![Tyson Foods Plant [Photo: Food Manufacturing]](https://southarkansassun.com/wp-content/uploads/2023/08/iStock_1185520857__1_.5e441daa51cca-600x337.jpg)
![Silverado Senior Living Management Inc. [Photo: Los Angeles Times]](https://southarkansassun.com/wp-content/uploads/2023/10/download-6-4-600x337.jpg)
![China's Wuhan Institute of Virology [Photo: Nature]](https://southarkansassun.com/wp-content/uploads/2023/09/d41586-021-01529-3_19239608-600x337.jpg)
Attorney General Kris Mayes files a lawsuit against the IRS due to issues regarding the Arizona Family Tax Rebate.
As Attorney General Kris Mayes filed a lawsuit against the IRS, she further stated that the rebate is supposed to help people and should not be taxed. (Photo: KTAR News)
Attorney General Kris Mayes’ Action
Arizona Attorney General Kris Mayes is suing the IRS because they are making Arizonans pay federal taxes on the Arizona Family Tax Rebate, despite similar rebates in other states not being subject to federal taxes. The rebate involved in Attorney General Kris Mayes’ lawsuit is $250 for each dependent under 17 and $100 for each dependent 17 or older, capping at $750.
Attorney General Kris Mayes argues that the rebate was meant to help Arizonans during the COVID-19 pandemic and should not be taxed. The Arizona Department of Revenue advises taxpayers to follow current guidelines and include the rebate in their federal income report, deducting it from their state report.
According to a published article by SmartNews, if the lawsuit filed by Attorney General Kris Mayes is successful, the Attorney General’s Office will ask the IRS to return any unlawfully taken money.
An Unfair And Arbitrary Decision
In a published article by Arizona Mirror, Attorney General Kris Mayes argued that the decision was unfair and arbitrary, as the Arizona rebates were targeted toward taxpayers with dependents who met specific income criteria.
The IRS did not provide a clear explanation for their decision until February, leading Attorney General Kris Mayes to file the lawsuit. Attorney General Kris Mayes claims that taxing the rebates would result in Arizona losing millions of dollars in federal taxes that would have stayed in the state, causing a decrease in sales tax revenue for state and local governments.
