AZ SB1385

Allows taxpayers to bypass the hearing process before the office of administrative hearings and appeal directly to the state board of tax appeals or tax court after conferring with a designated appeals officer, with department having 45 days to schedule the meeting or allowing immediate bypass.

Expands limited liability company disclosure provisions in confidential tax information rules to allow disclosure to any member or manager, and adds government entities and department of education as authorized recipients of confidential tax information under certain conditions.

Requires the department of revenue to obtain written taxpayer consent before disclosing confidential income tax or withholding tax information to the office of administrative hearings.

Restricts the ability of the department to increase proposed tax assessments except when taxpayer materially misrepresents facts, fails to disclose material information, or fails to provide requested information.

Applies amendments retroactively to tax disputes filed on or after December 31, 2016, and makes section 42-2003 amendments effective only if Laws 2017, chapter 139 is approved by voters or fails to be referred for a referendum.