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AZ Amnesty for Penalties and Interest Expires November 2

The Arizona Tax Recovery Program began this month and will soon end on November 2, 2015. It’s the creation of Senate Bill 1471, passed earlier this year. All taxpayers who meet the application requirements will be eligible to have the interest and civil penalties waived for tax liabilities associated with annual tax years ending through December 31, 2013 and February 1, 2015 for all monthly and quarterly filers.

The amnesty program applies to taxes administered or collected by the Arizona Department of Revenue including individual and corporate taxes and transaction privilege (TPT) tax. The program does not apply to the interest and penalties for withholding tax, property tax or luxury tax.

Taxpayers who apply will not be eligible for any refunds or credits that would reduce their tax liability for the taxable years to which they are applying. Be sure to check the Arizona Tax Recovery FAQ’s for additional rules regarding who’s eligible.

You can apply for the amnesty program (Tax Recovery program) in a few simple steps.

Fill out an application. The form is available on the Arizona Department of Revenue website here. Be sure to include any returns and reports for the taxable period for which you are applying. If you have insufficient information to complete a full income tax return, you may qualify by completing a gross income tax return.

Include the most recent notices or other related documentation. You’ll want to do this if you already have an established tax liability.

File during the amnesty period and include payment of the tax owed. The application and tax payments must be received by ADOR by November 2, 2015.

See detailed filing information on the ADOR website in the Tax Recovery section at www.azdor.gov/TaxRecovery.aspx.

By Melinda Nelson, CPA