AZ SB1064

Amends Arizona Revised Statutes Section 43-645 to clarify the treatment of interest on related tax items between trusts, estates, individuals, and related taxpayers.

Allows overpayments from erroneous income computations to be credited against deficiencies for related parties (grantors, beneficiaries, spouses, children) when both the credit period and deficiency period have not expired.

Specifies that no interest shall be assessed on the portion of a deficiency that is extinguished by credit for overpayments, starting from the date the overpayment was made.

Preserves the Department's authority to offset or recoup barred assessments against overpayments.