Administrative:
Arizona: New Law Permits and Specifies Procedures for Issuing Various Administrative Rulings
H.B. 2879, signed by gov. 5/7/21. New law permits the Arizona Department of Revenue (Department) to issue certain draft rulings, procedures, notices and administrative announcements (collectively, “administrative rulings”) that apply to tax laws and regulations and outlines new underlying procedures for issuing these administrative rulings. Among these procedures, the legislation generally deems an administrative ruling final and effective 30 days after it is released for public comment and review, unless the Department withdraws the administrative ruling; and allows the Department to amend a draft of it in response to public comments received during the 30-day period. The legislation also provides that a court must “decide all questions of law without deference to any determination that is made by the Department” in these administrative rulings.
Additionally, the new law modifies the statutorily prescribed process for the Department to respond to requests for a private taxpayer ruling or taxpayer information ruling. Under the new law, within 30 days after receiving a written request for a private taxpayer ruling or taxpayer information ruling, the Department must meet with the requestor to discuss the facts and circumstances pertaining to the request, unless the requester waives the meeting. The new law generally requires the Department to issue private taxpayer rulings or taxpayer information rulings within 90 days after receiving a written request, unless the Department and the requestor agree to delay the ruling. The Department also may decline to issue a private taxpayer ruling or taxpayer information ruling, but if it does, it must explain in writing its reasons for doing so. Furthermore, when applicable, the legislation includes various other procedures that must be followed prior to the Department’s issuance of a final private taxpayer ruling or taxpayer information ruling.
See recently issued Multistate Tax Alert for more details on this new law, and please contact us with any questions.
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