Arizona Revised Statutes § 42-2304 Interest And Penalties; Refunds

42-2304. Interest and penalties; refunds

A. Notwithstanding section 42-1125, the director shall not assess any penalties unless the managed audit discloses that the taxpayer committed fraud or wilful tax evasion or that the taxpayer collected monies that were represented as tax but were not remitted to the state.

B. Notwithstanding section 42-1123, the director shall not assess interest if the managed audit results in a deficiency, if the taxpayer pays the tax within forty-five days of receipt of the notice of determination and the taxpayer did not commit the activities described in subsection A of this section. If the entire assessment is paid after forty-five days of the taxpayer's date of receipt of the notice of determination, the taxpayer shall pay interest pursuant to section 42-1123.

C. If the findings of a managed audit determine that a refund is due to the taxpayer, the department shall not pay interest to the taxpayer if the refund is issued within forty-five days of the taxpayer's date of receipt of the notice of determination. If the refund is paid after forty-five days of the taxpayer's date of receipt of the notice of determination, the department shall pay interest pursuant to section 42-1123.

D. For the purposes of subsections B and C of this section, " notice of determination" means either:

1. The director's notice of determination, if not appealed.

2. The final decision at the highest level of appeal to which the matter is taken, if a notice of determination or rejection is appealed.

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Last modified: October 13, 2016