In May of 2023, Arizona’s Republican-led legislature passed significant tax relief for Arizona families in the amount of up to $750 to battle the crushing inflation caused by the Biden Administration. Like other states that passed similar legislation, the IRS deemed such rebates as non-taxable. However, Biden’s IRS has reversed itself and is now attempting to recoup some of those funds, and Senate President Warren Petersen is crying foul.
As families scramble not only to understand the rules but to pay the unexpected bill, Petersen is reaching out to the Biden IRS for clarity. He has made overtures to the Arizona Department of Revenue, the Arizona Attorney General’s Office, and U.S. Senator Kyrsten Sinema to get clarity of the intent and, hopefully, a resolution to the tax demands.
Petersen released a statement last Friday expressing his concern. He stated, “It makes zero sense that the IRS is choosing to hurt Arizona families by taxing a tax rebate,” said President Petersen. “I’m thankful for the help from Senator Sinema’s office in working to get this matter front and center with the IRS and U.S. Treasury. With tax season less than two weeks away, time is of the essence. While litigation likely isn’t the best approach, I appreciate the Attorney General’s office reaching out to us on this matter. I am, however, incredibly disappointed our Governor is again nowhere to be found on an issue that could ultimately cost our citizens tens of millions of dollars. I’m calling on her to not turn a blind eye on this issue, as she did with gas prices last spring, and to work with us on solving this problem for Arizona families.”
Arizona Globe will be tracking developments on this and related issues in the coming weeks.
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