PETITION FOR REVIEW OF STATE TAX ASSESSMENT

(Arizona Tax Court / State Board of Tax Appeals)

[// GUIDANCE: Select either the Arizona Tax Court (a division of the Maricopa County Superior Court) or the State Board of Tax Appeals, not both. Delete the inapplicable bracketed language throughout.]

TABLE OF CONTENTS

1. Document Header
2. Definitions
3. Operative Provisions
   3.1 Jurisdiction, Venue & Timeliness
   3.2 Statement of Material Facts
   3.3 Issues Presented & Grounds for Relief
   3.4 Requested Relief
4. Representations & Warranties
5. Covenants & Restrictions
6. Default & Remedies
7. Risk Allocation
8. Dispute Resolution
9. General Provisions
10. Execution Block
11. Verification
12. Certificate of Service

1. DOCUMENT HEADER

IN THE [ARIZONA TAX COURT, MARICOPA COUNTY SUPERIOR COURT, TAX DIVISION]
— OR —
IN THE STATE BOARD OF TAX APPEALS

Case No.: ____

Petitioner: [TAXPAYER LEGAL NAME], an [Arizona/Nevada/etc.] [corporation/LLC/individual] (“Petitioner”)

v.

Respondent: ARIZONA DEPARTMENT OF REVENUE (“Department”)

PETITION FOR REVIEW OF STATE TAX ASSESSMENT AND APPLICATION FOR COLLECTION STAY

Effective Date of Filing: [MM/DD/YYYY]

2. DEFINITIONS

For ease of reference, the following capitalized terms are used throughout this Petition:

“Assessment” – The final notice and demand for payment issued by the Department dated [MM/DD/YYYY], Assessment/Invoice No. [__].

“Board” – The State Board of Tax Appeals of Arizona.

“Code” – Title 42 of the Arizona Revised Statutes and the regulations promulgated thereunder, collectively.

“Department” – The Arizona Department of Revenue and its authorized agents.

“Final Decision” – The Department’s written decision following administrative review dated [MM/DD/YYYY].

“Petitioner” – The above-named taxpayer contesting the Assessment.

“Tax Court” – The Arizona Tax Court, a division of the Maricopa County Superior Court.

3. OPERATIVE PROVISIONS

3.1 Jurisdiction, Venue & Timeliness

1. This Petition is brought pursuant to the applicable provisions of the Code authorizing judicial review of a contested state tax assessment.
2. Venue is proper in the [Tax Court / Board] because the Assessment arises under Arizona state tax law and Petitioner has elected this forum pursuant to the statutory election of remedies scheme.
3. The Petition is timely. The Final Decision was issued on [MM/DD/YYYY], and this Petition is filed within the statutory limitations period of [__] days thereafter.
4. All administrative prerequisites to filing have been satisfied or are otherwise excused.

3.2 Statement of Material Facts

1. On [MM/DD/YYYY], the Department issued the Assessment alleging tax, penalties, and interest in the aggregate amount of $[__] for the period [Tax Period].
2. Petitioner timely protested and requested administrative review.
3. Following the administrative hearing, the Department issued the Final Decision upholding the Assessment in whole or in part.
4. Petitioner disputes both the legal and factual bases for the Assessment, as more fully set forth below.

3.3 Issues Presented & Grounds for Relief

1. Whether the Department incorrectly re-characterized certain receipts as taxable [transaction privilege tax/gross income/etc.].
2. Whether the Department failed to apply applicable exemptions under [cite article of Code, if certain].
3. Whether penalties were improperly assessed in light of reasonable cause and the absence of willful neglect.
4. Whether interest was improperly compounded or calculated.
   [// GUIDANCE: Add or delete issues as applicable.]

3.4 Requested Relief

Petitioner respectfully requests that the [Tax Court / Board]:

a. Vacate or modify the Assessment to reflect a tax liability not exceeding $[cap at disputed amount].
b. Abate all penalties and adjust interest accordingly.
c. Enter an order staying collection activities pending final resolution (“Collection Stay”).
d. Award statutory costs and reasonable attorneys’ fees as permitted.
e. Grant such other and further relief as equity and good conscience require.

4. REPRESENTATIONS & WARRANTIES

4.1 Petitioner warrants that the facts alleged herein are true and correct to the best of Petitioner’s knowledge, information, and belief formed after reasonable inquiry.

4.2 Petitioner represents that all books, records, and documents relevant to the tax periods at issue have been preserved and will be produced upon lawful request.

4.3 These representations survive the dismissal, settlement, or final adjudication of this matter.

5. COVENANTS & RESTRICTIONS

5.1 Petitioner shall:

a. Promptly supplement any factual allegation that becomes inaccurate or incomplete.
b. Provide the Department with access to relevant records, subject to privilege objections.
c. Comply with all procedural orders issued by the [Tax Court / Board].

