Arizona
How Cohen v. United States applies in Arizona: state-specific rules, key cases, and bar exam notes for Tax Law.
Arizona generally follows federal taxation principles, but with specific state-level variations in revenue statutes and tax liabilities. The state recognizes the importance of 'domicile' for tax residency determinations, mirroring the federal rationale in Cohen v. United States regarding income taxation.
In Arizona, income earned by residents is taxable, and the state employs a similar doctrine to the federal approach, where residency and domicile are pivotal in determining taxable income.
Held that the determination of residency for tax purposes must consider both physical presence and intent.
Established that income earned out of state may still be taxable based on the taxpayer's residency status.
Clarified the burden of proof for establishing domicile in tax disputes.
Arizona's approach closely mirrors the federal standards set in Cohen v. United States, particularly in assessing tax liability based on residency and the source of income. However, Arizona also has distinct administrative processes and statutes that govern how these principles are enforced at the state level.
Cohen v. United States principles are frequently tested regarding concepts of residency and taxable income in the Arizona bar exam, particularly in tax law sections.