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Mandatory Corporate E-file Kicks Off in 2021

December 17, 2020

Arizona Department of Revenue (ADOR) continues its commitment to enhancing efficiencies for its customers by taking another step forward in expanding electronic filing for corporate taxpayers. Introduced in tax year 2019, a corporation or partnership can electronically file its income tax return to ADOR.

Legislation signed into law in 2017 makes it mandatory for corporations starting in 2021 to e-file their income tax return for tax year 2020. Likewise, taxpayers are statutorily obligated to file and pay fiduciary and withholding tax electronically. Beginning in 2021, businesses with an annual transaction privilege tax and/or use tax (TPT) liability of $500 or more during the prior calendar year must file and pay TPT electronically. Additionally, businesses with $125 average quarterly liability for withholding tax during the prior tax year are required to file and pay withholding electronically.

An electronic filing option for corporate income taxes provides a more convenient way of filing tax returns. In addition to e-filing being faster and more secure, returns are verified quicker than paper submissions, which benefits taxpayers if any errors require their attention.

ADOR has completed final system testing to begin accepting tax year 2020 corporate and partnership e-filed returns in early January. More than a dozen software vendors’ will be approved to submit income tax returns for companies.

Electronic filing has grown in Arizona, with 50 percent of the 182,000 corporate tax returns filed with ADOR in the 2019 tax year.

Corporations requiring more information on the ADOR e-file program can go to

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Thursday, December 17, 2020