From September 1 through October 31, 2016, the State of Arizona is offering an opportunity for those who live, work, or do business in Arizona to pay any back taxes owed to the state without penalty, interest or criminal prosecution for those who qualify.
Individuals and businesses owing back taxes may apply for the Tax Recovery Program. This includes non-resident and part-year resident individuals, as well as out-of-state businesses.
The following taxes are included in the Tax Recovery Program: Individual Income, Corporate Income, Transaction Privilege (Sales) Tax. (Note: TPT nonprogram city taxes are NOT included. Click here
for a list of the nonprogram cities.)
The taxable periods that are eligible for tax recovery are for those taxes due on an annual basis for any tax year ending before January 1, 2014. For example, an individual that owes back taxes for nonpayment or underpayment of individual income taxes may request tax recovery for tax years 2013 and prior.
Eligible taxable periods for monthly and quarterly filings are for those tax periods ending before February 1, 2015.
Taxpayers may elect to pay the tax liability in full on or before October 31, 2016 or elect to pay the full tax liability in installments over a 24 month period, ending no later than October 31, 2018.
Tax Recovery tax returns MUST be accompanied by the completed Tax Recovery application form, and MUST be received with at least 33% of the full tax liability.