Glossary · Institutions & Instruments
Information letter
In short
ADOR's written answer to a taxpayer's question, short of a formal ruling. If it proves wrong, interest and penalties on the resulting deficiency are abated, provided the deficiency comes from the advice and not from inadequate or inaccurate information the taxpayer supplied. The tax itself is not abated.
In full
A written answer from ADOR that is not a formal ruling is usually called an information letter. It is worth having. Its limit is the part to carry: where the advice proves wrong, A.R.S. § 42-2052(A) bars assessing interest or penalty on a deficiency directly attributable to erroneous written advice furnished in response to a specific request — and the tax itself remains due.
Where the Department declines to issue a ruling, § 42-2101(J) requires it to issue written assistance or advice explaining the refusal and discussing the relevant tax principles.
ADOR's current Letter Rulings page calls the document a taxpayer may request in lieu of a ruling an informal guidance letter. Information letter remains the term used in the Model City Tax Code materials and in practice.
A.R.S. §§ 42-2052, 42-2101(J); ADOR Letter Rulings page