ABC Taxes, Tips & Tools

AZ tax­pay­ers beware.  On April 27, 2010 after the fil­ing dead­line with­out exten­sions passed, the Ari­zona leg­is­la­ture decided not to con­form to all the tax law changes made by the Fed­eral gov­ern­ment in 2009.  Areas of non con­for­mity are:

Unem­ploy­ment: you need to ADD the $2400 the fed­eral gov­ern­ment exempted from gross income back into your Ari­zona income and pay the addi­tional tax.

Auto­mo­bile Sales Tax deduc­tion: you need to REMOVE the auto­mo­bile sales tax from your deduc­tions, which will increase your income and you may owe addi­tional tax.

Haiti Con­tri­bu­tions made between Jan­u­ary 11 and before March 1, 2010 that were taken as a char­i­ta­ble deduc­tion in 2009.  These con­tri­bu­tions will be eli­gi­ble char­i­ta­ble deduc­tions on your Ari­zona taxes in 2010.  Again this will increase your 2009 income and you may owe addi­tional tax.

Dis­charge of Indebt­ed­ness (DOI) Income From Busi­ness Indebt­ed­ness Dis­charged by the Reac­qui­si­tion of a Debt Instru­ment–the feds allowed it to be added rat­ably over 5 years, AZ did not. 

Orig­i­nal Issue Dis­count (OID) on Reac­qui­si­tion of Debt Instru­ment–the feds allowed the income to be deferred, AZ did not. 

Spe­cial Fed­eral Net Oper­at­ing Loss (NOL) Car­ry­back Rules for 2008 and 2009 Losses-the feds allowed a spe­cial longer car­ry­back period of 3, 4, or 5 years, instead of 2, AZ did not. 

If you claimed any of these spe­cial deduc­tions or fol­lowed these spe­cial rules when you timely filed your AZ taxes for 2009, you need to file an amended Ari­zona tax return and pay more tax.  For­tu­nately for most tax­pay­ers the Ari­zona Depart­ment of Rev­enue (AZ DOR) has released a spe­cial tax form to deal with indi­vid­ual tax­payer non­con­for­mity issues OTHER THAN NOL non­con­for­mity.  This tax form is lim­ited only to indi­vid­ual tax form non­con­for­mity issues which makes it sim­pler to com­plete.  If a tax­payer com­pletes the new tax form and pays all the tax due by Octo­ber 17, 2011 the tax­payer will not owe any addi­tional tax. 

 The fol­low­ing are links to the new form and instruc­tions:
Click here for Ari­zona Form 140X-NC.
Click here for Ari­zona Form 140X-NC instruc­tions.

You will need Adobe Acro­bat Reader ver­sion 7 or higher to view and print the form and instruc­tions. Adobe Acro­bat reader can be down­loaded for free from the Adobe.com web­site.  Note: ABC LLC is not afil­i­ated with the AZ DOR or Adobe.com.  These links will take you to their web­sites and you will be sub­ject to their poli­cies.  We do not know what their poli­cies are.

As always, small busi­ness ser­vices and tax­a­tion are our busi­ness.  If you need help with this issue or any oth­ers, Please give Art & Busi­ness Con­sult­ing a call.  We would love to engage you as a client.

The usual dis­claimers: Although ABC has made every effort to insure the accu­racy of Taxes, Tips and Tools, mis­in­for­ma­tion, dis­in­for­ma­tion, changes, mis­takes, typos and hack­ers hap­pen, there­fore Art & Busi­ness Con­sult­ing LLC takes no respon­si­bil­ity for any action taken or results based on the infor­ma­tion sup­plied here in. The con­tent of this blog gen­er­ally applies to busi­ness and indi­vid­ual tax­a­tion in the United States of Amer­ica.  Inter­nal Rev­enue Ser­vice Cir­cu­lar 230 Dis­clo­sure:  As pro­vided for in Trea­sury reg­u­la­tions, advice (if any) relat­ing to fed­eral taxes that is con­tained in this com­mu­ni­ca­tion (includ­ing attach­ments) is not intended or writ­ten to be used, and can­not be used for the pur­pose of (1) avoid­ing penal­ties under the Inter­nal Rev­enue Code or (2) pro­mot­ing, mar­ket­ing or rec­om­mend­ing to another party any plan or arrange­ment address herein.  Art & Busi­ness Con­sult­ing LLC cur­rently does not have a cer­ti­fied pub­lic accoun­tant, human resource spe­cial­ist, finan­cial plan advi­sor or an attor­ney on staff; this infor­ma­tion is purely for edu­ca­tional pur­poses and not to be con­strued as legal or finan­cial advice. Art & Busi­ness Con­sult­ing LLC and its employ­ees, mem­bers and asso­ciates are not engage to prac­tice law; you always should dis­cuss legal mat­ters with your attor­ney before talk­ing to any­one else.

Tags: 140X-NC, Arizona nonconformity, automobile sales tax deduction, AZ, discharge of indebtedness, DOI, haiti charitable contribution, net operating loss carry back rules, NOL, OID, original issue discount, reacquisition of debt instrument, special 2009 tax rules, tax form, tax form instructions, unemployment, what to do, when are the taxes due, when is the form due

This entry was posted on Thursday, August 12th, 2010 at 11:30 pm and is filed under Individual Taxes. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.