AZ SB1364

Establishes a three-year statute of limitations for notices of additional individual income tax due that are not based on federal information, compared to the standard four-year period for other taxes.

Defines "based on federal information" as adjustments necessary because an individual reported different amounts on their federal return than on their Arizona return in areas where the Arizona amount is contingent on federal law.

Allows the Department of Revenue to conduct audits after an assessment is issued for individual income tax changes based on federal information within the three-year period specified in section 42-1104, subsection B, with audit adjustments limited to federal information-based changes.

Permits increases to proposed income tax assessments if the assessment was issued within the three-year period for individual income tax and changes are based on federal information.

Applies to taxable years beginning after December 31, 2013.