Arizona Tax Recovery Program

This week Arizona announced a tax recovery program for Arizonan's who may have fallen behind on their state taxes. The legislature included the proposal in the budget, which passed and was signed by Governor Brewer on April 6th, 2011. The program allows individuals and businesses the opportunity to file past state tax returns without civil penalties and will reduce the amount of interest.

The Arizona Tax Recovery period will run from September 1 through October 1, 2011 and the tax types eligible to file include individual and corporate income, withholding, luxury, transaction privilege (sales), and use. Tax Recovery applications will only be accepted from September 1, 2011 through October 1, 2011. The total tax liability must be paid in full with the recovery application or by October 1, 2011.

For taxes filed on an annual basis, such as income tax, recovery is available for years beginning on or after January 1, 2004 and ending before January 1, 2010. Taxpayers who file taxes, such as transaction privilege or withholding, on a monthly or quarterly basis are eligible for tax periods beginning on or after January 1, 2005 and ending before January 1, 2010.

Tax recovery is a chance for those who live, work or do business in Arizona to come clean and pay any back state taxes they owe in a manner that is advantageous for the taxpayers and the State of Arizona.” said Greene. “The taxpayer can file and pay without any civil penalties or threat of prosecution and with a reduced interest rate and the state benefits by the voluntary payments which save the time and expense of audit and collection efforts.”

Taxpayers can visit http://www.azdor.gov/taxrecovery.aspx for more information about the tax recovery program or call the Arizona Department of Revenue at 1-877-542-2281.

Source: Arizona Department of Real Estate Informational Alert. Arizona Department of Revenue.