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Effective for taxable year 2018, organizations exempt under Internal Revenue Code § 501 are exempt from Arizona income tax. Those organizations are no longer required to submit Arizona Form 99 or federal Form 990 to the department.
Effective for tax years beginning after December 31, 2017, Nonprofit Medical Marijuana Dispensaries (NMMD) must file Arizona Form 99M. An NMMD must file Arizona Form 99M to meet the filing requirements of A.R.S. § 43-1242. A limited liability company (LLC) that is an NMMD but treated as a disregarded entity must file Arizona Form 99M.
Because NMMDs are not exempt organizations at the federal level, they do not have the option to file the federal return in place of Form 99M. An NMMD that is taxed as an S corporation or a partnership is required to file Arizona Form 120S or Arizona Form 165, as applicable, by the due date of those returns, in addition to filing Form 99M. An NMMD that is organized as a sole proprietorship must also file Arizona Form 140, 140PY, or 140NR, as applicable, by the due date of those returns, in addition to filing Form 99M.
An NMMD may apply for an Arizona extension by filing a completed Form 120EXT by the original due date of the return. The department grants an Arizona extension for filing Form 99M for a period of 6 months. The NMMD cannot use a federal extension to extend the due date of its return. The NMMD must request an Arizona extension on Arizona Form 120EXT.
Organizations are required to pay their tax liability by electronic funds transfer (EFT) if the Organization owes $500 or more for any taxable year beginning from and after December 31, 2020.
An organization may apply to the director for an annual waiver from the electronic payment requirement. The application must be received by December 31 of each year.
The director may grant the waiver if any of the following applies:
To request a waiver, submit Form 292, Electronic Filing and Payment Waiver Application, to the department. Form 292 is available at: https://azdor.gov/forms/other-forms/electronic-filing-and-payment-waiver-application.
NOTE: An organizations who is required to pay by EFT but fails to do so is subject to a penalty of 5% of the amount of the payment not made by EFT. See Arizona Revised Statutes (A.R.S.) § 42-1125(O). For additional information on electronic funds transfer, refer to A.R.S. § 42-1129 and the related Arizona Administrative Code rules (A.A.C. R15-10-301 through R15-10-307) for detailed information.
Effective for taxable years beginning from and after December 31, 2020, the department may grant an extension request for a maximum of 7 months to: