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 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
Decisions Individual Income Tax 201300040-I Taxpayers did not show they were in the business of buying and selling properties. Their general expenses could not be deducted on Schedule C but were only deductible as miscellaneous itemized deductions on Schedule A subject to the 2% limitation. Hearing 06/14/2013
Decisions Individual Income Tax 201200250-I Investigatory expenses incurred in looking for potential investments are not deductible. Taxpayers did not meet their burden to substantiate travel expenses. Hearing 04/24/2013
Decisions Individual Income Tax 201100236-I Expenses incurred in the process of purchasing property are capital expenses that may not be deducted as either business expenses or as expenses incurred for the production or collection of income. Such expenses must be capitalized. Hearing 04/04/2013
Decisions Individual Income Tax 201200106-I Taxpayer did not demonstrate that he engaged in business for profit or that expenses were appropriate and necessary for the business to allow him to deduct the expenses on his Schedule C. Taxpayer also did not demonstrate that alleged contributions were allowable charitable deductions. Director 03/14/2013
Decisions Individual Income Tax 201200214-I The method of determining income taxable by Arizona prescribed by ITR 93 20 is equally applicable whether a married couple, one of whom is a part-year Arizona resident, files separate returns or a joint return. Hearing 03/07/2013
Decisions Individual Income Tax 201200229-I Taxpayer abandoned Arizona residency for tax year at issue. Taxpayer was not subject to Arizona income tax on income earned from non-Arizona sources. Hearing 01/23/2013
Decisions Individual Income Tax 201200224-I Taxpayers did not establish they abandoned Arizona residency when Husband accepted out-of-state employment. Hearing 01/10/2013
Decisions Individual Income Tax 201200114-I Because Taxpayer was an Arizona resident he was required to report income from all sources, including income from the sale of his California business, on his Arizona tax return. Director 01/09/2013
Decisions Individual Income Tax 201200088-I Taxpayers, members of a limited liability company (LLC), could not deduct expenses of the LLC as unreimbursed ordinary and necessary partnership (LLC) expenses that they were not required to pay under the LLC agreement. Hearing 09/28/2012
Decisions Individual Income Tax 201200062-I Taxpayers, investors in real property, could only deduct their investment expenses on Schedule A as miscellaneous itemized deductions and not as business expenses on Schedule C. Taxpayers could not deduct car and truck expenses based on both standard mileage rates and also on actual car expenses. Hearing 09/25/2012
Decisions Individual Income Tax 201200089-I Interest component of the funds a person receives on the redemption of tax liens they purchased are not exempt from Arizona state income tax as interest on a county obligation. Hearing 06/27/2012
Decisions Individual Income Tax 201100294-I Wildlife photographers who had some pictures published in magazines showed that photography activity was engaged in with a profit motive. Hearing 06/13/2012
Decisions Individual Income Tax 201200056-I Taxpayer, a security trader, could deduct his expenses on his Schedule C as business expenses.  However, losses incurred by a security trader are not ordinary losses but capital losses limited to a maximum of $3,000 each year. Hearing 05/24/2012
Decisions Individual Income Tax 201200048-I Distributions from a tribe located in another state received by a member of the tribe who was an Arizona resident was subject to Arizona income tax. Hearing 05/09/2012
Decisions Individual Income Tax 201100302-I Payments received by a spouse pursuant to a temporary family support order that did not provide a fixed sum for child support are considered alimony payments subject to income tax. Hearing 04/17/2012
Decisions Individual Income Tax 201100255-I Taxpayer, a security investor, could only deduct his expenses on his Schedule A, not as business expenses on Schedule C.  Losses incurred by security investors and security traders are not ordinary losses but capital losses limited to a maximum of $3,000 each year. Hearing 04/11/2012
Decisions Individual Income Tax 201100305-I Equitable recoupment, even if available as a defense in an Arizona tax case, could only be used as a defense and cannot be used to recover erroneously paid tax for which a timely claim for refund was not filed. Hearing 03/30/2012
Decisions Individual Income Tax 201100259-I The IRS has specific rules regarding the level of substantiation required for charitable contributions depending on the amount contributed and the nature of the contribution.  Taxpayers failed to adequately substantiate most of their claimed charitable deductions. Hearing 03/27/2012
Decisions Individual Income Tax 201100249-I Book author who had some of his books published showed that his writing activity was engaged in with a profit motive. Hearing 03/13/2012
Decisions Individual Income Tax 201100248-I Contribution to the clean election fund made by Taxpayers’ wholly owned LLC, at their direction and which was accounted for by the LLC as a distribution to Taxpayers, constituted a payment by Taxpayers within the meaning of A.R.S. § 16‑954(B). Hearing 02/22/2012
Decisions Individual Income Tax 201100238-I Audit interest is not a penalty, but compensation to the state for the lost time-value of money received after the due date and cannot generally be waived. Hearing 01/05/2012
Decisions Individual Income Tax 201100228-I Taxpayer showed that his business activities were undertaken with an intent to make a profit so his business loss was deductible. Hearing 12/09/2011
Decisions Individual Income Tax 201100210-I Taxpayer’s payments were made pursuant to a written instrument incident to a divorce decree and were deductible. Hearing 10/28/2011