatives to the director.
3. Provide expeditious service to taxpayers whose problems are not resolved through normal channels.
4. Negotiate with department personnel to resolve the most complex and sensitive taxpayer problems.
5. Take action to stop or prohibit the department from taking an action against a taxpayer.
6. Participate and represent taxpayers' interests and concerns in planning meetings,  reviewing instructions and formulating department policies and procedures.
7. Compile data each year on the number and type of taxpayer complaints and evaluate the actions taken to resolve complaints.
8. Survey taxpayers each year to obtain their evaluation of the quality of service provided by the department.
9. Monitor the number and type of seizures of property under chapter 1,  article 5 of this title.
10. Notify and recommend appropriate action to the director if the office determines that a seizure has occurred or will occur which has subjected or will subject the taxpayer to a seizure of property without affording a reasonable opportunity for discussion of alternative methods of payment of the obligation.
11. Perform other functions which relate to taxpayer assistance as prescribed by the director.
D. Actions taken by the office may be reviewed only by the director upon request of the department or a taxpayer. The director may modify action taken by the office.
2023 Arizona Revised Statutes › Title 42 - Taxation › § 42-2052 - Erroneous advice or misleading statements by the department; abatement of penalties and interest; definitions

42-2052.
Erroneous advice or misleading statements by the department;  abatement of penalties and interest;  definitions
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 acting in an official capacity in response to a specific request from the taxpayer and not from the taxpayer's failure to provide adequate or accurate information.
2. All of the following are true:
(a) A tax return form or tax ruling prepared by the department contains a statement that,  if followed by a taxpayer,  would cause the taxpayer to misapply this title or title 43.
(b) The taxpayer reasonably relies on the statement.
(c) The taxpayer's underpayment directly results from this reliance.
B. Each employee of the department,  at the time any oral advice is given to any person,  shall inform the person that the department is not bound by such oral advice.
C. For purposes of this section:
1. " Tax return form"  includes the instructions that the department prepares for use with the tax return form whether the form or instructions are provided on paper or by electronic means.
2. " Tax ruling"  means a statement issued by the director and denominated as a tax ruling or a tax procedure.
2023 Arizona Revised Statutes › Title 42 - Taxation › § 42-2053 - Procedures involving taxpayer interviews

42-2053.
Procedures involving taxpayer interviews
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 the place of business of the taxpayer,  or at the department office closest to the taxpayer's residence.
2. Conduct the interview at a reasonable time which imposes no unusual hardship on the taxpayer.
3. Allow the taxpayer to record the interview.
B. An employee of the department may record an interview with a taxpayer that relates to a deficiency in payment of any tax owed to the department. The employee shall inform the taxpayer of the recording before the interview begins. On written request by the taxpayer,  the department shall provide a transcript of the recording,  if the taxpayer reimburses the department for the cost of providing the transcript.
C. Before beginning any interview relating to a deficiency in the payment of any tax owed to the department an employee of the department shall provide the taxpayer with information regarding the taxpayer's rights and the audit,  corrections and appeals procedures of the department relating to the taxpayer's deficiency.
2023 Arizona Revised Statutes › Title 42 - Taxation › § 42-2055 - Taxpayer assistance orders

42-2055.
Taxpayer assistance orders
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 or will suffer a significant hardship due to the manner in which the department administers the tax laws.
B. A taxpayer assistance order may require the department to release the taxpayer's property that has been levied on,  cease any action or refrain from taking any action to enforce state tax laws against the taxpayer pending resolution of the issue or issues giving rise to the order.
C. The director or the problem resolution officer may modify,  reverse or rescind a taxpayer assistance order. A taxpayer assistance order is binding on the department until it is reversed or rescinded.
D. The running of the applicable period of limitations for any action that is the subject of a taxpayer assistance order is suspended from the date the taxpayer applies for the order or the date the order is issued,  whichever is earlier,  until the order's expiration date,  modification date or rescission date,  if any. Interest that would otherwise accrue on an outstanding tax obligation is not affected by the issuance of a taxpayer assistance order.
E. A taxpayer assistance order may not be used:
1. To contest the merits of a tax liability.
2. As a substitute for informal protest procedures or administrative or judicial proceedings to review a deficiency assessment,  collection action or denial of a refund claim.
2023 Arizona Revised Statutes › Title 42 - Taxation › § 42-2057 - Agreement for installment payments of tax

