tax adminstration; federal conformity
Makes changes to various Department of Revenue (DOR)
administrative practices.
Current law may be construed to imply that Arizona
statutes of limitation waivers can be applied as a blanket waiver on the
taxpayer’s entire tax return, even though that same taxpayer has received a
federal waiver for only specific items on the tax return. This bill eliminates that implied option by
specifically stating that state waivers apply to only those income items
included on the federal waiver.
Currently by statute, DOR may only release
confidential tax information to the principal of a corporation or
partnership. However, some entities
conducting business in the state of Arizona are multinational corporations,
whose principals do not reside in Arizona or even the United States. In such cases, locating the principal
officer may be difficult.
Current law may be construed to imply that DOR has
the authority to choose whether a taxpayer should file a copy of the federal
audit or an actual amended tax return with DOR after a federal audit. This bill allows the taxpayer to choose the reporting
method.
· Clarifies that the Arizona statute of limitation extension applies to those items in a state audit that were also identified in a federal audit.
· Allows a principal corporate officer to execute written authorization for the receipt of confidential information for a controlled subsidiary.
·
Expands
who may receive confidential tax information between DOR and corporations. In
addition to the corporate principal officer, any authorized person may receive
the information; if they are designated by the principal officer on the
Corporate Board of Directors (or similar body).
·
Gives
the DOR the discretion to grant appropriate relief for a determinate number of
years to a taxpayer with corporate apportionment issues that determine the corporations
multi-state activities in Arizona.
· Clarifies that taxpayers have the choice to file a copy of the final determination of their federal audit or an amended tax return with DOR.
· If the taxpayer disagrees with the final determination they can request DOR to recalculate the state tax liability and the recalculations will not be considered a state audit. DOR can ask for an amended return from the taxpayer if they do not have enough information to recalculate the taxpayers liability.
· Makes technical corrections.
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45th Legislature
First Regular Session 2 May 10, 2001
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