Gain from a §338(h)(10) sale of a subsidiary should be treated as business income

A.R.S. § 43‑1022.2(a) does not allow a married couple filing a joint return to take two separate $2,500 deductions for payments from one spouse’s federal retirement plan.

Pre-tax medical insurance premiums are not allowed as an itemized deduction; discretion to abate interest under A.R.S. § 42-2065 is given to the Department’s Director and not the Hearing Office.

Sourcing of slot machine owner’s receipts for sales factor purposes.  Whether placing machines in casinos was rental of personal property.

Calculation of the enterprise zone credit amount

The proper calculation of the credit for taxes paid to other states or countries for 2002 tax year includes a pro-rata application of Arizona exemptions and deductions to the income from the other state or country.

An offer–in–compromise applies only to the tax liabilities that exist at the time the proposed offer-in-compromise is received, and does not preclude the Department from issuing an assessment on a later discovered tax liability based on unreported income.

Audit Section properly denied Taxpayer’s claim for refund/offset where the Arizona tax return was filed more than four years after the return was due.

Taxation of royalty payments on reservation land.

Taxpayer did not establish abandonment of Arizona residency