Conformity to IRC

Tax Conformity FAQs

2021 Conformity

The instructions issued with the 2021 Arizona tax returns are correct. For a complete list of the additions and subtractions that apply to 2021, see the 2021 instructions for Arizona Form 140 (individuals) or Arizona Form 120 (corporations). The statutory additions can be found in A.R.S. § 43-1021 (A.R.S. § 43-1121 for corporations) and the subtractions in A.R.S. § 43-1022 (A.R.S. § 43-1122 for corporations)

Please Note:

2021 conformity includes the federal Infrastructure Investment and Jobs Act (2021) and the federal PPP Extension Act of 2021. The income tax provisions of the federal American Rescue Plan of 2021 were already adopted by Arizona as part of the 2020 conformity bill. In addition to 2021 conformity, the 2022 income tax rates were finally settled after two court decisions and changes made during the 2022 Arizona legislative session. For tax year 2022, the individual income tax rates are 2.55% and 2.98%. The estate and trust income tax rate for tax year 2022 is also 2.55% and 2.98%. The small business income tax rate for tax year 2022 is 3.0%. The new pass through entity tax rate for tax year 2022 is 2.98%. Please be advised that both the small business income tax and the pass through entity tax are elective, they are not mandatory. Finally, the 2022 corporation income tax rate remains unchanged at the greater of $50 or 4.9% of the corporation's federal taxable income.

2020 Conformity

The instructions issued with the 2020 Arizona tax returns are correct. For a complete list of the additions and subtractions that apply to 2020, see the 2020 instructions for Arizona Form 140 (individuals) or Arizona Form 120 (corporations). The statutory additions can be found in A.R.S. § 43-1021 (A.R.S. § 43-1121 for corporations) and the subtractions in A.R.S. § 43-1022 (A.R.S. § 43-1122 for corporations).

Please Note:

2020 conformity includes the federal 2020 Cares Act, the federal Consolidated Appropriations Act of 2021, and the federal American Rescue Plan of 2021.

Taxpayers who previously amended their prior-year federal returns to claim net operating losses, but were waiting to amend their Arizona returns until conformity was resolved, may now amend their Arizona returns. Taxpayers who filed amended Arizona returns assuming Arizona would conform and had their net operating loss refunds held in abeyance by the Department should now expect those returns to be processed.

The American Rescue Plan of 2021 included a subtraction from federal adjusted gross income of up to $10,200 in unemployment income per person for the 2020 tax year. Taxpayers who filed their original federal return for tax year 2020 claiming the subtraction should file their Arizona return starting with federal adjusted gross income from their federal return. Taxpayers that did not take the subtraction on their original federal return and are waiting for the IRS to adjust their return to remove the subtraction should wait to amend their Arizona return. The Department is analyzing this situation and will post additional guidance soon.

2019 Conformity

Each year the Arizona legislature considers whether to amend Arizona Revised Statutes § 43-105 to conform to changes made to the Internal Revenue Code during the prior year. On March 24, 2020, the Governor signed Senate Bill 1296 which conformed to the definition of federal adjusted gross income (federal taxable income for corporations) including federal changes made during 2019 and did not add any new non-conformity additions or subtractions. However, additions and subtractions created for prior non-conformity adjustment for issues such as bonus depreciation are still in place. The instructions issued with the 2019 Arizona tax returns are correct. For a complete list of the additions and subtractions that apply to 2019 see the 2019 instructions for Arizona Form 140 (individuals) or Arizona Form 120 (corporations). The statutory additions are in A.R.S. § 43-1021 (A.R.S. § 43-1121 for corporations) and the subtractions are in A.R.S. § 43-1022 (A.R.S. § 43-1122 for corporations).

Please Note: This 2019 conformity notice does not include any federal legislation enacted after January 1, 2020 including the retroactive provisions in 2020 Cares Act or the Consolidated Appropriations Act, 2021 that may impact 2019. Taxpayers should not file an Arizona amended return for 2019 based on federal NOL carrybacks until the Arizona legislature determines whether to conform to the 2020 Cares Act or the Consolidated Appropriations Act, 2021. Taxpayers who file Arizona amended returns for 2019 based on federal NOL carrybacks provisions that Arizona has not conformed to may have their refunds held in abeyance.

