Tax Clearance Application and Certificate of Compliance for Dissolution/Withdrawal
You can use the Tax Clearance Application form to apply for Certification of Compliance for Letter of Good Standing and/or Dissolution or Withdrawal.
The Arizona Department of Revenue Tax Clearance Certificate is an official document endorsing that an entity is in full compliance with all tax filing and payments with the Arizona Department of Revenue (ADOR) at the time the certification is issued.
The Tax Clearance Certificates are essential for a range of business undertakings, ranging from:
- Employment Purposes
- Applying for a loan
- Reinstating or dissolving an entity
- Sale of business
- When a business is applying for a grant (tax incentive)
Who Can Apply for a Tax Clearance Certificate?
To obtain the certificate, the applicant must be associated with the company as a principal corporate officer. It includes:
- Chief executive officer
- Vice president of tax
- Chief financial officer
- Chief operating officer
- Chief tax officer
- Any other corporate officer who has the authority to bind the taxpayer on matters related to state taxes
If the applicant does not fall into any of these categories, he or she must file a power of attorney with the Arizona Department of Revenue.
What are the Requirements to Obtain a Certificate of Compliance?
To receive the Certificate of Compliance, you must meet the following requirements:
- Tax Clearance Application (Form 10523) is completed and signed.
- Be in compliance with all tax types (individual, transaction privilege tax, withholding, corporate, and partnership), and have no liabilities and/or delinquencies with ADOR.
- File and pay online through AZTaxes.gov.
- If filing under a consolidated tax return, a Letter of Assumption must be submitted from the ultimate parent company.
- If anyone other than an authorized officer (please refer to the authorized officers list above under "Who Can Apply for a Tax Clearance Certificate) is signing the application, Form 285B must be submitted with the Tax Clearance Application.
- If tax exempt, a copy of the Determination Letter from the IRS stating tax exemption is required.
- Dissolution/Withdrawal Only:
- All licenses must be closed.
- File a final corporate income tax return. Business must be done and over with before applying for dissolution/withdrawal.
Note: All liabilities must be paid in full, being on a payment plan does not suffice. Use the checklist for more assistance.
A Tax Clearance Certificate will not remove or release a tax lien. If you need assistance with a Department of Revenue’s tax lien, please contact the Lien Unit at: [email protected] or (602) 716-7805.
Please allow at least 15 business days to process your Letter of Good Standing request (A.R.S. 42-1110) and 30 business days to process your Dissolution or Withdrawal request (A.R.S. 43-1151).
A Certificate of Compliance specific to a request will be sent via USPS and/or email if you provide your email address on the Tax Clearance application.
Once you pay and file through AZTaxes.gov, you are required to wait at least 24 hours to reapply again for a Certificate of Good Standing.
How to Submit the Tax Clearance Application
You can submit the Tax Clearance Application to any of the following sources:
- Email: [email protected]
- FAX: (602) 542- 4771 - Attn: TCA Process
- Mail or Deliver to: Arizona Department of Revenue
Attn: TCA Process
1600 West Monroe
Phoenix Arizona 85007
For more information regarding Certificate of Compliance, you may contact ADOR’s Tax Clearance Unit at (602) 716-6234, Monday through Friday 8:00 a.m. to 4:30 p.m.