42-2057.
Agreement for installment payments of tax
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 and manner as the department may prescribe.
B. The department,  without notice,  may alter,  modify or terminate an installment payment agreement if the taxpayer:
1. Fails to pay an installment at the time the installment payment is due under the agreement.
2. Fails to pay any other tax liability at the time the liability is due.
3. Fails to file any tax report or return at the time the report or return is due.
4. Fails to furnish any information requested by the department within thirty days after the request.
5. Fails to notify the department of a material improvement in the taxpayer's financial condition above the income previously reported in the most recent income statement within thirty days after the material improvement.
6. Provides inaccurate,  false or incomplete information to the department.
C. Notwithstanding any installment payment agreement,  the department may offset any tax refunds against the liabilities provided for in the installment payment agreement,  may file and fully enforce any tax liens and may engage in collection activities involving the sale of assets.
D. The department,  without notice,  may terminate an installment payment agreement if the department believes that the collection of tax to which the payment agreement pertains is in jeopardy.
E. If the department determines that the financial condition of a taxpayer has improved,  the department may alter,  modify or terminate the agreement by providing notice to the taxpayer at least thirty days before the effective date of the action. The notice shall include the reasons why the department believes the alteration,  modification or termination is appropriate.
F. An installment payment agreement shall remain in effect for the term of the agreement except as otherwise provided in this section.
G. A taxpayer who is aggrieved by a decision of the department to refuse to enter into an installment payment agreement or to alter,  modify or terminate an agreement entered into pursuant to this section may petition the office of taxpayer assistance to review that determination. The office of taxpayer assistance may stay such alteration,  modification or termination pending its review and may modify or nullify the determination.
H. The department and the taxpayer may modify any installment payment agreement at any time by entering into a new or modified agreement.
I. The department may adopt rules to implement this section.
2023 Arizona Revised Statutes › Title 42 - Taxation › § 42-2058 - Basis for evaluating employee performance

42-2058.
Basis for evaluating employee performance
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 free of favoritism or bias,  reasonable and consistent with the laws of this state and the rules,  procedures and rulings of the department.
C. The department shall not evaluate an employee on the basis of taxes assessed or collected by that employee.
2023 Arizona Revised Statutes › Title 42 - Taxation › § 42-2059 - Additional audits or proposed assessments prohibited; exceptions

42-2059.
Additional audits or proposed assessments prohibited;  exceptions
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 tax for the period subjected to the audit is fixed and determined,  and an additional audit may not be conducted except under the following circumstances:
1. A taxpayer files a claim for refund under section 42-1251,  subsection C or any other provision authorizing a claim for refund. Any departmental audit of the claim is limited to the issues presented on the claim for refund.
2. Changes or corrections are required to be reported to the department by section 43-327. The department may audit any such reports or any periods for which a report was required notwithstanding this section and may determine a tax deficiency or a refund.
3. If the taxpayer failed to disclose material information during the audit,  or falsified books or records or otherwise engaged in an action that prevented the department from conducting an accurate audit,  the applicability of this subsection may be part of a subsequent protest and may be contested by the taxpayer pursuant to chapter 1,  article 6 of this title.
4. If a managed audit is completed under the terms of a limited managed audit agreement,  the department may audit the issues not covered by the limited managed audit agreement within the statute of limitations prescribed by section 42-1104.
B. If the department issues a notice of proposed assessment of taxes imposed by chapter 5,  article 1 or 4 of this title or title 43,  chapter 10,  the department may not increase the amount of the proposed assessment except in one or more of the following circumstances:
1. The taxpayer made a material misrepresentation of facts.
2. The taxpayer failed to disclose a material fact to the auditor.
3. The department requested information and the taxpayer fails to provide that information to the department.
4. After issuing the notice of proposed assessment but before the assessment becomes final the tax court,  court of appeals or supreme court issues a decision,  the application of which causes the tax initially proposed to increase.
C. Subsection B of this section does not apply to changes or corrections that are required to be reported to the department by section 43-327.
2023 Arizona Revised Statutes › Title 42 - Taxation › § 42-2060 - Refund if items of income transfer from one year to another

