Arizona § 42-2070 Prohibited audit techniques

Arizona Statutes

§ 42-2070 — Prohibited audit techniques

Arizona § 42-2070

Title 42Arizona Revised Statutes

Ch. 2TAXPAYER PROTECTION AND SERVICES

Art. 2Taxpayers' Bill of Rights

This text of Arizona § 42-2070 (Prohibited audit techniques) is published on Counsel Stack Legal Research, covering Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ariz. Rev. Stat. Ann. § 42-2070 (2026).

Text

The department shall not use financial status or economic reality examination techniques to determine the existence of unreported income of any taxpayer, except in the following circumstances:

1.The director may authorize the use of financial status or economic reality examination techniques in criminal investigations.

2.The director may accept amended returns due after any federal adjustment required pursuant to section 43-327 in which the change or correction was determined by the commissioner of internal revenue or other officer of the United States or other competent authority using financial status or economic reality techniques.

3.The director may authorize a deficiency assessment pursuant to section 42-1108 if the taxpayer fails to report a change or correction pursuant to sec

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The department shall not use financial status or economic reality examination techniques to determine the existence of unreported income of any taxpayer, except in the following circumstances:

1. The director may authorize the use of financial status or economic reality examination techniques in criminal investigations.

2. The director may accept amended returns due after any federal adjustment required pursuant to section 43-327 in which the change or correction was determined by the commissioner of internal revenue or other officer of the United States or other competent authority using financial status or economic reality techniques.

3. The director may authorize a deficiency assessment pursuant to section 42-1108 if the taxpayer fails to report a change or correction pursuant to section 43-327 in which the commissioner of internal revenue or other officer of the United States or other competent authority used financial status or economic reality techniques and the department receives the change or correction through its exchange agreement with the internal revenue service.