TPT Updates--December 2020

2021 TPT LICENSE RENEWALS 

A transaction privilege tax license is used for collection and remittance of state, county and city taxes.  The Arizona Department of Revenue (ADOR) is sending renewal letters to businesses to renew their 2021 TPT License.  
Businesses licensed with ADOR are required to renew their TPT license annually by January 1.  
Visit https://azdor.gov/transaction-privilege-tax/tpt-license/renewing-tpt-license for details.

 THRESHOLD CHANGES

TPT Electronic Filing and Paying Thresholds
Beginning January 1, 2021, TPT filers with an annual total tax liability of $500.00 or more are required to file electronically.  For more information on transaction privilege tax filing and paying requirements, visit azdor.gov/transaction-privilege-tax-tpt.

Economic Nexus Thresholds 

Beginning January 1, 2021, the economic nexus thresholds for remote sellers gross sales will drop to $100,000. Those that did not meet the $150,000 threshold for 2020, should review their direct sales (before any deductions). For details visit  https://azdor.gov/transaction-privilege-tax/retail-sales-subject-tpt/out-state-sellers/economic-threshold.

FORM TPT-EZ- MASS MAILING DISCONTINUED

Beginning February 1, 2021, the Arizona Department of Revenue will stop mailing the paper Form TPT-EZ to customers in an effort to deliver Arizonans, faster, more cost-effective tax service.  Taxpayers can go to AZTaxes.gov to file and pay online or  download and print Form TPT-EZ by going to azdor.gov and clicking on “Forms.”

DUE DATE REMINDERS

TPT Filing Frequency and Due Dates*- Monthly
The downloadable 2021 printable schedule is available at azdor.gov/transaction-privilege-tax/due-dates.

TPT filers are reminded of the following November TPT filing deadlines:

• December 21 - TPT return due date
• December 30 - Paper returns must be received by ADOR by 5 p.m. on this date
• December 31 - Electronic returns must be received by ADOR by 5 p.m. on this date

* The electronic due date for TPT return is dependent on the return and payment being timely and filed electronically.

DID YOU KNOW

Filing Facts

• A $0 TPT return must be filed for temporarily closed businesses and residential rental property owners with no sales/or tax due.   Go to azdor.gov/transaction-privilege-tax-tpt for more information. 
• No longer in business?  Keep your account history remains in good and avoid penalties.  Cancel your existing TPT license on AZTaxes.gov or submit a Business Account Update Form.
• Unsure of a deduction code?  Use the deduction code search feature available in AZTaxes.gov. Search is available by deduction or deduction code description.
• You can verify and update your mailing address instantly and securely at AZTaxes.gov.

Feedback Opportunities

• ADOR accepts feedback on rulings, procedures in an ongoing effort to engage with and inform the public of state and local tax issues.  For additional details visit azdor.gov/legal-research/public-comment-rulings-procedures-and-other-documents.
• Want to give feedback on TPT Tax Notices from the Arizona Department of Revenue? TPT taxpayers, click this form to participate.

Common TPT Taxpayer Errors

• Sending in copies or duplicate returns can cause rework and delay processing.  
• Filling out the form incorrectly,  for example, entering SSN or EIN instead of their TPT license number.
• Wrong or invalid business or region codes.
• Reporting is different than what is calculated and net taxable reported is greater than the total tax due.
• Using a pencil, colored ink or sending photocopies can cause data entry delays.

EDUCATION, TUTORIALS AND TRAINING

ADOR makes available online workshops and tutorials on setting up AZTaxes, new user registration, understanding location codes, filing an electronic TPT return and more. To register or access online workshops, tutorials and resources, visit azdor.gov/taxpayer-education.