The Attorney General’s Office in Arizona wrote a letter to the Internal Revenue Service to address the recent decision of the agency to tax the income tax rebate of Arizonians.
Arizona Income Tax Rebate
Last year, around 750,000 families in Arizona received state income tax rebates that were made through paper checks and direct deposits. These families did not expect that the payments would be included in the taxable income after the decision made by the Internal Revenue Service.
In a published article in TUCSON, Attorney General Kris Mayes said Thursday that she wrote a letter to the Internal Revenue Service. She also shared during a press conference that if the agency will not back off, she soon sue the IRS. They also need the answers of the agency before the April 15 deadline to file their federal returns.
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AG’s Office Argument
According to an article published in AZ Capitol Times, Mayes wrote in her letter, “If we are not able to satisfactorily resolve this issue by then, I will consider all possible avenues for potential legal action on behalf of the state and its taxpayers in advance of this year’s filing deadline.”
Furthermore, the Attorney General wants an answer before February 6. She also told Werfel the IRS previously concluded that rebate proceeds from programs in other states were not taxable.
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