5.2 Petitioner shall not:

a. Transfer or encumber assets outside the ordinary course of business with the intent to defeat collection of any final, uncontested tax liability.
b. Publicly disclose confidential Department return information obtained through discovery except as allowed by law.

6. DEFAULT & REMEDIES

6.1 Events of Default
a. Failure of Petitioner to comply with discovery orders or to appear at scheduled proceedings.
b. Failure of the Department to honor an agreed-upon collection stay.

6.2 Notice & Cure
The non-defaulting party shall provide written notice specifying the default and a [10]-day period to cure.

6.3 Remedies
a. Upon Petitioner’s uncured default, the [Tax Court / Board] may dismiss the Petition with prejudice.
b. Upon the Department’s uncured default, Petitioner may seek sanctions and enforcement of the Collection Stay.
c. The prevailing party is entitled to an award of reasonable attorneys’ fees and costs as allowed by law.

7. RISK ALLOCATION

7.1 Burden of Proof
Consistent with Arizona law, Petitioner bears the burden of demonstrating by a preponderance of the evidence that the Assessment is erroneous or excessive.

7.2 Limitation of Liability
Under no circumstance shall the Department’s monetary exposure exceed the amount of the disputed tax, corresponding interest, and statutorily authorized fees and costs (“Tax Assessment Cap”).

[// GUIDANCE: The Department is a sovereign entity; contractual indemnification by the State is generally unavailable. The above limitation mirrors statutory reality.]

8. DISPUTE RESOLUTION

8.1 Governing Law
This matter is governed by Arizona state tax law, the procedural rules of the [Tax Court / Board], and, where applicable, the Arizona Rules of Civil Procedure.

8.2 Forum Selection
Exclusive forum lies with the Arizona [Tax Court / Board], subject to further appeal to the Arizona Court of Appeals and the Arizona Supreme Court, as provided by law.

8.3 Limited Alternative Dispute Resolution
The parties may, by mutual written consent, engage in non-binding mediation with a qualified tax mediator. Participation does not waive any statutory rights or deadlines.

8.4 Jury Waiver
To the extent a jury trial might otherwise be available, the parties knowingly and voluntarily waive the same; tax appeals in Arizona are tried to the court.

8.5 Injunctive Relief (Collection Stay)
Petitioner requests, and the Department shall honor, a statutory stay of enforced collection activities (excluding the accrual of interest) pending final disposition of this appeal.

9. GENERAL PROVISIONS

9.1 Amendments
This Petition may be amended only by order of the [Tax Court / Board] or as permitted by the applicable procedural rules.

9.2 Assignment
Neither party may assign rights or delegate duties arising under this Petition without prior written consent of the other party, except as mandated by law.

9.3 Severability
If any provision is held invalid, the remainder shall remain in full force and effect to the maximum extent permitted.

9.4 Integration
This Petition, together with all exhibits and procedural filings, constitutes the complete statement of Petitioner’s claims.

9.5 Electronic Signatures
Signatures transmitted via electronic means shall be deemed originals for all purposes permitted under Arizona law.

10. EXECUTION BLOCK

Respectfully submitted this ___ day of ____, 20__.

[ATTORNEY NAME], Esq.
[Arizona Bar No. _____]
[LAW FIRM NAME]
[Address]
[Telephone] | [Email]
Counsel for Petitioner

Authorized Representative of Petitioner
[Name / Title]

[// GUIDANCE: Notarization is not required for filing, but include a verification (see below).]

11. VERIFICATION

I, [Name], being duly sworn, depose and say that I am the [Title] of Petitioner; that I have read the foregoing Petition and know the contents thereof; and that the same is true to the best of my knowledge, information, and belief.

[Name]

Subscribed and sworn to before me on this ___ day of ____, 20__.

Notary Public
My Commission Expires: ____

12. CERTIFICATE OF SERVICE

I hereby certify that on the ___ day of ____, 20__, I caused a true and correct copy of the foregoing Petition to be served upon the Arizona Department of Revenue, Legal Services Section, at [Department Address], via [method of service], and filed the same with the Clerk of the [Tax Court / Board].

[ATTORNEY NAME]

[// GUIDANCE:
1. Confirm all statutory deadlines before filing (e.g., generally 90 days from the Department’s final decision to appeal).
2. File requisite filing fee or request a fee waiver.
3. Concurrently file a Motion for Collection Stay if local practice requires a separate motion.
4. Attach the Assessment, Final Decision, and all relevant correspondence as exhibits.]