Arizona Department of Revenue releases important 2019 taxpayer guidance

The Arizona Department of Revenue (ADOR) is committed to providing taxpayers and tax preparers with the information necessary to properly file this tax season. As it relates to tax year 2018, ADOR is providing the following filing update.

As contemplated in Arizona law, in situations where conformity between state and federal tax law has not yet been decided, ADOR has prepared income tax forms for tax year 2018 based on Arizona law conforming to the current Internal Revenue Code (IRC), except those provisions to which the state historically does not conform.

In preparation for this year’s unique filing season, ADOR has developed the appropriate forms and is making final adjustments to the online tax filing system and the department’s internal processing procedures. The agency anticipates online and paper forms will be available to taxpayers by January 28, the same date that federal tax forms will be accepted.

As a rule, the starting point for an Arizona return is a taxpayer’s federal adjusted gross income -- when federal changes are made, the Arizona legislature and executive must consider conforming to those changes if the Arizona starting points are to be kept the same.

Should there be any changes made to Arizona law conforming to the IRC, the Department of Revenue will be prepared to implement modifications required to current tax forms and will provide updated guidance at that time. Under A.R.S. 43-107, state law provides protection for taxpayers who may need to file an amended return if the state does not conform to federal tax law. These protections include additional time to file an amended return and relief from interest or penalties relating to any additional tax owed due to nonconformity.

In Arizona, electronic filing makes up approximately 80 percent of individual income tax returns that are filed every tax filing season. ADOR encourages taxpayers to file tax returns electronically as it is a more secure and efficient process to file and to receive any refund that they are entitled to. For tax year 2017, e-filed refunds were processed in eight days compared to 21 days for refunds from paper returns. Please note: The agency is prepared to follow the IRS e-filing timeline, which will start on January 28.

For more information on the State of Arizona tax system and for updates on this year’s tax filing season, go to: www.azdor.gov. Taxpayers also can contact the Department of Revenue by email at [email protected].

Wednesday, Jan. 9, 2019