2018 Conformity

Each year the Arizona legislature considers whether to amend Arizona Revised Statutes § 43-105 to conform to changes made to the Internal Revenue Code during the prior year. On May 31, 2019, the Governor signed House Bill 2757, which conformed to the definition of federal adjusted gross income (federal taxable income for corporations), including federal changes made during 2018 and did not add any new non-conformity additions or subtractions. However, additions and subtractions created for prior non-conformity adjustment for issues such as bonus depreciation are still in place. The instructions issued with the 2018 Arizona tax returns are correct. For a complete list of the additions and subtractions that apply to 2018, see the 2018 instructions for Arizona Form 140 (individuals) or Arizona Form 120 (corporations). The statutory additions are in A.R.S. § 43-1021 (A.R.S. § 43-1121 for corporations) and the subtractions are in A.R.S. § 43-1022 (A.R.S. § 43-1122 for corporations).

In addition to 2018 conformity, several changes were made to Arizona’s income tax code for tax year 2019. Arizona’s standard deduction was significantly increased to match the federal standard deduction amount ($12,200 single/married filing separate, $18,350 head of household, $24,400 married filing joint). Arizona removed its subtraction for personal and dependent exemptions. Arizona now provides a $100 child tax credit for dependents under age 17 and $25 tax credit for dependents age 17 and over. This credit is phased out for federal adjusted gross income greater than $200,000 single/married filing separate and head of household and $400,000 married filing joint. Arizona also now allows taxpayers to increase their standard deduction by 25% of the charitable contributions that would have been claimed had the taxpayer itemized deductions.

2017 Conformity

Each year the Arizona legislature considers whether to amend Arizona Revised Statutes § 43-105 to conform to changes made to the Internal Revenue Code during the prior year. On April 5, 2018, the Governor signed House Bill 2647 which conformed to the definition of federal adjusted gross income (federal taxable income for corporations) including federal changes made during 2017 and did not add any new non-conformity additions or subtractions. However, additions and subtractions created for prior non-conformity adjustment for issues such as bonus depreciation are still in place. The instructions issued with the 2017 Arizona tax returns are correct. For a complete list of the additions and subtractions that apply to 2017 see the 2017 instructions for Arizona Form 140 (individuals) or Arizona Form 120 (corporations). The statutory additions are in A.R.S. § 43-1021 (A.R.S. § 43-1121 for corporations) and the subtractions are in A.R.S. § 43-1022 (A.R.S. § 43-1122 for corporations).

2016 Conformity

Each year the Arizona legislature considers whether to amend Arizona Revised Statutes § 43-105 to conform to changes made to the Internal Revenue Code during the prior year. On March 3, 2017, the Governor signed Senate Bill 1290 which conformed to the definition of federal adjusted gross income (federal taxable income for corporations) including federal changes made during 2016 and did not add any new non-conformity additions or subtractions. However, additions and subtractions created for prior non-conformity adjustments for issues such as bonus depreciation are still in place. The instructions issued with the 2016 Arizona tax returns are correct. For a complete list of the additions and subtractions that apply to 2016 see the 2016 instructions for Arizona Form 140 (individuals) or Arizona Form 120 (corporations). The statutory additions are in A.R.S. § 43-1021 (A.R.S. § 43-1121 for corporations) and the subtractions are in A.R.S. § 43-1022 (A.R.S. § 43-1122 for corporations).

In addition to conforming to the changes made to the Internal Revenue Code with regard to the measurement of income, Senate Bill 1290 also amended 3 Arizona statutes to conform to other relevant changes in federal tax law. Pursuant to A.R.S. § 43-306(C), an Arizona partnership that has no Arizona income, deductions of credits for a taxable year is no longer required to file a partnership return for that year. Pursuant to A.R.S. § 43-412(B), the annual Arizona reconciliation withholding return is due with the department on or before January 31 of the year following the year for which the report is made. Pursuant to A.R.S. § 43-313, within 31 days after the end of each calendar year, employers shall furnish each employee with statement of the amount withheld during the previous tax year, showing the gross earnings and the amount withheld.

2015 Conformity

Each year the Arizona legislature considers whether to amend Arizona Revised Statutes § 43-105 to conform to changes made to the Internal Revenue Code during the prior year. On May 11, 2016, the Governor signed Senate Bill 1288 which conformed to the definition of federal adjusted gross income (federal taxable income for corporations) including federal changes made during 2015 and did not add any new non-conformity additions or subtractions. However, additions and subtractions created for prior non-conformity adjustments for issues such as bonus depreciation are still in place. The instructions issued with the 2015 Arizona tax returns are correct. For a complete list of the additions and subtractions that apply to 2015 see the 2015 instructions for Arizona Form 140 (individuals) or Arizona Form 120 (corporations). The statutory additions are in A.R.S. § 43-1021 (A.R.S. § 43-1121 for corporations) and the subtractions are in A.R.S. § 43-1022 (A.R.S. § 43-1122 for corporations).

