Update for Businesses Required to File Withholding Returns

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All withholding returns are required to be filed electronically starting with returns for periods beginning in 2020 or when the Department has an electronic system available, whichever is later.

The Department currently has three different methods of filing Arizona Form A1-QRT, Form A1-R, and Form A1-APR electronically:

  1. Registered users of AZTaxes can use the data input method.
  2. Registered web upload users of AZ Web File (AZFSET) can bulk-file by uploading a .csv file.
  3. Registered transmitters of AZ Web File (AZFSET) can bulk-file using the transmission method.

 

Therefore, all Arizona Form A1-QRT, Form A1-R, and Form A1-APR filed for tax periods beginning in 2020 or later are required to be filed electronically using one of the methods listed above.

In addition to the forms mentioned above, as part of the yearly withholding reconciliation (Form A1-R or Form A1-APR, due January 31, 2022) the following federal forms can be filed to Arizona electronically:

  • Federal Form W-2
  • Federal Form W-2c
  • Federal Form W-2G
  • Federal Form 1099-DIV
  • Federal Form 1099-MISC
  • Federal Form 1099-R

 

The Department currently has four methods for electronically filing these federal documents with Arizona:

  1. Registered users of AZTaxes upload a .txt file,
  2. Registered users of AZTaxes can use the data entry method,
  3. Registered web upload users of AZ Web File (AZFSET) bulk-file by uploading a .txt file, or
  4. Registered transmitters of AZ Web File (AZFSET) bulk-file using the transmission method. 
    While the Department made this method available in late 2020, it does not know at this time if any third party transmitters will be able to take advantage of this method in time for the January 31, 2022 deadline.

 

To ensure the best outcome for affected taxpayers, the mandate to electronically file the above referenced federal forms with Arizona will be waived for tax year 2021, due January 31, 2022.

Please see Publication 701 for specifics on the data input or upload methods of electronically filing, as well as for any updates.

 

Tuesday, December 28, 2021