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).
The department is providing a 60-day waiver from the electronic filing mandate for withholding returns pursuant to the waiver provision found in A.R.S. section 43-323(G). No action is required by the business for the waiver to take effect. During this 60-day period, businesses may file their annual or quarterly withholding returns by paper.
The department is also granting a 30-day extension under A.R.S. section 43-412(B) for the annual withholding returns due February 1, 2021. No action is required by the business to obtain this extension. The department's technical issues satisfy the good cause requirement necessary for an extension. Below are the extended due dates of the Form A1-R or Form A1-APR, which may be filed electronically or by paper:
- Form A1-R (and W-2’s and 1099’s): timely if filed by March 1, 2021.
- Form A1-APR (and W-2’s and 1099’s): timely if filed by March 1, 2021.
The department also allows a 10-day grace period for the Form A1-QRT, provided the business has made timely withholding payments over the previous year. If the business is not eligible for the 10-day grace period or cannot otherwise file electronically or by paper by February 1, 2021, the department will waive late filing penalties upon request provided the Form A1-QRT is filed electronically or by paper by March 1, 2021. Please complete and submit Form 290, Request for Penalty Abatement.
The penalty grace period is specific to the withholding reconciliation returns due February 1, 2021, which covers both the late filing penalty and the electronic filing mandate.
This is not an extension of time to make withholding payments or to provide Form W-2 and Form 1099 to its employees and contractors after the due date.
The department continues its current efforts to assist impacted taxpayers to ensure they can electronically file and pay in a timely manner and as soon as possible for this tax period.
To assist newly registering AZTaxes.gov users, department representatives are available to answer questions and provide assistance by phone (602) 255-3381 or by Live Chat feature at www.azdor.gov.