Arizona Slammed at Appeals Court Over IRS Taxing Covid Rebates

Arizona appeared unable to convince a Ninth Circuit panel Thursday that the state has standing to challenge the IRS’s treatment of pandemic rebates residents received in 2023.

“I just don’t see that there’s an allegation of disparate treatment, given that you were treated exactly the same as everybody else in the relevant year,” US Court of Appeals for the Ninth Circuit Judge Andrew D. Hurwitz said during oral arguments.

Although the IRS treated state rebates differently in 2022, the agency made clear that was a matter of limited resources, and wasn’t meant to be binding precedent, he told Arizona Assistant ...