In addition to conforming to the changes made to the Internal Revenue Code with regard to the measurement of income, Senate Bill 1288 also amended 3 Arizona statutes, added new session law and established a new Arizona statute to conform to other relevant changes in federal tax law. Pursuant to A.R.S. § 43-325(3), for taxable years beginning from and after December 31, 2015, partnership returns are due on or before the fifteenth day of the third month following the close of the taxable year. A.R.S. § 43-1414 was added in response to the federal change in partnership audits which provides for an imputed underpayment to be assessed at the partnership level. A.R.S. § 43-327 and A.R.S. § 43-1401 were both amended in order to incorporate A.R.S. § 43-1414.

2014 Conformity

Each year the Arizona legislature considers whether to amend Arizona Revised Statutes § 43-105 to conform to changes made to the Internal Revenue Code during the prior year. On April 09, 2015, the Governor signed Senate Bill 1188 which conformed to the definition of federal adjusted gross income (federal taxable income for corporations) including federal changes made during 2014 and did not add any new non-conformity additions or subtractions. However, additions and subtractions created for prior non-conformity adjustments for issues such as bonus depreciation are still in place. The instructions issued with the 2014 Arizona tax returns are correct. For a complete list of the additions and subtractions that apply to 2014 see the 2014 instructions for Arizona Form 140 (individuals) or Arizona Form 120 (corporations). The statutory additions are in A.R.S. § 43-1021 (A.R.S. § 43-1121 for corporations) and the subtractions are in A.R.S. § 43-1022 (A.R.S. § 43-1122 for corporations).

2013 Conformity

Each year the Arizona legislature considers whether to amend Arizona Revised Statutes § 43-105 to conform to changes made to the Internal Revenue Code during the prior year. On April 24, 2014, the Governor signed Senate Bill 1300 which conformed to the definition of federal adjusted gross income (federal taxable income for corporations) including federal changes made during 2013 and did not add any new non-conformity additions or subtractions. However, additions and subtractions created for prior non-conformity adjustments for issues such as bonus depreciation are still in place. The instructions issued with the 2013 Arizona tax returns are correct. For a complete list of the additions and subtractions that apply to 2013 see the 2013 instructions for Arizona Form 140 (individuals) or Arizona Form 120 (corporations). The statutory additions are in A.R.S. § 43-1021 (A.R.S. § 43-1121 for corporations) and the subtractions are in A.R.S. § 43-1022 (A.R.S. § 43-1122 for corporations).

2012 Conformity

Each year the Arizona legislature considers whether to amend Arizona Revised Statutes § 43-105 to conform to changes made to the Internal Revenue Code during the prior year. On April 5, 2013, the Governor signed Senate Bill 1168 which conformed to the definition of federal adjusted gross income (federal taxable income for corporations) including federal changes made during 2012 and did not add any new non-conformity additions or subtractions. However, additions and subtractions created for prior non-conformity adjustments for issues such as bonus depreciation or the increased § 179 expenses are still in place. The instructions issued with the 2012 Arizona tax returns are correct. For a complete list of the additions and subtractions that apply to 2012 see the 2012 instructions for Arizona Form 140 (individuals) or Arizona Form 120 (corporations). The statutory additions are in A.R.S. § 43-1021 (A.R.S. § 43-1121 for corporations) and the subtractions are in A.R.S. § 43-1022 (A.R.S. § 43-1122 for corporations).

Arizona did not conform to a portion of the FAA Modernization and Reform Act (Public Law 112-95, Section 1106) that allows individuals that were qualified airline employees that received certain payments made by a commercial passenger airline carrier under the approval of a federal bankruptcy court in a case filed after 9/11/2001 and before 1/1/2007, to make contributions to a traditional Individual Retirement Account (IRA) and treat the contributions as if they were made in the year in which the airline payments were received. A Taxpayer that amends their federal tax returns due to this provision for any tax year prior to 2012 should not amend their Arizona return for those years. Instead the Arizona taxpayers will be allowed a credit on their 2013 Arizona individual income tax return based on the reduction in tax that would have occurred if they would have been allowed to amend their Arizona 2001 through 2011 returns for the provision in Public law 112-95, Section 1106.

