Instructions For Form 99t - Arizona Exempt Organization Business Income Tax Return - 2014 Page 10
ADVERTISEMENT
1
2
3
4
5
6
7
8
9
10Arizona Form 99T
Allocate the compensation of officers and employees who
EXAMPLE: The organization has Arizona sales of $100,000 and
perform services partly within and partly without Arizona to
everywhere sales of $1,000,000. On line A3f, column A, enter
this state when:
$8,500,000 of Arizona sales. On line A3f, column B, enter
$1,000,000 of everywhere sales for the organization.
The services performed outside of Arizona are incidental
The sales factor on line A3f, column C, may, in certain
to the employee's service within Arizona; or
circumstances, exceed 100%. However, since the total ratio
The employee's base of operation is in Arizona; or
(line A4, column C) is divided by 100, the average ratio (line
The employee has no base of operation in any state, but the
A5, column C) will not exceed 100%.
direction or control of the employee is from this state; or
Line A5 - Average Apportionment Ratio
The employee has no base of operation in any state, and
Divide the total ratio, line A4, column C, by 100. Enter the
there is no direction or control from a state in which the
average ratio here and on page 1, line 4. Express the ratio as a
employee performs some part of his services, but the
decimal carried out to six places.
employee's residence is in this state.
NOTE: The organization must exclude a factor if both the
Compute the payroll factor numerator by multiplying the total
numerator and the denominator of a factor are zero. Do not
amount of Arizona payroll ( line A2a, column A) by 7.5. Do
exclude a factor if the numerator of the factor is zero and the
not multiply the payroll factor denominator by 7.5. Next, for
denominator of a factor is greater than zero. If the property or
line A2c, divide column A by column B and enter the
payroll factor is excluded, determine the average ratio (line A5,
resulting ratio in column C. Express the ratio as a decimal
column C) by dividing the total ratio by 92.5. If the sales factor
carried out to six places. The property factor on line A2c,
is excluded, determine the average ratio by dividing the total
column C, may exceed 100%.
ratio by 15. If two of the factors are excluded, the remaining
Line A3 - Sales Factor
factor, without respect to any weighting, is the apportionment
ratio.
Gross receipts means gross sales less returns and allowances.
Gross receipts includes interest income, service charges,
Certification
carrying charges, and time price differential charges incidental
to such sales.
An executive officer of the organization must sign the return.
Determine sales within this state on a destination sales basis.
Paid preparers: Sign and date the return. Complete the firm
name and address lines (the paid preparer’s name and
NEW: Line A3b is only for the multisite service providers
address, if self-employed). Enter the paid preparer’s TIN,
who want to make the election under A.R.S. § 43-1147(B).
which is the firm’s EIN or the individual preparer’s social
Enter on line A3b, column A, the Arizona sales from services
security number.
from the Schedule MSP, line B5.
For taxable years beginning from and after December 31,
2013, a multistate service provider may elect to treat sales
from services as being in Arizona based on a combination of
income producing activity sales and market sales prescribed
under A.R.S. § 43-1147(B). Taxpayers who want to make
the election should check the applicable boxes on line E on
page 1 of the return and include the completed Schedule MSP
with the tax return. Refer to A.R.S. § 43-1147 and Schedule
MSP instructions for more information.
Other taxpayers who are not qualified for the election should
use line A3c for sales from services and are not required to
include the Schedule MSP with the tax return.
Complete line A3 as follows:
Multiply the amount entered on line A3d, column A, the
total Arizona sales, by 85 on line A3e, column A. Enter
the result on line A3f, column A.
Do not multiply the amount entered on line A3d, column B,
the everywhere sales of the organization, by 85.
10
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Financial