Instructions For Arizona Form 120w - Estimated Tax Worksheet For Corporations - 2015

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Arizona Form
2015 Estimated Tax Worksheet for Corporations
120W
as follows: [income tax plus tax from recapture of tax credits]
Obtain additional information or assistance by calling one of
less [nonrefundable tax credits and refundable tax credits]; or
the numbers listed below:
Phoenix
(602) 255-3381
Claim of right adjustments (Forms 120 and 120A): A
From area codes 520 and 928, toll-free
(800) 352-4090
taxpayer that computes its tax liability under the claim of
right provisions should base its estimated tax liability on the
Obtain tax rulings, tax procedures, tax forms and instructions,
net tax liability computed under the claim of right provisions.
and other tax information by accessing the department's
website at
Line 2 - Required Annual Payment
The Arizona required annual payment of estimated tax is the
General Instructions
smaller of:
Who Is Required To Make Arizona Estimated Tax
(a) All taxpayers - ninety percent of the taxpayer's Arizona
Payments
tax liability (reduced by any refundable tax credits and
Entities filing Forms 99T, 120, 120A, or 120S that expect an
the claim of right adjustment, if applicable) for the
Arizona tax liability for the taxable year of at least $1,000 are
current taxable year; or
required to make Arizona estimated tax payments.
(b) Forms 99T, 120, and 120A - one hundred percent of the
A unitary group of corporations filing a combined return on
taxpayer's Arizona tax liability (reduced by any
Form 120 must make estimated tax payments on a combined
refundable tax credits and the claim of right adjustment,
basis. Therefore, a unitary group, as a single taxpayer, must
if applicable) for the prior taxable year.
make estimated tax payments if its Arizona tax liability for
the taxable year is at least $1,000.
Form 120S - an amount equal to the sum of: (a) ninety
percent of the portion of the current taxable year's
An Arizona affiliated group filing a consolidated return
Arizona tax liability that is attributable to built-in gains
pursuant to Arizona Revised Statutes (A.R.S.) § 43-947 on
income or certain capital gains income and (b) one
Form 120 must make estimated tax payments on a
hundred percent of the portion of the prior taxable year's
consolidated basis. Therefore, an Arizona affiliated group, as
Arizona tax liability that is attributable to excess net
a single taxpayer, must make estimated tax payments if its
passive income.
Arizona tax liability for the taxable year is at least $1,000.
Rounding Dollar Amounts
NOTE: Forms 99T, 120, and 120A filers must meet certain
conditions in order to make estimated tax payments equal to
Taxpayers must round amounts to the nearest whole dollar. If
one hundred percent of the prior taxable year's tax liability.
50 cents or more, round up to the next dollar. If less than 50
(See instructions for line 2b.)
cents, round down.
Form 120S filers may not use one hundred percent of the
Specific Instructions
prior taxable year's tax liability. In addition, Form 120S
filers must meet certain conditions in order to make estimated
All taxpayers who are required to make estimated tax
tax payments equal to the amount calculated in (b) above.
payments should use Form 120W to compute the required
(See instructions for line 2c.)
annual payment of estimated tax and the required installments.
NOTE: Several legislative changes are scheduled to be
Line 2a - (All Taxpayers)
effective for tax year 2015. These changes may be affected by
Multiply line 1 by 90 percent. Enter the result on line 2a.
future legislation.
nd
Line 2b - (Forms 99T, 120 and 120A)
- Laws 2011, 2
Special Session, Chapter 1, Section 105,
lowers the corporate tax rate from 6.5% to 6.0%.
Determine the amount of the taxpayer's Arizona tax liability
Changes to the calculation of the sales factor of the apportionment
from the prior taxable year (reduced by any refundable tax
ratio are scheduled to be available for tax year 2015.
credits and the claim of right adjustment, if applicable). Enter
nd
- Laws 2011, 2
Special Session, Chapter 1, Section 106,
this amount on line 2b.
allows all non-air carrier taxpayers to select an enhanced
DO NOT COMPLETE THIS LINE IF: (1) a return was not
apportionment ratio where the sales factor is weighted at
filed for the 2014 taxable year showing at least some amount
90% and the property and payroll factors are each weighted
of tax liability (an amount greater than zero); OR (2) the 2014
at 5%.
taxable year was a period of less than twelve months. Skip
- Laws 2012, Chapter 2, Section 1, provides a binding
line 2b and enter the amount from line 2a on line 2d.
election for a multistate service provider, as defined, to
Line 2c - (Form 120S)
determine sales of services by the sum of 90% of the market
Enter an amount on line 2c that is the sum of:
sales and 10% of income producing activity sales.
Ninety percent of the portion of the 2015 Arizona tax
Line 1 - Arizona Tax Liability
liability that is attributable to built-in gains income or
certain capital gains income; plus
This amount is the taxpayer's estimated tax liability for the
current taxable year. The Arizona tax liability is determined

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