(a) Once the Tax
Collector completes an examination authorized by Section ___-555 and
a written notice of the determination of a deficiency has been issued
to the taxpayer pursuant to Section ___-545(a) or ___-555(f), the
taxpayer's liability for the time period subjected to the examination
is fixed and determined, and no additional audit or examination may
be conducted by the Tax Collector with respect to such time period
except under the following circumstances.
(1) If a taxpayer
files a claim for refund under Section ___-560, the Tax Collector
may conduct an examination limited to the issues presented in the
refund claim.
(2) If the taxpayer
failed to disclose material information during the initial examination,
falsified books or records, or otherwise engaged in conduct which
prevented the Tax Collector from conducting an accurate examination.
The applicability of this subsection, and the Tax Collector's right
to proceed thereunder, may be raised and contested by the taxpayer
in a subsequent administrative review brought pursuant to Section
-570.
(b) An audit or
examination conducted by any other taxing jurisdiction will not preclude
the Tax Collector from conducting an audit or examination for the
same time period.
(c) If the Tax
Collector issues a notice of deficiency pursuant to either Section
-545(a) or Section ___-555(f), the Tax Collector may not increase
the proposed deficiency except in one or more of the following circumstances:
(1) the taxpayer
made a material misrepresentation of fact.
(2) the taxpayer
failed to disclose a material fact.
(3) the Tax
Collector submitted a written request for information prior to issuance
of the assessment, and the taxpayer, despite possessing or having
access to such information, failed to provide it within 60 days
as required by Section ___-555(c).
(4) after issuing
the notice of determination of deficiency but before the deficiency
became final, the Arizona Tax Court, Court of Appeals or Supreme
Court issued a decision, the applicability of which causes the deficiency
initially proposed to increase.
