If you are behind on your Arizona state taxes, you may qualify to take advantage of the Arizona Tax Recovery Program.

A few weeks ago, Governor Doug Ducey announced the 2016 Arizona Tax Recovery Program. The program which runs from September 1st, 2016 to October 31st, 2016 allows Arizona taxpayers the ability to pay back taxes without any penalty, interest, or criminal prosecution. Taxes that are included in the program are individual income, corporate income, and transaction privilege sales tax.

Eligible Tax Years

  • The liability period for taxpayers filing annually is any tax year ending before January 1st, 2014. Therefore, an individual that owes back taxes may be able to request recovery for tax years 2013 and earlier.
  • Monthly and quarterly filings are for periods ending before February 1st, 2015.
  • Taxpayers can elect to pay the liability in full on or before October 31st, 2016 or can pay in installments over a 24-month period no later than October 31st, 2018.

Eligibility

Tax recovery is available to taxpayers that meet these conditions:

  • Have an existing liability for tax due and have received a notice from AZDOR.
  • Have failed to file a tax return due during the periods covered under the program.
  • Failed to report ALL income or ALL tax and associated interest or penalties due.
  • Claimed credits or deductions incorrectly.
  • Misrepresented or did not include any tax due.
  • Non-residents or part-year residents who received income that may be taxable in Arizona.
  • Out-of-state and multi-state businesses.

For more information on the Arizona Tax Recovery Program visit the following link: https://azdor.gov/taxrecovery.aspx

If you think you qualify for the tax recovery program, please contact Holdsworth Chadd Fuller CPAs for a free consultation or tax assistance.