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.
43-107 - Nonconformity in application of internal revenue code; abatement of penalties and interest; definitions
43-107. Nonconformity in application of internal revenue code; abatement of penalties and interest; definitions
A. Notwithstanding sections 42-1123 and 42-1125, no interest or penalty may be assessed on a nonconformity deficiency if all of the following are true for a taxable year:
1. The taxpayer filed a return and paid the taxes due, relying on the department's published forms and instructions.
2. Conformity does not occur.
3. The department supplements its published forms and instructions related to nonconformity and requires the taxpayer to file an amended return.
4. By the extended due date of the next taxable year's return, the taxpayer amends its return to report the nonconformity deficiency and pays the additional tax in the manner prescribed by the department.
B. Notwithstanding section 42-1123, the department shall not pay interest on refunds resulting from an amended return related to nonconformity unless the refund is paid more than sixty days after the due date set forth in subsection A, paragraph 4 of this section or filing date, whichever is later.
C. For the purposes of this section:
1. "Conformity" means an amendment to section 43-105 that results in adoption of the definition of the internal revenue code for the taxable year.
2. "Nonconformity" means either:
(a) Conformity plus another amendment to this title that does not conform to specific provisions of the internal revenue code as defined in section 43-105 for the taxable year.
(b) No amendment to section 43-105 for the taxable year.