Arizona Sampling Bibliography

Revised Statutes

• Arizona Revised Statutes, section 42-1108. Audit; deficiency assessments
  • Subsection A. If a taxpayer fails to file a return required by this title or title 43, or if the department is not satisfied with the return or payment of the amount of tax required to be paid under either title, the department may examine any return, including any books, papers, records or memoranda relating to the return, to determine the correct amount of tax. This examination must occur within the time periods prescribed by section 42-1104 and may be accomplished through a detailed review of transactions or records or by a statistically valid sampling method.
  • Subsection C. If a deficiency is determined and the assessment becomes final, the department shall mail notice and demand to the taxpayer for the payment of the deficiency. The deficiency assessed is due and payable at the expiration of ten days from the date of the notice and demand.
• Arizona Revised Statutes, section 42-1118. Refunds, credits, offsets and abatements

City Tax Codes

• Arizona Revised Statutes, Title 42, Chapter 6 - LOCAL EXCISE TAXES
  • Section 42-6002. Procedures for collection and enforcement applicable to cities and towns
  • Section 42-6051. Definitions
  • Section 42-6052. Municipal tax code commission
  • Section 42-6053. Review and comment on proposed changes to model city tax code.
  • Section 42-6054. Modifications to model city tax code; notice and hearing
  • Section 42-6055. Authority of municipalities to provide retroactive relief from model city tax code.
• Model City Tax Code section 555 (d). The Tax Collector may use any generally accepted auditing procedures, including sampling techniques, to determine the correct tax liability of any taxpayer. The Tax Collector shall ensure that the procedures used are in accordance with generally accepted auditing standards.
• City of Phoenix Tax Code section 14-555
  • Section 14-555 (d). The Tax Collector may use any generally accepted auditing procedures, including sampling techniques, to determine the correct tax liability of any taxpayer. The Tax Collector shall ensure that the procedures used are in accordance with generally accepted auditing standards.
  • Section 14-555 (e). The fact that the taxpayer has not maintained or provided such books and records which the Tax Collector considers necessary to determine the tax liability of any person does not preclude the Tax Collector from making any assessment. In such cases, the Tax Collector is authorized to use estimates, projections, or samplings, to determine the correct tax. The provisions of Section 14-545(b), concerning estimates, shall apply.
• City of Tucson, Business License and Privilege Tax Code, Chapter 19
  • Section 19-555 (d). The tax collector may use any generally accepted auditing standards or procedures.

Department of Revenue Publications

• Taxpayer Bill of Rights

Cases

• Arizona Public Service Company v. City of Phoenix, Arizona Court of Appeals, 2 CA-CIV 5561, 716 P.2d 430, 149 Ariz. 61, CCH-STATE-CASE-APP-CT, 56--89 AZ-TAXRPTR-TB ¶200-695, (January 29, 1986). Appeals court declined to review the propriety of the City's audit sampling technique because the trial court did not base its decision on that evidence
• Prime Refirgeration, Inc. v. Arizona Department of Revenue, Arizona State Board of Tax Appeals, No. 1641-96-S, CCH-STATE-CASE-TAX-CT, AZ-TAXRPTR ¶400-581, (April 7, 1998). Held that although tstatute A.R.S. §42-117(A) authorizes either detail examination of all records or a statistically valid method, the taxpayer and the Department may agree to use block sampling. Held that taxpayer had agreed to a block sample, and taxpayer did not provide compelling evidence that assessment was not valid.