Assigned to FIN FOR COMMITTEE

ARIZONA STATE SENATE

Phoenix, Arizona

FACT SHEET FOR H.B. 2247

taxpayer services; technical corrections

Purpose

Makes technical changes and conforms the definition of “tax ruling” in relation to closing agreements to existing statute.

Background

Closing agreements are used by the Department of Revenue (DOR) to resolve disputed audits and refund claims where there is a legitimate dispute as to the liability of the taxpayer or DOR and both the taxpayer and DOR are able to reach a reasonable consensus regarding what would be a fair settlement. Typically, closing agreements resolve the financial liability of the taxpayer or the State and often settle the tax treatment of the disputed matters as well.

H.B. 2247 conforms the definition of “tax ruling” under closing agreements to the definition on the Taxpayers’ Bill of Rights.

Provisions

1. Conforms the definition of “tax ruling” with the Taxpayers’ Bill of Rights.

2. Makes technical changes.

3. Provides for a general effective date.

House Action

WM 1/29/02 DP 8-0-0-2

3^rd Read 2/12/02 58-1-1-0

Prepared by Senate Staff

March 21, 2002