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Arizona Tax Recovery Program


Arizona's Tax Recovery Program provides amnesty for taxes from 2004 to 2009:

Similar to other amnesty programs, the Arizona Tax Recovery Program is designed to collect tax revenue in a short period of time by providing a waiver of penalties in exchange for prompt payment of any outstanding tax obligations. Taxpayers will need to file original or amended returns to establish the correct amount of tax and pay any tax and interest by the program's deadline. The Arizona Department of Revenue will either waive or reduce penalties. Taxpayers will also waive any appeal rights and cannot seek any refund for amounts previously paid.

When the Tax Recovery Program Will be Held:

Arizona's Tax Recovery Program will run from September 1 to October 1, 2011. To take full advantage of the program, taxpayers will need to submit their completed application and pay in full any tax and interest by the October 1, 2011, deadline.

Who Can Apply and Taxes Eligible for Amnesty:

Any individual or business that has an outstanding tax obligation from the years 2004 through 2009 can participate in the Tax Recovery Program. Taxes eligible for the amnesty program are "any tax administered or collected by the Department of Revenue on behalf of [Arizona] or a county except estate tax and ad valorem property taxes" (Arizona Senate Bill 1616, section 11).

Relief Provided:

The Arizona Department of Revenue will waive some or all penalties and will set a reduced interest rate in exchange for full payment by October 1, 2011.


Taxpayers will need to submit an amnesty application, file any original or amended tax returns, and pay in full tax and interest the amnesty deadline. Taxpayers will also be required to waive any rights to appeal, and will be precluded from any refunds for amounts previously paid for the tax years covered by the amnesty.

What if I don't participate:

Taxpayers risk being discovered by Arizona's normal enforcement processes.

Program does not apply to:

Individuals or businesses who are currently under audit or who have completed an audit. Taxpayers who previously been the subject of a criminal investigation resulting in a conviction, guilty plea or plea of non contest are precluded from participating in the Tax Recovery Program. Taxpayers who have criminal investigations pending as of January 1, 2011, are also ineligible to participate.


Currently, the best information is found in the legislative fact sheet for AZ SB 1616. The Tax Recovery Program is authorized by Arizona Senate Bill 1616. The Arizona Department of Revenue has not (as yet) posted any further information or documents. I will post additional links as they become available.

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