Posts Tagged ‘automobile sales tax deduction’

Arizona Non Conformity — What Do You Do?

Thursday, August 12th, 2010

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.