Audit interest is not a penalty, but compensation to the state for the lost time-value of money received after the due date and cannot generally be waived.

Contribution to the clean election fund made by Taxpayers’ wholly owned LLC, at their direction and which was accounted for by the LLC as a distribution to Taxpayers, constituted a payment by Taxpayers within the meaning of A.R.S. § 16‑954(B).

Book author who had some of his books published showed that his writing activity was engaged in with a profit motive.

Taxpayer, a security investor, could only deduct his expenses on his Schedule A, not as business expenses on Schedule C.  Losses incurred by security investors and security traders are not ordinary losses but capital losses limited to a maximum of $3,000 each year.

The IRS has specific rules regarding the level of substantiation required for charitable contributions depending on the amount contributed and the nature of the contribution.  Taxpayers failed to adequately substantiate most of their claimed charitable deductions.

Wildlife photographers who had some pictures published in magazines showed that photography activity was engaged in with a profit motive.

Payments received by a spouse pursuant to a temporary family support order that did not provide a fixed sum for child support are considered alimony payments subject to income tax.

Equitable recoupment, even if available as a defense in an Arizona tax case, could only be used as a defense and cannot be used to recover erroneously paid tax for which a timely claim for refund was not filed.

Taxpayer did not use its investment account in its regular trade or business so its investment income was not business income. Reimbursement of shared business expenses from a co-tenant was business income.

Distributions from a tribe located in another state received by a member of the tribe who was an Arizona resident was subject to Arizona income tax.