42-2060.
Refund if items of income transfer from one year to another
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 for the same taxpayer,  or for the same year for a related taxpayer described in sections 42-1120,  42-1121 and 43-645,  shall be allowed as an offset in computing any deficiency in tax for any year resulting from the transfer of such income or deductions,  or both,  but no refund shall be allowed unless the overpayment is certified to the director of the department of administration or a claim for refund is filed within the time otherwise provided for in this title.
2. An overpayment due an S corporation,  as defined in section 1361 of the internal revenue code,  for any year that results from an improper inclusion of income is allowed as an offset in computing any deficiency in an overlapping year for the shareholders of the S corporation.
B. The offsets provided by subsection A of this section shall not be allowed after the expiration of seven years from the due date of the return on which the overpayment is determined.
2023 Arizona Revised Statutes › Title 42 - Taxation › § 42-2061 - Expedited review of jeopardy assessments

42-2061.
Expedited review of jeopardy assessments
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,  the department shall determine whether both the jeopardy determination and the amount assessed are reasonable.
B. Within thirty days after the department notifies the taxpayer of the determination under subsection A of this section,  the taxpayer may bring a civil action in tax court for a determination under this subsection. Within twenty days after service of process is made on the state,  the tax court shall determine whether both the jeopardy determination and the amount assessed are reasonable. If the taxpayer requests an extension of the twenty day period and establishes reasonable grounds why an extension should be granted,  the court may grant an extension of not more than forty additional days. If the court determines that either the jeopardy determination or the amount assessed is unreasonable,  the court may order the department to abate the assessment,  to redetermine any part of the amount assessed or to take such other action as the court finds to be appropriate. A determination made by the tax court under this subsection is final except as provided in section 12-170,  subsection C.
2023 Arizona Revised Statutes › Title 42 - Taxation › § 42-2062 - Abatement of penalties and fees; definition

42-2062.
Abatement of penalties and fees;  definition
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 assessment to be imposed was due to reasonable cause and not due to wilful neglect.
B. If,  before an assessment is issued,  a taxpayer applies in writing requesting waiver of a penalty or fee that may be assessed pursuant to section 42-1107,  42-1125,  42-1126,  43-581 or 43-582,  the department shall not assess that penalty or fee if it determines that the conduct,  or lack of conduct,  that would cause the assessment was due to reasonable cause and not due to wilful neglect.
C. For the purpose of this section,  and only as applied to the taxes imposed by chapter 5,  articles 1 through 6 and chapter 6,  article 3 of this title,  " reasonable cause"  includes situations in which the taxpayer had a reasonable basis to believe that the tax did not apply to the business activity or the storage,  use or consumption of the taxpayer's tangible personal property in this state.
2023 Arizona Revised Statutes › Title 42 - Taxation › § 42-2063 - Department responsibilities; decision deadlines; definition

