Arizona Supreme Court Finds DOR Didn’t Need to Issue Assessment Before Filing TPT Collection Lawsuit

The Arizona Supreme Court Feb. 23 found that the Department of Revenue (DOR) didn’t need to assess the amount of unpaid Transaction Privilege Tax (TPT) against a responsible person before filing a collection lawsuit. Taxpayers formed a limited liability company (LLC) to run a franchised sandwich shop. The LLC collected money from customers to cover its sales and use tax obligation but failed to remit it to the DOR. The DOR sued Taxpayer as a responsible person for the unpaid TPTs. Taxpayer argued that the DOR failed to assess the unpaid TPTs against him personally within the four-year limitation period, ...