Taxpayer Bill of Rights

Taxpayer Problem Resolution Officer

The City has appointed a Taxpayer Problem Resolution Officer to be an ombudsman for the taxpayer. This Officer has broad powers to intervene on behalf of a taxpayer. Only the City Manager may modify the actions of this Officer. The duties of the Taxpayer Problem Resolution Officer include the following:

• Receives and evaluates complaints about employees of the Tax & Licensing Department.
• Identifies policies and practices which might be barriers to the equitable treatment of taxpayers.
• Provides services to taxpayers whose problems are not resolved through normal channels.
• Negotiates to resolve complex and sensitive taxpayer problems.
• Stops or prohibits the City from taking action against a taxpayer while reviewing the action.
• Represents taxpayer's interests in formulating policies and procedures.
• Monitors taxpayer complaints and their resolution.
• Conducts surveys to evaluate service to taxpayers.

Taxpayer Assistance Orders

The Taxpayer Problem Resolution Officer can issue a Taxpayer Assistance Order. This can temporarily stop an action against a specific taxpayer if it will cause a significant hardship. These orders can also release a tax lien.

Taxpayer Assistance Orders may not be used to contest the merits of a tax liability or as a substitute for the normal protest procedures.

Evaluating Employee Performance

The Tax & Licensing Department will solicit evaluations of employees from taxpayers. Employees may not be evaluated based on the amount of tax they assess or collect.

Penalties and Interest

Several provisions have been adopted to ease the imposition of penalties and interest:

• Interest charges must now be calculated on a daily basis rather than calculating it at the end of the month.
• Penalties are capped at 25% of tax due except in the case of fraud or evasion.
• Several circumstances are listed in the Tax Code which can justify the waiver of penalties.
• Interest can be received on any credit or refund which is authorized. Interest is computed from the time you make your claim to the City.

Reliable Written Information and Answers

Although the City is confident that the oral responses given by its employees are correct, the City is not bound by that oral advice. We encourage you to put your questions in writing, and we will answer you in writing. This will reduce the chances of a misunderstanding.

If you underpay your tax as a direct result of your following the written advice we have given you, an instruction on a tax form, or a City tax ruling, you will not have to pay interest or penalties on that tax.

Private Taxpayer Rulings

For a more formal answer to a specific tax question, you may make a written request for a private taxpayer ruling. If you underpay your taxes because you relied on this ruling, you will not have to pay any additional tax, interest, or penalty unless you did not provide adequate or accurate information. The ruling only applies to taxes that become due after the ruling has been given and only to the taxpayer who has requested the ruling. Rulings may be canceled by the City with a written notice or because of a change in the tax code.

 Private taxpayer rulings are available to the public thirty days after they are issued. Any confidential information, such as the taxpayer's identity, will be removed before the ruling is made public.
To promote consistency among cities, a committee of tax personnel from several Arizona cities has been formed to consider requests for rulings.

Misunderstanding or Misapplication

If the City determines that a certain class of taxpayers has failed to comply with their tax obligations as a result of extensive misunderstanding or misapplication of the tax code, the City may enter into closing agreements with those taxpayers. The City will hold a public hearing at which the affected taxpayers may inform the City as to the extent of the problem.

Extensive misunderstanding or misapplication occurs if the City determines that more than sixty percent (60%) of the taxpayers in a particular class have failed to account for their taxes properly.
These closing agreements may abate some or all of the penalties, interest, and tax that the taxpayers have failed to pay, or it may provide for future taxation only.

Expedited Review of Jeopardy Assessments

Within thirty days of the date a jeopardy assessment is filed against you, you may ask for an expedited review to determine if the jeopardy assessment is reasonable. The City will decide within fifteen days of your request. If the City rules in favor of the jeopardy assessment, you still have thirty days to file a civil action in the appropriate court.

The Appeals Process

If you disagree with the findings of an audit, you may discuss you concerns with the auditor or the auditor's supervisor. You also have the right to file a written request for a hearing. The deadline to request a hearing is forty-five days from the date you receive the assessment.

Hearings are held by a Hearing Officer. The Hearing Officer will make a decision within forty-five days of the end of the hearing. The City has sixty days after the issuance of the hearing decision to issue any adjusted assessment to conform to the hearing decision.

If you prevail, you may be reimbursed for the reasonable fees and costs of presenting your case if the City's position was not substantially justified. You must provide the Taxpayer Problem Resolution Officer a detailed list of the fees within thirty days after you receive an adjusted assessment. The Taxpayer Problem Resolution Officer will determine whether to grant your request within thirty days. Reimbursement for fees and costs may not exceed $20,000 or the actual amount, whichever is less.

If you disagree with the hearing results, you may appeal to the appropriate court within thirty days of receiving the decision. You do not have to pay the tax owed prior to requesting a hearing or to appealing to the court.

Other Provisions

Once we have sent you a proposed assessment (the notice of the amount of tax we have determined you owe) for any particular period, that assessment cannot be increased except in specific limited circumstances. Once the City completes an audit and a tax deficiency has been determined, you liability for the period included in the audit is fixed, and no additional audit may be conducted, except under special limited circumstances.

If you owe taxes, you may ask for an installment plan to pay for them.

If you make payment to the wrong city, you will not have to make duplicate payment to the correct city. The cities will transfer the tax among themselves to correct the error provided you supply them with adequate information and documentation to support the re-allocation.

Your personal and financial information will be kept confidential.