Ariz. Rev. Stat. § 42-1206 – Authority to release levy and return property

A. The department may under prescribed rules release the levy upon all or part of the property or rights to property levied upon if the department determines that such action will facilitate the collection of the liability. Such release shall not operate to prevent any subsequent levy.
B. If the department determines that property has been wrongfully levied upon, the department may return:
1. 1. The specific property levied upon.
2. 2. An amount of money equal to the amount of money levied upon.
3. 3. An amount of money equal to the amount of money received by this state from a sale of such property.
C. Property may be returned at any time. An amount equal to the amount of money levied upon or received from such sale may be returned at any time before the expiration of nine months from the date of such levy.
D. In its discretion and at any time, the department may release a levy or return property levied on if the department determines that any of the following conditions applies:
1. 1. The levy was premature or otherwise in violation of the department's administrative procedures.
2. 2. The taxpayer has entered into an installment payment agreement, unless the agreement provides otherwise.
3. 3. The department's interests are best served by the release or return.