2011 Conformity

Each year the Arizona legislature considers whether to amend Arizona Revised Statutes § 43-105 to conform to changes made to the Internal Revenue Code during the prior year. On March 16, 2012, the Governor signed House Bill 2120 which conformed to the definition of federal adjusted gross income (federal taxable income for corporations) including federal changes made during 2011 and did not add any new non-conformity additions or subtractions. However, additions and subtractions created for non-conformity purposes for 2009 as well as prior non-conformity adjustments for issues such as bonus depreciation or the increased § 179 expenses are still in place. The instructions issued with the 2011 Arizona tax returns are correct. For a complete list of the additions and subtractions that apply to 2011 see the 2011 instructions for Arizona Form 140 (individuals) or Arizona Form 120 (corporations). The statutory additions are in A.R.S. § 43-1021 (A.R.S. § 43-1121 for corporations) and the subtractions are in A.R.S. § 43-1022 (A.R.S. § 43-1122 for corporations).

2010 Conformity

Each year the Arizona legislature considers whether to amend Arizona Revised Statutes § 43-105 to conform to changes made to the Internal Revenue Code during the prior year. On February 14, 2011, the Governor signed House Bill 2008 which conformed to the definition of federal adjusted gross income including federal changes made during 2010 and did not add any new non-conformity additions or subtractions. However, all of the additions and subtractions created for non-conformity purposes for 2009 as well as prior non-conformity adjustments for issues such as bonus depreciation or the increased § 179 expenses are still in place. The instructions issued with the 2010 Arizona tax returns are correct. This includes adjustments to back out the federal deferral of the DOI and OID under section 108(i) of the internal revenue code (see A.R.S. §§ 43-1021(33), 43-1021(34), 43-1022(33) and 43-1022(34)). The additions and subtractions are also still in place that require the addback of all federal depreciation taken under section 167(a) of the internal revenue code and the subtraction for the depreciation that would have been claimed if the taxpayer had made the election to opt out of bonus depreciation under section 168(k)(2)(D)(iii) of the internal revenue code. For a complete list of the additions and subtractions that apply to 2010 see the 2010 instructions for Arizona Form 140 (individuals) or Arizona Form 120 (corporations). The statutory additions are in A.R.S. § 43-1021 (A.R.S. § 43-1121 for corporations) and the subtractions are in A.R.S. § 43-1022 (A.R.S. § 43-1122 for corporations).

2009 Non-conformity (updated 8/16/2010)

Arizona has not fully conformed to the federal changes to the Internal Revenue Code made in 2009. Read below to determine if your Arizona income tax returns are impacted by this.

Each year the Arizona legislature considers whether to amend Arizona Revised Statutes § 43-105 to conform to changes made to the Internal Revenue Code during the prior year. On April 27, 2010, the Governor signed House Bill 2156 which incorporated the federal changes made in 2009 into Arizona’s definition of “internal revenue code.” However, House Bill 2156 also included additions to and subtractions from income that have the effect of Arizona not conforming to the following changes:

Unemployment Compensation

For the 2009 tax year, individuals were able to exclude up to $2,400 of unemployment compensation on their federal income tax return pursuant to section 85(c) of the internal revenue code as added by section 1007 of the American Recovery and Reinvestment Act of 2009. For Arizona, the amount of unemployment compensation that was excluded on the federal return must be added back on the Arizona return. If your original return for 2009 has already been filed, see the information regarding Arizona Form 140X-NC at the bottom of this page. If the original return for 2009 has not yet been filed, then the adjustment will generally be made under “other additions.” If you file an Arizona Form 140A or 140EZ, which does not have an additions line, you may make the adjustment by increasing the amount on the federal adjusted gross income line (Arizona 140A line 12 or 140EZ line 6) by the amount of the unemployment income excluded on your federal return.
Itemized Deduction for the Sales Tax on the Purchase of a New Motor Vehicle

Prior to 2009, taxpayers that claimed itemized deductions on their federal income tax returns were able to choose between a deduction of state and local income taxes, or a deduction for general state and local sales taxes (including the sales tax on a qualified motor vehicle). For the 2009 tax year, taxpayers that claimed itemized deductions on their federal income tax return and who made the choice to deduct state and local income taxes could also deduct the sales tax on the purchase of a qualified motor vehicle for purposes of their federal income tax return. Arizona did not adopt the federal change that allowed the deduction of the sales tax on a motor vehicle when the taxpayer made the choice to deduct state and local income taxes rather than sales taxes.