42-2063.
Department responsibilities;  decision deadlines;  definition
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 the taxpayer or his designated representative of the proposed issue date.
B. The department shall attempt to issue a decision by the director on any pending appeal to the director within ninety days after the last brief is due. If the department expects the decision to be delayed,  the department shall notify the taxpayer or his designated representative of the proposed issue date.
C. The department shall provide a written document to each new transaction privilege tax licensee that provides information regarding the collection,  reporting and payment of taxes in the appropriate tax classification.
D. For purposes of this section " designated representative"  means an individual who has been authorized in writing to represent another person before the department of revenue.
2023 Arizona Revised Statutes › Title 42 - Taxation › § 42-2065 - Abatement of interest for errors or delays caused by the department

42-2065.
Abatement of interest for errors or delays caused by the department
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 payment of tax to the extent that any error or delay in the payment is attributable to an officer or employee of the department being unreasonably erroneous or dilatory.
B. The director may consider an error or delay only if no significant aspect of the error or delay can be attributed to the taxpayer and after the department has contacted the taxpayer in writing with respect to the deficiency or payment.
C. The director's decision is considered to be the department's final decision or order and is subject to appeal to the state board pursuant to section 42-1253.
2023 Arizona Revised Statutes › Title 42 - Taxation › § 42-2066 - Statute of limitations on tax debts

42-2066.
Statute of limitations on tax debts
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 applies:
1. The department has commenced a suit to collect the debt pursuant to section 42-1114.
2. The taxpayer has agreed in writing to extend this time period before the time period expires.
3. Enforced collection has been stayed by the operation of federal or state law during the period. The period of limitations prescribed by this section is extended by the period of time that the department was stayed from engaging in enforced collections.
2023 Arizona Revised Statutes › Title 42 - Taxation › § 42-2067 - Limitation on the use of pseudonyms by department employees

42-2067.
Limitation on the use of pseudonyms by department employees
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 the use of a pseudonym,  such as protection of personal safety.
B. The director shall maintain a list of the persons who are authorized to use pseudonyms.
2023 Arizona Revised Statutes › Title 42 - Taxation › § 42-2068 - Suspension of running of period of limitations during taxpayer disability

42-2068.
Suspension of running of period of limitations during taxpayer disability
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 internal revenue code. The department shall suspend the statute of limitations during any period of a qualifying individual's life that the individual is financially disabled.
B. A determination under this section may be appealed pursuant to section 42-1251 or 42-1253.
2023 Arizona Revised Statutes › Title 42 - Taxation › § 42-2069 - Taxpayer communications with practitioners; confidentiality; definitions

42-2069.
Taxpayer communications with practitioners;  confidentiality;  definitions
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 would be considered to be a privileged communication if it were between a taxpayer and an attorney.
B. Subsection A of this section may only be asserted in:
1. A noncriminal tax matter before the department.
2. A proceeding before the state board of tax appeals.
3. A noncriminal tax proceeding in court.
C. The department may deny an individual coverage under this privilege if it determines that a practitioner has engaged in activities or practices involving matters before the department that,  if they involved matters before the United States internal revenue service,  would result in the practitioner losing the authorization to practice before the internal revenue service. A practitioner aggrieved by a determination to deny the privilege may appeal that determination pursuant to section 42-1253 or 42-1254.
D. For the purposes of this section:
1. " Federally authorized tax practitioner"  means an individual who is authorized under federal law to practice before the United States internal revenue service if the practice is subject to federal regulation under 31 United States Code section 330. Federally authorized tax practitioner includes any person who is engaged in practice with one or more federally authorized tax practitioners and who is subject to the same standards of practice and ethics requirements as a federally authorized tax practitioner.
2. " Tax advice"  means advice given by an individual with respect to a matter that is within the scope of the individual's authority to practice as a federally authorized tax practitioner.
2023 Arizona Revised Statutes › Title 42 - Taxation › § 42-2070 - Prohibited audit techniques

