The Arizona Revised Statutes have been updated to include the revised sections from the 56th Legislature, 1st Regular Session. Please note that the next update of this compilation will not take place until after the conclusion of the 56th Legislature, 2nd Regular Session, which convenes in January 2024.
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This online version of the Arizona Revised Statutes is primarily maintained for legislative drafting purposes and reflects the version of law that is effective on January 1st of the year following the most recent legislative session. The official version of the Arizona Revised Statutes is published by Thomson Reuters.
42-2052 - Erroneous advice or misleading statements by the department; abatement of penalties and interest; definitions
42-2052. Erroneous advice or misleading statements by the department; abatement of penalties and interest; definitions
A. Notwithstanding sections 42-1123 and 42-1125, no interest or penalty may be assessed on an amount assessed as a deficiency if either:
1. The deficiency assessed is directly attributable to erroneous written advice furnished to the taxpayer by an employee of the department acting in an official capacity in response to a specific request from the taxpayer and not from the taxpayer's failure to provide adequate or accurate information.
2. All of the following are true:
(a) A tax return form or tax ruling prepared by the department contains a statement that, if followed by a taxpayer, would cause the taxpayer to misapply this title or title 43.
(b) The taxpayer reasonably relies on the statement.
(c) The taxpayer's underpayment directly results from this reliance.
B. Each employee of the department, at the time any oral advice is given to any person, shall inform the person that the department is not bound by such oral advice.
C. For purposes of this section:
1. "Tax return form" includes the instructions that the department prepares for use with the tax return form whether the form or instructions are provided on paper or by electronic means.
2. "Tax ruling" means a statement issued by the director and denominated as a tax ruling or a tax procedure.