AZ SB1261

Amends A.R.S. § 42-2072 relating to the taxpayer's bill of rights and stays of enforcement actions during offer in compromise proceedings.

Allows taxpayers unable to pay full tax liability to make an offer in compromise for abatement of part of the liability on grounds that the remainder is uncollectible.

Prohibits the Department of Revenue from levying on taxpayers or their assets while an offer in compromise is under consideration, except when collection would be jeopardized by delay.

Establishes that taxpayers may appeal Department decisions to levy during pending offer in compromise to the problem resolution officer, whose decision is final for both parties.