42-2070.
Prohibited audit techniques
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 examination techniques in criminal investigations.
2. The director may accept amended returns due after any federal adjustment required pursuant to section 43-327 in which the change or correction was determined by the commissioner of internal revenue or other officer of the United States or other competent authority using financial status or economic reality techniques.
3. The director may authorize a deficiency assessment pursuant to section 42-1108 if the taxpayer fails to report a change or correction pursuant to section 43-327 in which the commissioner of internal revenue or other officer of the United States or other competent authority used financial status or economic reality techniques and the department receives the change or correction through its exchange agreement with the internal revenue service.
2023 Arizona Revised Statutes › Title 42 - Taxation › § 42-2071 - Reimbursement of bank costs caused by erroneous tax levies

42-2071.
Reimbursement of bank costs caused by erroneous tax levies
A. If the department of revenue issues a levy in error,  or erroneously causes one or more checks or other negotiable instruments to be returned to the issuer by the issuer s bank or financial institution,  the taxpayer is entitled to reimbursement for reasonable bank charges,  not to exceed five hundred dollars per incident.
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.
C. By filing a claim under this section,  a taxpayer authorizes the department of revenue to provide the department of administration with any relevant information regarding the circumstances and events that are relevant to the claim. The department of administration is subject to the requirements of article 1 of this chapter.
2023 Arizona Revised Statutes › Title 42 - Taxation › § 42-2072 - Stay of enforcement actions pending offer in compromise

42-2072.
Stay of enforcement actions pending offer in compromise
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 department and the attorney general,  the department shall not levy on the taxpayer or any holder of the taxpayer's assets unless the department finds that collection otherwise possibly would be jeopardized by a delay. A taxpayer who is aggrieved by a decision to levy while an offer in compromise is pending may appeal that decision to the problem resolution officer,  and the decision of the problem resolution officer is final as to both the department and the taxpayer.
2023 Arizona Revised Statutes › Title 42 - Taxation › § 42-2073 - Report of employee misconduct; definition

42-2073.
Report of employee misconduct;  definition
A. On or before March 1 of each year,  beginning in 2001,  the director shall submit a detailed report of employee misconduct verified as valid to the governor,  the speaker of the house of representatives and the president of the senate. The report shall include:
1. All categories of instances involving the misconduct of employees of the department during the preceding calendar year.
2. The disposition during the preceding calendar year of any instances of misconduct,  without regard to the year of misconduct.
3. The primary activity the employee was engaged in when the misconduct occurred.
4. The nature of the misconduct,
5. The number of incidents received by category and the disposition of those incidents,  including the number of employees reprimanded,  terminated or prosecuted.
B. Incidents that are subject to reporting include only written complaints and complaints received by telephone through management channels.
C. In collecting data for the report,  the director or the director's designee shall maintain records of taxpayer complaints of misconduct verified as valid by department employees on an individual basis. The individual employee records shall be used to prepare the report but shall not be listed in the report. The department shall use the individual records in evaluating the performance of the individual employee.
D. The director shall create and adopt a uniform procedure by which the department shall evaluate complaints of employee misconduct for the purposes of verifying the complaint as valid.
E. For purposes of this section " verified as valid"  means any report of employee misconduct that has been reviewed pursuant to subsection D and determined by the department to be in violation of any one of the following:
1. The laws of the United States or this state.
2. Policies adopted by the state of Arizona.
3. Policies adopted by the department.
2023 Arizona Revised Statutes › Title 42 - Taxation › § 42-2074 - Equitable relief from joint and several liability

42-2074.
Equitable relief from joint and several liability
A. The director may relieve an individual from joint and several liability under the following circumstances:
1. Taking into account all of the facts and circumstances,  it is inequitable to hold the individual liable for all or part of any unpaid tax or any deficiency.
2. Relief is not available to the individual under section 42-2201 or 42-2202.
B. The director's decision is considered to be the department's final decision or order and is subject to appeal to the state board of tax appeals under section 42-1253.
2023 Arizona Revised Statutes › Title 42 - Taxation › § 42-2075 - Audit duration; applicability; initial audit contact

