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Arizona Form 120A

tax payments. Use Form 120ES, Corporation Estimated Tax

This payment method will debit the amount from the

Payment. The required installments may be computed on Form

specified checking or savings account on the date specified. If

120W, Estimated Tax Worksheet for Corporations.

an electronic payment is made from a checking or savings

account, a confirmation number will be generated. Please

For exceptions to the estimated tax requirements, see the

keep this confirmation number as proof of payment.

instructions for Form 220, Underpayment of Estimated Tax

by Corporations.

Credit card payment

A corporation that fails to make the required estimated tax

Estimated tax payments can be made via American Express,

payments is subject to a penalty on any estimated tax

Discover,

MasterCard

VISA

credit

cards.

Visit

payment which is late or underpaid.

and choose the credit card option. This will

take you to the website of the credit card payment service

The Arizona required annual payment of corporate estimated

provider. The service provider will charge a convenience fee

tax is the smaller of:

based on the amount of the tax payment. The service provider

 Ninety percent of the taxpayer's Arizona tax liability

will disclose the amount of the convenience fee during the

(reduced by refundable tax credits and claim of right

transaction and the option to continue or cancel the

adjustments, if applicable) for the current taxable year; or

transaction will be presented. If you accept the convenience

 One hundred percent of the taxpayer's Arizona tax

fee and complete the credit card transaction, a confirmation

liability (reduced by refundable tax credits and claim of

number will be generated. Please keep this confirmation

right adjustments, if applicable) for the prior taxable year.

number as proof of payment.

NOTE: In order for the taxpayer to base its Arizona corporate

Extension of Time to File a Return

estimated tax payments on the prior taxable year's tax liability:

A request for an Arizona extension of time to file a corporate

 The taxpayer's return filed for the prior taxable year must

income tax return is made by filing a completed Form 120EXT

have shown at least some amount of tax liability (an

by the original due date of the return. The taxpayer can use a

amount greater than zero); and

valid federal extension rather than applying for an Arizona

 The taxpayer's return filed for the prior taxable year must

extension. Form 120EXT must be used to transmit extension

have been for a period of twelve months.

payments via check or money order, whether the taxpayer uses

a valid federal extension or requests an Arizona extension.

STIMATED

AYMENTS BY

LECTRONIC

UNDS

RANSFER

Taxpayers that make extension payments over the internet need

Refer to ARS § 42-1129 and the related Arizona Administrative

not file Form 120EXT unless an Arizona extension is being

Code rules (AAC R15-10-301 through R15-10-307) for

requested. If the taxpayer files under extension, the taxpayer

detailed information regarding electronic funds transfer.

must check the extension box (82F) on page 1 of the return.

Effective for taxable years beginning on or after January 1,

The taxpayer must pay 90 percent of the tax liability (including

1997, taxpayers whose Arizona corporate income tax liability

the $50 minimum tax) by the original due date of the return.

for the preceding taxable year was $20,000 or more must make

The department imposes the extension underpayment penalty

Arizona corporate estimated tax payments via the electronic

on any late or underpaid extension payments.

funds transfer program. If the taxpayer makes its estimated tax

The department grants an Arizona extension for a period of

payments by electronic funds transfer (EFT), the taxpayer

six months. Arizona law provides that six months is the

should not submit Form 120ES to the department.

maximum extension of time to file that the department may

Taxpayers required to make estimated tax payments via

grant. However, Arizona law provides that the department

electronic funds transfer must complete the department's

may accept the federal extension for the same period of time

electronic funds transfer authorization agreement at least 30

as covered by the federal extension.

days prior to initiation of the first applicable transaction.

Either the Arizona or federal extension provide an extension

Taxpayers whose Arizona corporate income tax liability for the

of time to file, but do not provide an extension of time to pay.

preceding taxable year was less than $20,000 may elect

Penalties and Interest

voluntary participation in the electronic funds transfer program.

Voluntary participants in the program must complete the

A. Late Filing Penalty. A return filed after the original due

department's electronic funds transfer authorization agreement at

date is subject to the late filing penalty unless the taxpayer has

least 30 days prior to the first applicable transaction.

a valid federal or Arizona extension. A return filed after its

extended due date is also subject to the late filing penalty. The

NOTE: Taxpayers required to make corporate estimated

late filing penalty is 4½ percent (.045) of the amount of tax

payments via EFT that fail to do so are subject to a penalty of

required to be shown on the return. “Amount of tax required to

5%. See ARS § 42-1125(O).

be shown on the return” is the amount of tax imposed less the

STIMATED

AYMENTS VIA THE

NTERNET

amount of any part of the tax paid on or before the beginning

Taxpayers must be licensed by the Department of Revenue before

of the month and the amount of any credit against the tax

they can register to pay taxes online. Visit to

which may be claimed on the return. The penalty period is each

month or fraction of a month between the due date of the return

taxpayer makes its estimated tax payments via the internet, the

and the date the taxpayer filed the return. The maximum

taxpayer should not submit Form 120ES to the department.

penalty is 25 percent of the tax found to be remaining due.

Electronic payment from checking or savings account

B. Extension Underpayment Penalty. The taxpayer must

pay 90 percent of the tax liability disclosed by the taxpayer's

Estimated tax payments can be made electronically from a

return on or before the original due date of the return. The

checking or savings account. Visit and

department imposes the extension underpayment penalty on

choose the e-check option. There is no fee to use this method.

Arizona Form 120a Instruction - Arizona Corporation Income Tax Return (Short Form) - 2011 Page 2

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