DOR; income tax forms; conformity

Plain English Breakdown

The bill does not explicitly state that it defines the terms 'conformity' and 'nonconformity', but these definitions are provided by existing statutes.

Arizona Department of Revenue; Income Tax Forms Conformity

This bill requires the Arizona Department of Revenue to assume that state law will conform to certain parts of the U.S. Internal Revenue Code when creating income tax forms and instructions.

What This Bill Does

• Requires ADOR to create income tax forms and instructions assuming that state law will follow federal rules for adjusted gross income or taxable income.
• If the Legislature enacts nonconformity, ADOR must add extra information to the forms and instructions.

Who It Names or Affects

• The Arizona Department of Revenue (ADOR)
• Taxpayers who file state income taxes in Arizona

Terms To Know

Conformity

An amendment to A.R.S. § 43-105 that results in adoption of the definition of the U.S. IRC for the taxable year.

Nonconformity

Either: 1) conformity plus another amendment that does not conform to specific provisions of the U.S. IRC as statutorily defined for the taxable year; or 2) no amendment to the definition of U.S. IRC for the taxable year (A.R.S. § 43-107).

Limits and Unknowns

• The bill assumes that state law will conform to certain federal tax laws but does not guarantee this will happen.
• There is no clear fiscal impact on the state's budget from this legislation.

Official Summary Text

SB1180 - 572R - Senate Fact Sheet

Assigned to
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PASSED BY COW

ARIZONA STATE SENATE

Fifty-Seventh
Legislature, Second Regular Session

AMENDED

FACT SHEET FOR
S.B. 1180

income tax forms;
conformity

Purpose

Requires the
Arizona Department of Revenue (ADOR), when prescribing income tax forms and
instructions, to assume that the Legislature will enact an amendment to state
law that results in conformity to the provisions of the U.S. Internal Revenue
Code (U.S. IRC), but only to the extent those provisions affect federal
adjusted gross income (FAGI) or federal taxable income.

Background

The Arizona
Legislature periodically updates the statutory definition of the U.S. IRC to
include any federal provisions that became effective in the preceding calendar
year as a means of paralleling the computation of Arizona income tax and other
statutory references throughout the Arizona Revised Statutes to the amended
U.S. IRC. Tax conformity with the U.S. IRC is deemed necessary because the
calculation of Arizona corporate income tax liability begins with federal
taxable income. Similarly, FAGI is the starting point for individual income tax
assessment.

Conformity
means
an amendment to
A.R.S.
� 43-105
that results in adoption of the definition of the U.S. IRC for the
taxable year.
Nonconformity
means either: 1) conformity plus another
amendment that does not conform to specific provisions of the U.S. IRC as statutorily
defined for the taxable year; or 2) no amendment to the definition of U.S. IRC for
the taxable year (
A.R.S.
� 43-107
).

By adopting the
income tax statutes, the Legislature declared its intent to adopt the
provisions of the U.S. IRC relating to FAGI and federal taxable income, subject
only to modifications contained in state law (
A.R.S.
� 43-102
).

All tax returns
required by state law must be in a form that is prescribed by ADOR and ADOR
must prepare blank return forms and furnish the forms on request (
A.R.S.
� 43-323
).

There is no
anticipated fiscal impact to the state General Fund associated with this
legislation.

Provisions

1.

Requires ADOR, when prescribing income tax forms and instructions, to
assume that the Legislature will enact an amendment to state law that results
in conformity to the provisions of the U.S. IRC, but only to the extent those
provisions affect FAGI or federal taxable income.

2.

Stipulates that, if the Legislature enacts nonconformity, ADOR must
supplement the published forms and instructions related to the nonconformity.

3.

Defines terms.

4.

Becomes effective on the general effective date.

Amendments Adopted by
Committee of the Whole

�

Specifies that ADOR, when updating the annual tax forms and instructions,
must assume that the Legislature will conform to the U.S. IRC, but only to the
extent those provisions affect federal adjusted gross income or federal taxable
income.

Senate Action

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Prepared by Senate Research

February 24, 2026

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Current Bill Text

SB1180 - 572R - S Ver

Senate Engrossed

DOR; income tax
forms; conformity

State of Arizona

Senate

Fifty-seventh Legislature

Second Regular Session

2026

SENATE BILL 1180

AN
ACT

amending title 43, chapter 3, article 2,
Arizona Revised Statutes, by adding section 43-329; relating to income
tax returns.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it
enacted by the Legislature of the State of Arizona:

Section
1.
1. Title
43, chapter 3, article 2, Arizona Revised Statutes, is amended by adding
section 43-329, to read:

START_STATUTE
43-329.

Returns; form and instruction preparation; conformity assumption;
definitions

A. Pursuant to section
43-102, for the purposes of prescribing the forms and instructions
required for a taxpayer to file a return pursuant to this title, the department
shall assume that the legislature will enact an amendment to section 43-105
that results in conformity to the provisions of the internal revenue code
, but only to the
extent those provisions
affect federal adjusted gross income
or federal taxable
income
.�
If the legislature enacts nonconformity, the department shall supplement the published
forms and instructions related to the nonconformity.

B. For the purposes of
this section, "conformity" and "nonconformity" have the
same meanings prescribed in section 43-107.
END_STATUTE