(a) Waiver
of joint audit. A taxpayer that does not authorize a joint audit
to be conducted for a tax jurisdiction is subject to audit by that
tax jurisdiction at any time subject to the limitation provisions
provided in Section ___-550.
(b) Tax jurisdiction
acceptance of joint audit. If the Arizona Department of Revenue
intends to conduct an audit of a taxpayer, the cities or towns for
whom a joint audit is being conducted may accept the audit by the
Arizona Department of Revenue or may elect to have a representative
participate, provided that no more than two city or town representatives
in total may participate.
(1) If a city
or town does not accept the audit as a joint audit, the city or
town may not conduct an audit of the taxpayer for forty-two months
from the close of the last tax period covered by the audit unless
an exception applies to that taxpayer pursuant to A.R.S. Section
42-2059.
(2) If a joint
audit is performed by a city or town, the Arizona Department of
Revenue is not prohibited from conducting an audit that does not
violate the provisions of A.R.S. Section 42-2059.
