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PHOENIX, AZ — Arizona is launching a tax recovery program that will run from September 1 through October 1, 2011. The legislature included the proposal in the budget bill that was passed and signed by Governor Brewer on April 6, 2011. The proposal gives individuals and businesses the opportunity to file past due Arizona state tax returns with no civil penalties and a reduced amount of interest. The goal of this program is to offer relief and a fresh start to those taxpayers who, for whatever reason, underreported or failed to file their taxes.
“Many times, taxpayers get behind in their taxes for reasons beyond their control.” Arizona Department of Revenue Director John Greene explained, “This tax recovery program will give taxpayers who have fallen behind an opportunity to bring their accounts up to date.”
Some individuals and businesses are not paying their fair share of taxes. These range from those who don’t realize they should be paying tax to those who deliberately underreport their taxes or refuse to file altogether. When taxpayers underreport or fail to file their taxes, it places an unfair burden on the honest taxpayers who are paying for the essential government services enjoyed by all Arizonans.
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 should visit http://www.azdor.gov/taxrecovery.aspx for more information about the tax recovery program. You may also call the Arizona Department of Revenue at 1-877-542-2281.
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If you own one or more rental properties then you need to know that as of 1/1/11 you are required to 1099 any vendors hired for service in the amount of $600 or more. There are certain exception to the rule, but if you don’t comply by the deadlines, you could be subject to a $250 late fee.