This bill proposes several updates to current statutes regarding Arizona's income tax forms and instructions. Specifically, it requires the Arizona Department of Revenue (ADOR) to assume that the Legislature will enact amendments to state law that align with the U.S. Internal Revenue Code (IRC) concerning federal adjusted gross income and federal taxable income, particularly in relation to itemized deductions. The bill also establishes a timeline for ADOR to publish supplemental forms and instructions when nonconformity occurs, detailing specific deadlines based on when the nonconformity is enacted.

Additionally, the bill clarifies the definitions of "conformity" and "nonconformity" as they relate to the IRC and emphasizes the Legislature's intent to create a consistent conformity cycle. This cycle aims to provide timely tax forms, allow for legislative review of federal tax law changes, reduce administrative burdens on ADOR, minimize midyear revisions, and preserve legislative authority over tax law modifications. Overall, the bill seeks to streamline the process of tax conformity and improve the efficiency of tax administration in Arizona.

Statutes affected:
Introduced Version: 43-329
Senate Engrossed Version: 43-329
House Engrossed Version: 43-107, 43-329, 42-1123, 42-1125, 43-105