A. The taxpayer or the taxpayer’s representative shall furnish written findings of the managed audit to the director.

Terms Used In Arizona Laws 42-2303

  • Appeal: A request made after a trial, asking another court (usually the court of appeals) to decide whether the trial was conducted properly. To make such a request is "to appeal" or "to take an appeal." One who appeals is called the appellant.
  • Department: means the department of revenue. See Arizona Laws 42-1001
  • Director: means the director of the department. See Arizona Laws 42-1001
  • Managed audit: means a review and analysis by a taxpayer or the taxpayer's authorized representative of the invoices, checks, accounting records or other documents and information to determine a taxpayer's liability under chapters 3, 5 or 6 of this title or Title 43, Chapter 11. See Arizona Laws 42-2301
  • Managed audit agreement: means a written agreement between the director and taxpayer that consists of an audit plan that requires the taxpayer to review selected revenue, expense and fact records to determine the proper filing method and to calculate the taxpayer's liability under chapter 3, 5 or 6 of this title or Title 43, Chapter 11. See Arizona Laws 42-2301

B. The director shall review the written findings and may examine records and perform other reviews that the director deems necessary to verify that the managed audit substantially conformed to the terms of the managed audit agreement. After performing the review under this subsection, the director shall accept or reject the findings of the managed audit and issue a notice of determination.

C. If the director accepts the managed audit findings, the director shall assess any deficiency or issue any refund that results from the managed audit pursuant to section 42-2304 in the manner described by sections 42-1108 and 42-1118.

D. If the managed audit results in a notice of determination that the taxpayer disputes or if the director rejects the findings of the managed audit, the taxpayer may appeal the notice of determination. The taxpayer has the same appeal rights under this section as if the department conducted the audit.

E. The taxpayer and director may agree to a closing agreement under section 42-1113 to resolve any issues or amounts that are disputed.