Under legislation that became law in 2017, businesses with an annual transaction privilege tax (TPT) and use tax liability of $5,000 or more during the prior calendar year will be required to file and pay electronically starting in February 2020 for the January reporting period.
The revised 2020 threshold of $5,000 is a change from the 2019 level of $10,000.
Businesses filing returns electronically are eligible to receive up to $2,000 back through the enhanced accounting credit for e-filing.
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.
Businesses failing to electronically file and pay are subject to the following penalties:
- Five percent of the tax amount due for filing a paper return. The minimum penalty is $25, including filings with zero liability.
- Five percent of the amount of payment made by check or cash.
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