Arizona Revised Statutes § 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.

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Last modified: October 13, 2016