• IRS says 750,000 Arizonans not entitled to tax refund due to state lawmakers missing deadline • Arizona’s $230 million rebate had no relation to COVID-19 costs, DOJ attorney tells court • Arizona’s rebate program was not needs-based, excluding the poorest residents

The Internal Revenue Service says 750,000 Arizonans are not entitled to a refund of taxes paid on a state rebate if for no other reason than state lawmakers missed the deadline to approve it.

And if that’s not enough, Anthony Sheehan, an attorney from the Department of Justice, is telling the 9th Circuit Court of Appeals that the $230 million the state gave out in 2023 had no relation to helping Arizonans cope with the costs of Covid, the reason the IRS agreed to make payments made by 21 other states exempt from federal

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