The Arizona Department of Revenue is providing additional support to assist businesses in meeting their annual withholding filing obligations, due February 1, 2021, for the calendar year 2020 (Form A1-R, Form A1-APR, Form W-2, and Form 1099 attachments).

In the November 3, 2020 General Election, voters approved the Smart and Safe Arizona Act (Proposition 207), which the Secretary of State certified on November 30, 2020. With this approval, the Smart and Safe Arizona Act has become effective to govern the possession, sale, and taxation of adult use marijuana in Arizona.

Taxpayers receiving Form 1099-G, which serves as a confirmation of the previous year’s state tax refund, can now go online to access and print the form.

To be eligible for a Form 1099-G, a taxpayer must have itemized on their federal return and received an Arizona income tax refund.

The Arizona Department of Revenue (ADOR) takes identity theft seriously and reminds taxpayers that tax filing season is a time to be aware of identity thieves looking for ways to commit tax fraud.

The department points to phishing schemes, card-skimming devices, unsecure Wi-Fi networks, data breaches, computer viruses, unsafe smartphone apps, and hacking email accounts as ways identities are stolen.

The Arizona Department of Revenue (ADOR) is reminding taxpayers of some key changes when filing for the 2020 tax year. 

Arizona individual income tax returns for tax year 2020 will include the following adjustments:

Taxpayers can file now and schedule payments up until the deadline.

The Arizona Department of Revenue (ADOR) reminds transaction privilege tax filers that monthly, quarterly, or annual returns are due.  Filing before the deadline is highly encouraged in the event assistance is required.

The Arizona Department of Revenue has reported for four consecutive fiscal years that no individual taxpayers have claimed the income tax credit for qualified employment of recipients of temporary assistance for needy families (TANF).

Pursuant to A.R.S. § 43-224, for taxable years 2021 and after, individual taxpayers will no longer be eligible for an individual income tax credit for:

Corporations, partnerships, S corporations, and fiduciaries can now electronically file their income taxes to the Arizona Department of Revenue (ADOR).

Legislation signed into law initiated a multi-year phase-in period for businesses required to file income tax returns electronically. The e-file option was introduced in 2020 for tax year 2019 and is now mandatory for corporations and partnerships for tax year 2020 returns (A.R.S. § 43-323(F)).

Three Tax Return Schemes

Identity thieves are always looking for new ways to scam or steal taxpayers’ identities, including phishing schemes, card-skimming devices, unsecure Wi-Fi networks, data breaches, computer viruses, unsafe smartphone apps, and hacking email accounts.