Congressman David Schweikert | Congressman David Schweikert Official U.S. Senate headshot
Congressman David Schweikert | Congressman David Schweikert Official U.S. Senate headshot
U.S. Representatives David Schweikert, Juan Ciscomani, and Greg Stanton have come together to challenge the IRS's decision to tax the 2023 Arizona Tax Rebate. In a letter addressed to IRS Commissioner Daniel Werfel, the Arizona representatives expressed their concerns and urged for a reversal of the decision.
“The country is poorer now than it was three years ago, and Arizonans are no different, facing the brunt of financial pressure with supermarket prices now nearly 25% higher than in January 2020, for example. State officials acted in good faith with the reasonably available information to provide more than 700,000 households with much-needed relief from price increases on everyday goods and services," stated the representatives in their letter.
The Congressmen highlighted the discrepancy in the treatment of Arizona's tax rebate compared to similar programs in other states. They pointed out that while tax rebates enacted by 21 states were deemed tax exempt by the IRS, Arizona's rebate was subjected to federal income taxation, causing undue financial strain on Arizonans.
“In December 2023, the IRS relayed its decision orally through a video meeting, providing no written explanation until February 15, 2024, eighteen days after the start of tax season, and only in response to a letter from the Arizona Attorney General challenging the decision," the representatives highlighted in their letter.
The delay in communication and inconsistency in the IRS's rationale have left Arizona taxpayers with an estimated $20.8 million in extra federal taxes, further exacerbating the financial burden on individuals and families in the state.
The representatives urged the IRS to reconsider its determination and provide relief to compliant Arizonan taxpayers who have already filed their 2023 tax returns. They emphasized the need for timely and transparent communication regarding tax policies that directly impact individuals and families across the state.
The full letter addressed to IRS Commissioner Daniel Werfel can be accessed for further details on the representatives' stance on this matter.
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