AZ SB1319

Amends section 42-1125 to prohibit penalties under subsection D when a taxpayer voluntarily identifies errors in the original return and files an amended return.

Changes the article heading of title 42, chapter 2, article 5 from "Innocent Spouses" to "Innocent and Injured Spouses."

Adds section 42-2203 allowing taxpayers to apply to the department for protection of their share of overpayments or refunds from setoff for their spouse's past due state taxes, child support, spousal maintenance, or other state obligations.

Requires the department to receive applications for spouse protection in a form and manner prescribed by the department, with the applicant bearing the burden of proving the portion of the refund properly allocable to them.