For Arizona purposes, itemized deductions must be adjusted to exclude the deduction for the sales tax on a motor vehicle if the taxpayer made the choice on their federal return to deduct state and local income taxes rather than general sales taxes. If your original return for 2009 has already been filed, see the information regarding Arizona Form 140X-NC at the bottom of this page. If the original return for 2009 has not yet been filed, then the reduction to itemized deductions should be made on Arizona Schedule A, line 14, “Other Adjustments”.

Note: if the adjustment to itemized deductions would reduce itemized deductions to an amount less then the standard deduction, the taxpayer may chose to use the standard deduction instead. Also, the taxpayer may choose to recalculate their itemized deductions by claiming the general sales tax (including the sales tax on a motor vehicle) rather than the state and local income taxes.
Deduction for Cash Contributions for Haiti Earthquake Relief Made After January 11, 2010 and Before March 1, 2010

On the 2009 federal income tax return, taxpayers could elect to treat cash contributions for relief of victims of the earthquake in Haiti on January 12, 2010, that were made to qualified charities after January 11, 2010 and before March 1, 2010, as if the contributions were made on December 31, 2009, and not in 2010. Arizona did not adopt this federal change; therefore, any 2010 contributions deducted on the 2009 federal income tax return must be added back on the 2009 Arizona income tax return and the contributions will be treated as 2010 contributions for Arizona income tax purposes.

If your original individual income tax return for 2009 has already been filed, see the information regarding Arizona Form 140X-NC at the bottom of this page. If the original individual income tax return for 2009 has not yet been filed, then the reduction to itemized deductions should be made on Arizona Schedule A, line 13 “Adjustments to Charitable Contributions”. Corporations, partnerships or fiduciaries should add back the amount of 2010 contributions claimed on their 2009 federal income tax return under “other additions” on their original Arizona income tax return for 2009 or on the “additions” line on their amended returns.
Discharge of Indebtedness (DOI) Income From Business Indebtedness Discharged by the Reacquisition of a Debt Instrument

Generally, when a loan is settled for less than the amount owed, DOI income is realized by the debtor and usually must be included in the debtor’s gross income. The amount of DOI income is generally equal to the amount of loan forgiveness. DOI income also occurs when a debtor repurchases his or her own debt at a discount (a price lower than the adjusted basis issue price of the debt instrument). In debt repurchase transactions, the amount of DOI income is generally equal to the difference between the adjusted issue price and the price paid for the debt instrument.

For federal purposes, a taxpayer may have made a special election for taxable years 2009 or 2010 to exclude the income in 2009 or 2010 and to instead include DOI income in connection with the reacquisition of a business debt instrument ratably over a 5 year period. A taxpayer that made this election will generally include this income in federal adjusted gross income for individuals or federal taxable income for corporations beginning with the 2014 taxable year. A taxpayer would have made the federal election under I.R.C. § 108(i) as added by the American Recovery and Reinvestment Act of 2009.

Arizona did not adopt the special federal DOI income deferral provisions for the 2009 or 2010 taxable year. For Arizona purposes, if you made the federal election to defer the inclusion of DOI income under I.R.C. § 108(i), you must make an addition on your Arizona income tax return for the amount of DOI that you deferred and excluded from the computation of your 2009 federal adjusted gross income for individuals or federal taxable income for corporations under I.R.C. § 108(i).

If you are a corporate taxpayer that has already filed its original 2009 income tax return, this adjustment should be made on the “additions” line of the Arizona amended return (Arizona Form 120X). If you are an individual taxpayer who has already filed your original return for 2009, see the information regarding Arizona Form 140X-NC at the bottom of this page. For original 2009 Arizona income tax returns as well as amended returns for fiduciaries, the adjustment will be made on line B3, "other additions", on Form 141AZ. Partnerships do not make this adjustment at the partnership level because the addition will be made at the partner level. Likewise, S corporation shareholders will make this adjustment at the shareholder level. Even though you must include that DOI income on your 2009 Arizona return, Arizona will not tax that income again in the future years when you include the income in your federal adjusted gross income for individuals or federal taxable income for corporations.
Original Issue Discount (OID) on Reacquisition of Debt Instrument

For federal purposes, when a taxpayer made the special election to defer DOI income under I.R.C. § 108(i) (see number 4 above), the taxpayer was not allowed to take a deduction with respect to the portion of any OID that accrued with respect to that DOI income, during the income deferral period. In this case, the taxpayer must deduct the aggregate amount of the OID deductions disallowed ratably over a 5 year period, beginning with the period in which the income is includible in federal adjusted gross income for individuals or federal taxable income for corporations.

