A.R.S. § 42-2304 — Interest and penalties; refunds

Interest and penalties; refunds A. Notwithstanding section 42-1125, the director shall not assess any penalties unless the managed audit discloses that the taxpaysented as tax but were not remitted to the state. B. Notwithstanding section 42-1123, the director shall not assess interest if the managed audit results in a deficiency, if the taxpayer pays the tax within forty-five days of receipt of the notice of determination and the taxpayer did not commit the activities described in subsection A of this section. If the entire assessment is paid after forty-five days of the taxpayer's date of receipt of the notice of determination, the taxpayer shall pay interest pursuant to section 42-1123. C. If the findings of a managed audit determine that a refund is due to the taxpayer, the department shall not pay interest to the taxpayer if the refund is issued within forty-five days of the taxpayer’s date of receipt of the notice of determination. If the refund is paid after forty-five days of the taxpayer’s date of receipt of the notice of determination, the department shall pay interest pursuant to section 42-1123. D. For the purposes of subsections B and C of this section, "notice of determination" means either: 1. The director’s notice of determination, if not appealed. 2. The final decision at the highest level of appeal to which the matter is taken, if a notice of determination or rejection is appealed.