42-2075.
Audit duration;  applicability;  initial audit contact
A. An audit of a taxpayer's return or claim for refund shall not exceed two years after the date of initial audit contact to the issuance of a notice of proposed deficiency assessment or proposed overpayment,  except:
1. An audit of a fraudulent tax return.
2. An audit delayed as the result of the taxpayer's bankruptcy proceeding.
3. An audit in which the department has issued a letter to the taxpayer or the taxpayer's representative citing the potential imposition of the penalty described in section 42-1125,  subsection C for the taxpayer's failure or refusal to provide information pursuant to the department's written request.
4. An audit involving proceedings concerning the enforcement or validity of a subpoena or subpoena duces tecum issued pursuant to section 42-1006,  subsection C.
5. An audit involving a proceeding under section 42-2056.
6. An audit in which a taxpayer has filed a petition pursuant to section 43-1148,  but only in relation to the effect of the petition request.
7. An audit in which the taxpayer provides a written request to extend the audit beyond the two-year period. A request for extension under this paragraph is not a substitute for a waiver of the statute of limitations pursuant to section 42-1104,  subsection B,  paragraph 9. However,  a waiver of the statute of limitations is considered to be a written request to extend the audit beyond the two-year period under this paragraph.
B. This section applies to audits conducted by the department and to audits conducted by the department and cities and towns pursuant to section 42-6002.
C. For the purposes of subsection A of this section,  an initial audit contact occurs:
1. For a field audit,  on the date of the first meeting between the taxpayer or the taxpayer's representative and a member of the department's audit staff.
2. For a desk or office audit or a review conducted pursuant to section 42-1109,  on the date of the first letter to the taxpayer regarding the audit or review. A letter is not considered to be regarding the audit or review if the letter is only requesting one or more of the following:
(a) The required filing of a tax return.
(b) A copy of the taxpayer's federal return.
(c) Required documents that the taxpayer failed to include with the return.
(d) Documentation to resolve an inconsistency within the return or a discrepancy between the return and other information that is received from a third party or that is otherwise already in the department's possession,  if the adjustment of the return due to the inconsistency or discrepancy would be considered a nonaudit adjustment under section 42-1108,  subsection G or H.
(e) Information that was left out of the taxpayer's return because a submitted form was incomplete.
(f) Replacements for documents that are not legible.
2023 Arizona Revised Statutes › Title 42 - Taxation › § 42-2076 - Audit results; documentation

42-2076.
Audit results;  documentation
At the time when the department issues a deficiency assessment or denies all or part of a claim for refund,  the department shall also provide the taxpayer and,  if applicable,  the taxpayer's authorized representative with a written explanation of all adjustments made,  including the specific statutory,  regulatory and judicial bases for the adjustments.
2023 Arizona Revised Statutes › Title 42 - Taxation › § 42-2077 - Distribution of tax decisions; definitions

