SB1180

THE CONTEXT: Current law conforms Arizona's income tax calculation to the Internal Revenue Code (IRC) of 1986, as amended, in effect on January 1, 2025, including those

WHAT THE BILL DID: The final vetoed version would prevents DOR from assessing interest or penalties on a nonconformity deficiency on or before the extended return due date for the second year following the close of that taxable year, specifies that if nonconformity occurs, DOR shall supplement the published forms and instructions related to the nonconformity and specifies the dates they are required to be published, and require DOR to also account for conformity changes that affect the calculation of itemized deductions when prescribing income tax forms and instructions.

WHY IT MATTERED: The practical reason for this bill was to make the state tax, regulatory, or economic rule for dor more predictable. It would prevents DOR from assessing interest or penalties on a nonconformity deficiency on or before the extended return due date for the second year following the close of that taxable year, and would also specifies that if nonconformity occurs, DOR shall supplement the published forms and instructions related to the nonconformity and specifies the dates they are required to be published, rather than leave the current rule unchanged.