Arizona is suing the IRS after the agency imposed federal income taxes on the state’s Family Tax Rebate, Attorney General Kris Mayes announced on Feb. 21.
In a statement on Feb. 21, Ms. Mayes said the lawsuit—filed in federal district court on the same day—argues that taxing the rebates is “unlawful and contrary” to the IRS’s treatment of similar tax rebates in dozens of other states.