Arizona did not adopt the federal provisions requiring a taxpayer to defer the OID deduction in cases where the taxpayer federally deferred the DOI income under I.R.C. § 108(i). For Arizona purposes, you are required to add the amount of deferred DOI to income (see number 4 above). Since Arizona is taxing the federally deferred DOI income for 2009 on your 2009 Arizona return, you may subtract the amount of OID that accrued during the taxable year with respect to that DOI income.

If you are a corporate taxpayer that has already filed its original 2009 income tax return, this adjustment would be made on the “subtractions” line of the Arizona amended return (Arizona Form 120X). If you are an individual taxpayer who has already filed your original return for 2009, see the information regarding Arizona Form 140X-NC at the bottom of this page. For original 2009 Arizona income tax returns as well as amended returns for fiduciaries, the adjustment will be made on line B8, “other subtractions”, on Form 141AZ. Partnerships do not make this adjustment at the partnership level because the addition will be made at the partner level. Likewise, S corporation shareholders will make this adjustment at the shareholder level. In the future, when the OID is deducted on the federal return, you will be required to add the amount back on your Arizona return, since you will have already received the benefit in Arizona.
Special Federal Net Operating Loss (NOL) Carryback Rules for 2008 and 2009 Losses

Under I.R.C. § 172(b)(1)(H), as amended by the American Recovery and Reinvestment Act of 2009 and the Worker, Homeownership, and Business Assistance Act of 2009, certain taxpayers with NOL amounts from 2008 and 2009 could elect to carry the NOL back for 3, 4 or 5 years instead of the normal 2 years (3 years in some situations).

Arizona did not adopt the special federal net operating loss rules for losses incurred during 2008 or 2009. For Arizona purposes, an individual must deduct a net operating loss as if the election under I.R.C. § 172(b)(1)(H) had not been made. Therefore, a taxpayer that made the election to extend the NOL carryback period under I.R.C. § 172(b)(1)(H) for federal purposes will only be able to claim what the federal NOL carryback and carryforward would have been if the election had not been made and the carryback period was 2 years (sometimes 3) instead of the extended period elected.

An Arizona subtraction will be allowed for the difference between the actual carryforward on the federal return and the carryforward that would have been allowed as a deduction on the federal return if the election had not been made. This adjustment does not apply to taxpayers that did not make the election under I.R.C. § 172(b)(1)(H), including taxpayers that claim a 5 year carryback under certain farming or disaster relief provisions.
Note: The federal extended carryback provisions do not effect Arizona corporate income tax returns. Arizona does not allow net operating loss carry backs for corporations. Arizona requires corporations to add back all net operating losses taken on their federal returns. The corporations are then allowed a subtraction for Arizona basis net operating losses which are carried forward 5 years.

Arizona Form 140X-NC, Individual Amended Return for Non-Conformity Issues Only

The only purpose for the new Arizona Form 140X-NC is for taxpayers to make non-conformity changes (other than the net operating loss adjustments) to their previously filed Arizona individual income tax returns. Because this form is limited to non-conformity issues, it is simpler to complete than Arizona Form 140X. In addition, if you file Form 140X-NC to report non-conformity changes and pay the entire tax due by October 17, 2011, you will not owe any penalties or interest on the additional tax.

What if do not (or cannot) use Form 140X-NC?

If you amend your 2009 return but do not (or cannot) use Form 140X-NC, you will be billed for interest and possibly penalties. However, if the amended return includes adjustments you had to make for non-conformity issues and you filed and paid the tax by October 17, 2011, you should write to the Department for abatement of the penalties and interest related to non-conformity adjustments. Sign and date the request and include your telephone number and your tax identification number or social security number. Send your request to:

Arizona Department of Revenue
Penalty Review Unit
1600 W. Monroe
Phoenix, AZ 85007

In the future the Department may post additional information on the impact of these non-conformity issues on your income tax liability for 2009. If the Department provides additional information you can learn about it by reviewing updated versions of this Notice.