2016 Tax Amnesty Program for Arizona Taxpayers

Your Guide to State, Local, Federal, Estate + International Taxation

The Arizona Legislature has approved for 2016 a state-tax recovery program (House Bill 2708). This tax amnesty program gives taxpayers who have not paid their Arizona income taxes and/or sales (TPT) taxes for tax years prior to 2014 (not 2014 or 2015) a chance to pay them without penalties or interest.

This is the second year that the legislature has approved such an amnesty program. Last year, the Arizona Department of Revenue (AZDOR) reportedly brought in over $55 million in additional tax revenue due to the success of this program. This year’s program features an additional benefit for taxpayers by allowing them to pay their outstanding tax liability over a three-year period.

Here are some quick and basic details of this year’s program:

  • Must file an application with the AZDOR during the amnesty period
  • Amnesty period begins September 1, 2016 and ends on October 31, 2016
  • Taxpayers may choose payment plan option (penalties and interest are not fully waived until payments are fully paid)
  • Tax years currently being audited by AZDOR are ineligible

Taxpayers that have delinquent taxes, or returns that have not been filed for the tax years above, will want to consider taking advantages of this amnesty program. Contact your tax advisor for further assistance.

By Stacy Redmond