US Supreme Court Agrees to Review Constitutionality of Arizona Private School Tuition Tax Credit

The United States Supreme Court has agreed to review the constitutionality of an Arizona tax credit  that has been battling its way through the Arizona state court system for nearly a decade.  The private school tuition tax-credit allows taxpayers to take a dollar-for-dollar tax credit of up to $1000 for donations made to non-profit organizations called “school tuition organizations.” The non-profits collect the money and distribute as scholarships.

At issue is the fact that many of these non-profit organizations are closely linked with a certain religion, and give scholarships primarily for schools tied to that religion. The Arizona Republic has conducted a study and found that over 90% of the funds collected in 2008 and 2009 went to private schools with a religious affiliation.

Those opposed to the tax credit believe that, even though the Supreme Court has ruled in favor of private school tax credit in other states, they may strike down the Arizona law because it effectively distributes most of the fund to schools with a religious affiliation.

The Supreme Court may declare the tax credit constitutional, ending the battle, or it may find that there are issues of constitutionality and send it back to a lower court to be re-heard. A decision is expected in the Spring of 2011.

At The Pew Law Center, PLLC, we understand that if you do run into tax problems with the IRS, it can be overwhelming.  Whether you owe back taxes, haven’t filed taxes for several years, or have received an audit or wage garnishment notice from the IRS, the attorneys at The Pew Law Center, PLLC can help you or your business with these and any other federal and state tax problems.

We are a dedicated debt relief law firm. We help people from Phoenix, Mesa, Gilbert, Queen Creek, Chandler, Scottsdale, Apache Junction, Tempe and throughout Arizona work through tough tax problems or file for bankruptcy every day. We can help stop the debt cycle and give you relief from your overwhelming, burdensome, and crushing tax problems. Please don’t wait another moment. Call us right away – our attorneys will help get you the fresh start you deserve.