On Jan. 1, 2019, the Arizona Department of Revenue’s program to enhance electronic filing and paying in the state goes into effect.
Under legislation that became law in 2017, businesses with an annual transaction privilege tax (TPT) and use tax liability of $10,000 or more during the prior calendar year will be required to file and pay electronically starting in February 2019 for the January reporting period.
E-filing and paying is more secure and faster for taxpayers and critical for ADOR to deliver a more results-driven, customer-focused management system that produces enhanced services for Arizonans. Increasing electronic filing and payments also frees up additional ADOR resources to process tax returns and payments of all types much faster, further strengthens tax fraud prevention measures and enhances the taxpayer experience.
Electronic filing also saves money for taxpayers because e-filing makes them eligible to receive up to a $2,000 annual reduction of tax due from the enhanced accounting credit. Taxpayers filing transaction privilege tax electronically during a calendar year are able to claim an increased accounting credit from 1 percent to 1.2 percent. This increases the total calendar year credit limit from $10,000 to $12,000. For taxpayers who file paper TPT returns, the accounting credit remains unchanged at 1 percent and a total calendar year credit of $10,000.
Is there a penalty for not filing and paying electronically?
- Taxpayers required to file an electronic return will be subject to a penalty of 5 percent of the tax amount due for filing a paper return. The minimum penalty is $25, including filings with zero liability.
- Taxpayers required to pay electronically will be subject to a penalty of 5 percent of the amount of payment made by check or cash.
There is also an update to the penalty for late filing. Under recent legislation, all late filing penalties will be a minimum of $25, including filings with zero liability.
To file and pay online, a business must be registered on www.AZTaxes.gov and utilizes Automated Clearance House (ACH) Debit, e-check or credit card as a payment method to comply with electronic funds transfer (EFT) payment requirements.
For more information on transaction privilege tax, including TPT filing and paying requirements, go to https://azdor.gov/transaction-privilege-tax-tpt.
For more information on the Arizona Department of Revenue, visit: www.azdor.gov
Wednesday, Dec. 19, 2018