Under legislation enacted in 2017, businesses with an annual transaction privilege tax (TPT) and use tax liability of $500 or more during the prior calendar year will be required to file and pay electronically starting in February 2021 for the January reporting period.
The revised 2021 threshold of $500 is a change from the 2020 level of $5,000.
E-filing and paying are more secure, faster, and critical for ADOR to deliver a more results-driven, customer-focused management system that produces enhanced services for taxpayers. Additionally, the department will stop mailing paper TPT-EZ returns to customers.
Businesses failing to file and pay electronically are subject to the following:
- A penalty of 5% of the tax amount due for filing a paper return. The minimum penalty is $25, including filings with zero liability.
- A penalty of 5% of the amount of payment made by check or cash.
- A penalty of 4.5% of the tax required to be shown on the return for each month or fraction of a month the return is late. There is a minimum of $25 and a maximum of 25% of the tax due or $100 per return, whichever is greater.
In 2021, the out-of-state sellers’ economic threshold is $100,000, and accordingly, they are required to file electronically.
To file and pay online, a business must be registered on www.AZTaxes.gov and use 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 e-services for businesses in Arizona, go here.