Legal Research

In this area, you will find topics regarding Decisions, Rulings, Procedures, and Private Taxpayer Rulings from the Arizona Department of Revenue:

 

  • Arizona Administrative Code - the official rules of the state of Arizona are published. The Code is the official compilation of rules that govern state agencies, boards, and commissions.
  • Arizona Revised Statutes - the statutory laws for the state of Arizona.

  • Decisions from the Arizona Department of Revenue Hearing Office and the Director’s Office.
  • Private Taxpayer Rulings/Taxpayer Information Rulings - The department's interpretation of the law or rules only as they apply to the taxpayer and facts contained in the request.
  • Tax Procedure provides procedural guidance to the general public to assist in the implementation of tax laws, administrative rules, and tax rulings.
  • Tax Rulings - Written statement of the Arizona Department of Revenue's position interpreting the Arizona tax law and applying the law to a specific set of facts or a particular tax situation.
  • Draft Documents - In an ongoing effort to interact with and inform the public regarding issues relating to taxation, we would appreciate your written comments on these drafts.  We will review all comments that are received by the noted due dates and make any appropriate revisions before issuing the final documents.  For your convenience, you may submit your comments using the contact information provided on the cover page for each draft document.
  • Conformity to IRC - Each year the Arizona legislature considers whether to amend Arizona Revised Statutes § 43-105 to conform to changes made to the Internal Revenue Code during the prior year.
Document Type Category Document ID Description Tags Decision Date
Decisions Individual Income Tax 201600226-I While a taxpayer using the standard meal allowance (per diem) method does not have to keep records of actual costs, the taxpayer must still establish the time, place and business purpose of the travel. Only one-half of the per diem allowed for meals and incidental expenses may be deducted. Hearing 11/06/2016
Decisions Individual Income Tax 201600097-I Taxpayer is not entitled to deduct as alimony payments representing a division of the retirement accounts of Taxpayer and his ex-spouse. The payments constituted property settlement. Hearing 06/02/2016
Decisions Individual Income Tax 201500296-I Taxpayer is not entitled to a refund of taxes withheld by his employer because Taxpayer did not file a return within four years after the due date of the original return. Hearing 04/28/2016
Decisions Individual Income Tax 201500349-I Taxpayer, an Arizona resident, cannot claim a credit for income taxes paid to California because California allows a credit for residents of Arizona for income taxes paid to Arizona. Taxpayer might still be able to claim a credit in California under Cal. Rev. & Tax. Code § 19311.5 after the Arizona income tax has been paid. Hearing 04/06/2016
Decisions Individual Income Tax 201500045-I Taxpayer is entitled to interest abatement for 45 month period during which the protest was not worked because an auditor was not assigned to the matter. There are no grounds to abate remaining interest or tax. Director 08/31/2015
Decisions Individual Income Tax 201500013-I Taxpayer cannot claim a deduction for a federal credit for mortgage interest if they claimed a mortgage interest deduction rather than a credit on their federal tax return. Director 04/02/2015
Decisions Individual Income Tax 201400106-I Taxpayers could not deduct as Schedule C business expenses amounts they paid for their adult children’s racing activity Hearing 03/24/2015
Decisions Individual Income Tax 201400014-I Arizona subtraction for compensation received for active service as a member of the armed forces of the United States did not apply to compensation from the United States Public Health Service because the Health Service does not fall within the definition of the armed forces. Director 12/29/2014
Decisions Individual Income Tax 201300259-I Taxpayers did not establish they were real estate professionals entitled to an exception to the passive activity loss rule under I.R.C. § 469(c)(7). Hearing 12/09/2014
Decisions Individual Income Tax 201400008-I A Taxpayer who has to repay in a later year amounts he had received and held under a claim of right that was reportable in previous years may deduct the repayment in the year in which it is made and cannot reduce a proposed assessment for 2009 for repayments made in 2011 and 2012, citing Income Tax Procedure (ITP) 95 1. Hearing 10/23/2014
Decisions Individual Income Tax 201400027-I The definition of Arizona gross income for tax year 2009 did not allow the federal exclusion for $2,400 in unemployment compensation because the definition of Internal Revenue Code in the Arizona statutes never included that portion of the federal American Recovery and Reinvestment Act of 2009. Director 09/09/2014
Decisions Individual Income Tax 201400150-I Arizona income tax law did not conform to the federal provision that excluded up to $2,400 of unemployment compensation from federal gross income for tax year 2009. The definition of Arizona gross income for tax year 2009 did not allow the federal exclusion for unemployment compensation. The fact Taxpayers were not aware of the non-conformance is not a basis to abate an otherwise proper assessment. Hearing 08/14/2014
Decisions Individual Income Tax 201300255-I Taxpayer cannot claim a deduction under A.R.S. § 43-1029 (restoration of amount held under claim of right) for wages he received but not repaid. Federal reserve notes are not non-taxable obligations of the United States under 31 U.S.C. § 3124. Hearing 05/20/2014
Decisions Individual Income Tax 201300240-I While for peace officers traveling to or from work is considered in the course and scope of employment under A.R.S. § 23-1021.01(A), it is only for purposes of eligibility for workers’ compensation benefits. A police officer may not deduct commuting expenses associated with driving between home and the police station where the officer was stationed. Hearing 05/20/2014
Decisions Individual Income Tax 201300188-I Taxpayer may not claim a deduction for casualty loss for damage to insured property because a timely insurance claim was not submitted to the insurance company. Hearing 03/28/2014
Decisions Individual Income Tax 201300248-I A taxpayer may choose to use either a standard meal allowance (per diem) or actual meal expenses to calculate the cost of daily meals and incidentals, but cannot claim both. A taxpayer using a standard meal allowance does not have to keep records of actual costs but must still establish the time, place and business purpose of the travel. Meal expenses, whether based on actual expenses or on a standard allowance, are limited to one-half of the allowable amount. Hearing 03/28/2014
Decisions Individual Income Tax 201300252-I Arizona income tax law did not conform to the federal provision that excluded up to $2,400 of unemployment compensation from federal gross income for tax year 2009. Taxpayers were thus required to add back to Arizona gross income the unemployment compensation that was excluded from federal adjusted gross income. Hearing 03/05/2014
Decisions Individual Income Tax 201300114-I Taxpayers did not establish that their activity in a pyramid incentive system was engaged in for profit. Hearing 12/10/2013
Decisions Individual Income Tax 201300167-I The fact that the Internal Revenue Code has not been enacted into positive law does not mean that the tax laws have no effect on state residents. It does not render the underlying enactment invalid or unenforceable. Hearing 11/27/2013
Decisions Individual Income Tax 201300116-I Taxpayers did not establish that their activity of trading in options was substantial, frequent, regular, and continuous so as to be considered traders in securities. Hearing 11/05/2013
Decisions Individual Income Tax 201300106-I Taxpayer was required to report all of his community property income on his return; Taxpayer did not substantiate his unreimbursed employee expenses. Hearing 10/02/2013
Decisions Individual Income Tax 201300068-I The test for research and experimental expenses in connection with a trade or business under IRC § 174 is broader than the test for deducting ordinary and necessary expenses of carrying on a trade or business under IRC § 162. Hearing 09/10/2013
Decisions Individual Income Tax 201300149-I Taxpayers were not entitled to the subtraction for active duty military pay for compensation received from the U.S. Public Health Service. Hearing 08/23/2013
Decisions Individual Income Tax 201300036-I While a barred refund may be used to offset a tax assessment under certain limited circumstances, Taxpayers were not entitled to a refund of taxes not used to offset the assessment. Hearing 07/19/2013