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    Arizona Conformity

    What is your software doing with Arizona conformity? It took the state's legislature until last week to adopt the December changes to the Internal Revenue Code, on which the state income tax generally is based. The governor signed the law Wednesday.

    ATX still does not have an update, which means any return being prepared today will incorrectly add back in sales tax, tuition and teacher classroom expenses. (Many practitioners have been doing an override, expecting the legislative action, and others have been holding returns, pending legislative action, instead of releasing them to clients. This doesn't work well with e-filing.) Lacerte has a "check the box" option for those who want to choose conformity; at this point, who wouldn't? The option also changes the due date in client letters to April 17, which is now law.

    When shopping for software for next year, this might be a good barometer of what kind of service to expect.

    #2
    2 out of 3

    Today's ATX update to Arizona program allows deductions for tuition and teacher expenses -- still adds back sales tax when greater than state income tax and allowed on federal Schedule A.

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