E-Services for Businesses in Arizona
For businesses, filing electronically is a requirement under certain circumstances. The following criteria determines which Arizona taxpayers must remit their taxes electronically:
| Year | E-File and E-Pay Threshold |
|---|---|
| 2020 | $5,000 annual transaction privilege tax and use tax liability |
| 2021 | $500 annual transaction privilege tax and use tax liability |
| (Pursuant to A.R.S. § 42-5014 and 42-1129) |
Failure to comply with the electronic filing and payment requirements may result in penalties. Penalty for not filing and paying TPT electronically:
- Penalty of 5% of the tax amount due for filing a paper return. The minimum penalty is $25, including filings with zero liability.
- Penalty of 5% of the amount of payment made by check or cash.
- 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 25% of the tax due or $100, per return, whichever is greater.
(Pursuant to A.R.S. § 42-1125)
For more information on business e-filing requirements, see ADOR Pub 650.
AZTaxes.gov - How to file your TPT return electronically
The state of Arizona provides a website that enables business taxpayers to file and pay state taxes online without a need for a paid third-party vendor.
First, ensure you have obtained a TPT license. Arizona-based businesses should visit Business One Stop (B1S) if forming their business for the first time.
Once a TPT license has been obtained, ensure you are enrolled on AZTaxes.gov and have your TPT license linked to your AZTaxes account. If you applied for a license through B1S or AZTaxes.gov, this is taken care of and linking is not necessary.
Next, is filing the TPT return online through AZTaxes for all the locations and business codes that apply for the tax period.
If new locations, city/regions, or business codes are necessary, you may add them within the return (fees may apply).
E-File Status
You may view your e-filed return status through AZTaxes under E-filed Documents in the left side menu panel, then E-file Status. Note: It may take up to one hour for your Reject Reasons to appear or to View your return.
If your file is rejected, click Reject Reasons to download a list of errors found on your file.
Filing electronically reduces errors, but if you have an error on your return, ADOR will notify you through correspondence. The TPT Notice page is an additional resource to help understand terms, instructions, and common errors to avoid.
For additional tutorials for AZTaxes.gov, visit the Online Tutorial page.
Accounting Credit
Electronic filing and paying saves money.
- Electronic TPT filers are able to claim an accounting credit of 1.2 percent of the tax due, up to a maximum credit of $12,000, during a calendar year.
- Paper TPT filers are able to claim an accounting credit of 1 percent and a total calendar year credit of $10,000.
Taxpayers who do not file all their TPT returns electronically for the calendar year do not qualify for the increased accounting credit.
| Business Code | Taxable Activities | Accounting Credit Rate for Paper Filers (STATE TAX ONLY) | Accounting Credit Rate for Electronic Filers (STATE TAX ONLY) |
|---|---|---|---|
| 002 | Mining–Nonmetal | .0313% | .0375% |
| 004 | Utilities | .056% | .0672% |
| 005 | Communications | .056% | .0672% |
| 006 | Transporting | .056% | .0672% |
| 007 | Private (Rail) Car | .056% | .0672% |
| 008 | Pipeline | .056% | .0672% |
| 009 | Publication | .056% | .0672% |
| 010 | Job Printing | .056% | .0672% |
| 011 | Restaurants and Bars | .056% | .0672% |
| 012 | Amusement | .056% | .0672% |
| 014 | Personal Property Rental | .056% | .0672% |
| 015 | Contracting–Prime | .056% | .0672% |
| 017 | Retail | .056% | .0672% |
| 019 | Severance–Metalliferous Mining | .025% | .03% |
| 025 | Transient Lodging | .055% | .066% |
Electronic Funds Transfer Program
Since January 1, 1993, the state of Arizona has required certain taxpayers to remit payments due through the electronic funds transfer (EFT) system. Electronic funds transfer requires the taxpayer to send payments electronically rather than writing and mailing a check. It has proven to be a safe, efficient payment system that allows the state to use techniques that banks and businesses have used for years.
TPT Bulk Filing Options
The state of Arizona allows taxpayers to electronically file and pay their transaction privilege tax returns using approved tax preparation software. There are two options to file:
- Returns can be filed through the software products or tax professionals approved for this program.
- Taxpayers can upload a file created by the approved tax preparation software on AZTaxes.gov.