42-2077.
Distribution of tax decisions;  definitions
A. Beginning October 1,  2006,  the agencies listed in this section shall provide tax decisions to the law libraries of Maricopa county,  the Arizona state university college of law,  the university of Arizona college of law,  the state law library and the Arizona state library,  archives and public records as follows:
1. Each redacted tax decision issued during the preceding calendar quarter shall be provided by:
(a) The department of revenue.
(b) The office of administrative hearings.
(c) The municipal tax hearing office or any other city or town tax hearing office.
(d) The department of economic security.
(e) The department of transportation.
2. Each tax decision issued during the preceding calendar quarter shall be provided by the state board of tax appeals.
B. At the same time as the decisions are issued pursuant to subsection A,  each agency shall publish the decisions on its official web site.
C. Any person may file an original action in tax court,  or in superior court in any county against an agency listed in subsection A,  paragraphs 1 and 2,  to enforce this section.
D. The supreme court shall adopt rules to establish a procedure to distribute tax memorandum decisions to the general public and determine what memorandum decisions are appropriate for distribution. A memorandum decision is a written disposition of a matter by a court in this state that is not intended for publication as defined by rule 28(2)(4) of the Arizona rules of civil appellate procedure.
E. For the purposes of this section:
1. " Redacted tax decision"  means a tax decision that has the name,  identification number and address of the taxpayer,  the amount of tax,  penalty and interest in dispute and other information that will allow identification of the taxpayer deleted from the text of the decision.
2. " Tax"  includes any tax arising under title 5,  chapters 1,  2,  3 and 4,  title 23,  chapters 4 and 6,  titles 20,  28,  43 and 48 and this title.
3. " Tax decision"  means a ruling,  decision,  opinion,  minute entry,  under advisement ruling,  memorandum decision or any other written resolution of a state,  county or municipal tax dispute or appeal that involves a substantive or significant technical or procedural issue and includes actions taken by:
(a) The department of revenue hearing officer.
(b) The office of administrative hearings.
(c) The municipal tax hearing officer or any other city or town hearing officer.
(d) The state board of tax appeals.
(e) The department of economic security appeals board.
(f) The department of transportation.
2023 Arizona Revised Statutes › Title 42 - Taxation › § 42-2078 - New interpretation or application of law; affirmative defense; definition

42-2078.
New interpretation or application of law;  affirmative defense;  definition
A. Unless expressly authorized by law,  the department shall not apply any newly enacted law retroactively or in a manner that will penalize a taxpayer for complying with prior law.
B. If the department adopts a new interpretation or application of any provision of this title or title 43 or determines that any of those provisions applies to a new or additional category or type of taxpayer,  and the change in interpretation or application is not due to a change in the law:
1. The change in interpretation or application applies prospectively unless it is favorable to taxpayers.
2. The department shall not assess any tax,  penalty or interest retroactively based on the change in interpretation or application.
3. The change is an affirmative defense in any administrative or judicial action for retroactive assessment of tax,  interest and penalties to taxable periods before the new interpretation or application was adopted.
C. Tax liabilities,  penalties and interest paid before a new interpretation or application of chapter 5 of this title by the department shall not be refunded unless the taxpayer requesting the refund provides evidence satisfactory to the department that the amounts will be refunded to the person who paid an added charge to cover the tax.
D. For the purposes of this section,  " new interpretation or application"  includes policies and procedures adopted by administrative rule,  tax ruling,  tax procedure or instructions to a tax return.
2023 Arizona Revised Statutes › Title 42 - Taxation › § 42-2079 - Suspension of liabilities by reason of disasters, terroristic or military actions or states of emergency; definitions

42-2079.
Suspension of liabilities by reason of disasters,  terroristic or military actions or states of emergency;  definitions
A. Notwithstanding sections 42-1107 and 42-1123,  the director shall specify a period of up to one year to extend any due date and suspend any penalty or interest that would ordinarily accrue during that time for any affected taxpayer in any of the following circumstances:
1. Section 7508A of the internal revenue code relating to disasters and terroristic and military actions applies.
2. The governor has declared a state of emergency pursuant to section 26-303,  subsection D.
B. Notwithstanding section 42-1123,  interest shall not accrue on any unpaid tax during the time determined under subsection A of this section for any affected taxpayer.
C. For the purposes of this section:
1. " Affected taxpayer"  means:
(a) An individual whose principal residence is located in a covered area.
(b) A business entity or sole proprietor whose principal place of business is located in a covered area.
(c) An individual who is a relief worker affiliated with a recognized government or philanthropic organization and who is assisting in a covered area.
(d) An individual,  business entity or sole proprietor whose records necessary to meet a tax filing or paying deadline are maintained in a covered area.
(e) The spouse of an affected taxpayer,  solely with regard to a joint return of the husband and wife.
(f) Any other person determined by the director to be affected pursuant to subsection A of this section.
2. " Covered area"  means a geographical area to which subsection A of this section applies.