{"data":{"id":"us-az/a.r.s.-42-2075","jurisdiction":"us-az","citation":"A.R.S. § 42-2075","heading":"Audit duration; applicability; initial audit contact","body":"A. An audit of a taxpayer's return or claim for refund shall not exceed two years after the date of initial audit contact to the issuance of a notice of proposed deficiency assessment or proposed overpayment, except:\n\n1. An audit of a fraudulent tax return.\n\n2. An audit delayed as the result of the taxpayer's bankruptcy proceeding.\n\n3. An audit in which the department has issued a letter to the taxpayer or the taxpayer's representative citing the potential imposition of the penalty described in section 42-1125, subsection C for the taxpayer's failure or refusal to provide information pursuant to the department's written request.\n\n4. An audit involving proceedings concerning the enforcement or validity of a subpoena or subpoena duces tecum issued pursuant to section 42-1006, subsection C.\n\n5. An audit involving a proceeding under section 42-2056.\n\n6. An audit in which a taxpayer has filed a petition pursuant to section 43-1148, but only in relation to the effect of the petition request.\n\n7. An audit in which the taxpayer provides a written request to extend the audit beyond the two-year period. A request for extension under this paragraph is not a substitute for a waiver of the statute of limitations pursuant to section 42-1104, subsection B, paragraph 9. However, a waiver of the statute of limitations is considered to be a written request to extend the audit beyond the two-year period under this paragraph.\n\nB. This section applies to audits conducted by the department and to audits conducted by the department and cities and towns pursuant to section 42-6002.\n\nC. For the purposes of subsection A of this section, an initial audit contact occurs:\n\n1. For a field audit, on the date of the first meeting between the taxpayer or the taxpayer's representative and a member of the department's audit staff.\n\n2. For a desk or office audit or a review conducted pursuant to section 42-1109, on the date of the first letter to the taxpayer regarding the audit or review. A letter is not considered to be regarding the audit or review if the letter is only requesting one or more of the following:\n\n(a) The required filing of a tax return.\n\n(b) A copy of the taxpayer's federal return.\n\n(c) Required documents that the taxpayer failed to include with the return.\n\n(d) Documentation to resolve an inconsistency within the return or a discrepancy between the return and other information that is received from a third party or that is otherwise already in the department's possession, if the adjustment of the return due to the inconsistency or discrepancy would be considered a nonaudit adjustment under section 42-1108, subsection G or H.\n\n(e) Information that was left out of the taxpayer's return because a submitted form was incomplete.\n\n(f) Replacements for documents that are not legible.","path":["Title 42 Taxation"],"source_url":"https://www.azleg.gov/ars/42/02075.htm","current_through":"2026-09-04","vintage":"2026-08-09","retrieved_at":"2026-09-04T00:49:56Z","sha256":"551d25612b7d86efaa18d8a9de810ced4203bcf56bbc134b024bf58a2146ba37","source_id":"us-az","stale":true,"prev":"us-az/a.r.s.-42-2074","next":"us-az/a.r.s.-42-2076"},"notice":"GroundRules: Original legal text. Not legal advice."}