Looking for a Arizona Tax Forms And Templates? Download it for free!

Arizona Form

2011 Underpayment of Estimated Tax by Corporations

220

120: A unitary group of corporations filing

Obtain additional information or assistance by calling one of

OTE FOR FORM

a combined return must make its estimated tax payments on

the numbers listed below:

a combined basis. Therefore, a unitary group, as a single

Phoenix

(602) 255-3381

taxpayer, must compute the underpayment of estimated tax

From area codes 520 and 928, toll-free

(800) 352-4090

penalty on a combined basis if its Arizona tax liability for the

Hearing impaired TDD user

taxable year is $1,000 or more.

Phoenix

(602) 542-4021

From area codes 520 and 928, toll-free

(800) 397-0256

120: An Arizona affiliated group filing a

OTE FOR FORM

consolidated return pursuant to ARS § 43-947 must make its

Obtain tax rulings, tax procedures, tax forms and instructions,

estimated tax payments on a consolidated basis. Therefore, an

and other tax information by accessing the department's

Arizona affiliated group, as a single taxpayer, must compute the

Internet home page at

underpayment of estimated tax penalty on a consolidated basis

if its Arizona tax liability for the taxable year is $1,000 or more.

General Instructions

B. Form 120S: Generally, the taxpayer is subject to the penalty

Purpose of Form

if the tax shown on the taxpayer’s 2011 Arizona tax return is

$1,000 or more and it did not timely pay at least the smaller of:

Taxpayers filing Forms 99T, 120, 120A, and 120S use



Form 220 to determine whether they are subject to a penalty

Ninety percent of the tax (reduced by any refundable tax

for underpayment of their Arizona estimated tax liability and,

credit, if applicable) shown on its 2011 return, OR

if so, the amount of the penalty.



If the taxpayer’s 2010 return was filed for a period of

The taxpayer's Arizona estimated tax liability is determined

twelve months, an amount of tax equal to the sum of:

as follows:

Ninety percent of the portion of the 2011 Arizona tax



liability that is attributable to built-in gains income or

Forms 120, 120A, and 120S - [income tax plus tax from

certain capital gains income; plus

recapture of tax credits] less [the Clean Elections Fund Tax

Reduction, nonrefundable tax credits, the Clean Elections

One hundred percent of the portion of the 2010 Arizona tax

Fund Tax Credit and any refundable tax credit];

liability that is attributable to excess net passive income.



Form 99T - [income tax] less [the Clean Elections Fund

NOTE: In these instructions, “return” generally refers to the

Tax Reduction and Clean Elections Fund Tax Credit].

corporation’s original return. However, an amended return

is considered the original return if the amended return is

120

120A):

CLAIM OF RIGHT ADJUSTMENT

ORMS

AND

filed by the due date (including extensions) of the original

A taxpayer that computes its tax liability under the claim of

return. Refer to Arizona Corporate Tax Ruling CTR 02-1 for

right provisions should base its estimated tax liability on the

further information.

net tax liability computed under the claim of right provisions.

The penalty is calculated separately for each installment due

Who is Subject to the Underpayment Penalty

date. Therefore, the taxpayer may owe a penalty for an earlier

If the taxpayer's Arizona tax liability (reduced by any

installment due date, even if later “catch-up” payments were

refundable tax credit and the claim of right adjustments, if

made for the earlier installment due date underpayment. A

applicable) is less than $1,000, the taxpayer is not subject to this

taxpayer may be subject to the underpayment penalty even if

penalty. Arizona tax liability is Form 99T, page 1, line 7; or

the taxpayer is due a refund when its return is filed.

Form 120, page 1, line 24 (reduced by any refundable tax credit

A taxpayer may be able to reduce or eliminate the penalty by

and the claim of right adjustments, if applicable); or Form 120A,

using the annualized income installment method or the adjusted

page 1, line 16 (reduced by any refundable tax credit and claim

seasonal installment method.

of right adjustments, if applicable); or Form 120S, page 1, line

20 (reduced by any refundable tax credit, if applicable).

Who Must Complete This Form

A. Forms 99T, 120, and 120A: Generally, the taxpayer is

A taxpayer DOES NOT HAVE TO COMPLETE Form 220,

subject to the penalty if the tax shown on the taxpayer’s 2011

Underpayment of Estimated Tax by Corporations, if the

Arizona tax return is $1,000 or more and it did not timely pay

taxpayer made estimated tax payments based on either of the

at least the smaller of:

following methods:



Ninety percent of the tax (reduced by any refundable tax

All taxpayers: An amount equal to 90 percent of the current

credit and the claim of right adjustments, if applicable)

taxable year’s tax liability (reduced by any refundable tax

shown on its 2011 return, OR

credit and the claim of right adjustments, if applicable),



paid in four equal installments; or

The tax shown on its 2010 return (reduced by any refundable



tax credit and the claim of right adjustments, if applicable). The

Form 99T, 120, and 120A: An amount equal to 100 percent

taxpayer must have filed a 2010 return showing at least some

of the taxpayer’s tax liability (reduced by any refundable tax

amount of tax and the return must have been filed for a period

credit and the claim of right adjustments, if applicable) for the

of 12 full months. However, a “large corporation” may base

prior taxable year, paid in four equal installments. A “large

only its first required installment on the prior taxable year's tax.

corporation” may not use this method.

Arizona Form 220 - Underpayment Of Estimated Tax By Corporations Instructions - 2011

Related Articles

Related forms

Related Categories