Married taxpayer receiving community property income are jointly and severally liable for the income tax on the income.

Arizona domicile is not abandoned by a Taxpayer taking a job on a cruise ship with no evidence of an intention to abandon Arizona domicile or residence.

Taxpayers are not entitled to a credit for additional research expenses for research funded by a contract or another person.

To take an alimony deduction for payments, the obligation to make payments must necessarily stop on death of the other ex-spouse. Allowance a deduction in prior tax year does not prevent the Department from assessing tax on payments made in a later tax year.

Taxpayers could not maintain a claim for refund for tax years closed by a closing agreement. The closing agreement took the form of two letters, an offer by the Department and the acceptance of the offer by the taxpayers.

Taxpayer’s payments were made pursuant to a written instrument incident to a divorce decree and were deductible.

Taxpayer showed that his business activities were undertaken with an intent to make a profit so his business loss was deductible.

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.

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.

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).