HB 2692 ~ Taxpayer Information Ruling

UPDATE: This bill passed out of the House today and heads to the Senate to begin the process there.

ATRA SUPPORTS HB2692 which maintains a taxpayer’s right to seek tax guidance from the Department of Revenue anonymously. (ATRA stands for Arizona Tax Research Association. Their website is http://www.arizonatax.org)

Basis for ATRA’s Support:

HB2692 continues the practice of allowing taxpayers to request tax guidance anonymously by means of a taxpayer information ruling (TIR) through the taxpayer’s representative. If a TIR is requested, the taxpayer representative is required to provide the same level of information that is required under a PTR. A taxpayer that discloses its identity prior to the publication date of the TIR is provided the same level of protection as a PTR, which is waiver of tax, penalty, and interest for periods prior to revocation or modification of the ruling if DOR changes its position. If the taxpayer chooses to remain anonymous, the ruling is not binding on DOR for abatement of tax, penalty, and interest.

If the taxpayer believes that its identity can be determined by publication of either a PTR or TIR despite redaction, the taxpayer may request that the ruling not be published at the time of its request for a PTR or TIR. If DOR determines that the ruling should be published, the taxpayer may withdraw its ruling request at that time and DOR is not to proceed with a ruling.