Grand Canyon Times

In response to a recent decision by the Biden Administration's IRS, Senate President Warren Petersen is taking action to protect recipients of the Arizona Families Tax Rebate from federal income tax obligations. The rebate, aimed at providing relief to families affected by inflation, was enacted in May 2023. However, unlike similar rebates in other states deemed non-taxable by the IRS, Arizona's rebate is currently considered taxable.

With tax season starting on January 29, affected families are seeking clarity on their tax responsibilities. Petersen has been in discussions with state and federal officials, including the Arizona Department of Revenue and U.S. Senator Kyrsten Sinema's office, to address this issue.

"It makes zero sense that the IRS is choosing to hurt Arizona families by taxing a tax rebate," stated Petersen. He expressed gratitude for Senator Sinema's assistance but criticized Governor Katie Hobbs for her lack of involvement. "I'm calling on her to not turn a blind eye on this issue," he added.

Petersen plans further engagement with the IRS and U.S. Treasury as part of his efforts to resolve the matter before tax filings begin.