Arizona Booklet 120es - Corporation Estimated Tax Payment

Arizona Form

2014 Estimated Tax Worksheet for Corporations

120W

Line 1 - Arizona Tax Liability

Obtain additional information or assistance by calling one of

the numbers listed below:

This amount is the taxpayer's estimated tax liability for the

Phoenix

(602) 255-3381

current taxable year. The Arizona tax liability is determined

From area codes 520 and 928, toll-free

(800) 352-4090

as follows: [income tax plus tax from recapture of tax credits]

less [nonrefundable tax credits and refundable tax credits]; or

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

and other tax information by accessing the department's

Claim of right adjustments (Forms 120 and 120A): A

Internet home page at

taxpayer that computes its tax liability under the claim of

right provisions should base its estimated tax liability on the

General Instructions

net tax liability computed under the claim of right provisions.

Who Is Required To Make Arizona Estimated Tax

Line 2 - Required Annual Payment

Payments

The Arizona required annual payment of estimated tax is the

Entities filing Forms 99T, 120, 120A, or 120S that expect an

smaller of:

Arizona tax liability for the taxable year of at least $1,000 are

(a) All taxpayers - ninety percent of the taxpayer's Arizona

required to make Arizona estimated tax payments.

tax liability (reduced by any refundable tax credits and

A unitary group of corporations filing a combined return on

the claim of right adjustment, if applicable) for the

Form 120 must make estimated tax payments on a combined

current taxable year; or

basis. Therefore, a unitary group, as a single taxpayer, must

make estimated tax payments if its Arizona tax liability for

(b) Forms 99T, 120, and 120A - one hundred percent of the

the taxable year is at least $1,000.

taxpayer's Arizona tax liability (reduced by any

refundable tax credits and the claim of right adjustment,

An Arizona affiliated group filing a consolidated return

if applicable) for the prior taxable year.

pursuant to Arizona Revised Statutes (A.R.S.) § 43-947 on

Form 120 must make estimated tax payments on a

Form 120S - an amount equal to the sum of: (a) ninety

consolidated basis. Therefore, an Arizona affiliated group, as

percent of the portion of the current taxable year's

a single taxpayer, must make estimated tax payments if its

Arizona tax liability that is attributable to built-in gains

Arizona tax liability for the taxable year is at least $1,000.

income or certain capital gains income and (b) one

Rounding Dollar Amounts

hundred percent of the portion of the prior taxable year's

Arizona tax liability that is attributable to excess net

Taxpayers must round amounts to the nearest whole dollar. If

passive income.

50 cents or more, round up to the next dollar. If less than 50

cents, round down.

NOTE: Forms 99T, 120, and 120A filers must meet certain

conditions in order to make estimated tax payments equal to

Specific Instructions

one hundred percent of the prior taxable year's tax liability.

(See instructions for line 2b.)

All taxpayers who are required to make estimated tax

payments should use Form 120W to compute the required

Form 120S filers may not use one hundred percent of the

annual payment of estimated tax and the required installments.

prior taxable year's tax liability. In addition, Form 120S

filers must meet certain conditions in order to make estimated

NOTE: Several legislative changes are scheduled to be

tax payments equal to the amount calculated in (b) above.

effective for tax year 2014. These changes may be affected by

(See instructions for line 2c.)

future legislation.

- Laws 2011, 2

Special Session, Chapter 1, Section 105,

Line 2a - (All Taxpayers)

lowers the corporate tax rate from 6.968% to 6.5%.

Multiply line 1 by 90 percent. Enter the result on line 2a.

Changes to the calculation of the sales factor of the apportionment

ratio are scheduled to be available for tax year 2014.

Line 2b - (Forms 99T, 120 and 120A)

- Laws 2011, 2

Special Session, Chapter 1, Section 106,

Determine the amount of the taxpayer's Arizona tax liability

allows all non-air carrier taxpayers to select an enhanced

from the prior taxable year (reduced by any refundable tax

apportionment ratio where the sales factor is weighted at

credits and the claim of right adjustment, if applicable). Enter

85% and the property and payroll factors are each weighted

this amount on line 2b.

at 7.5%

DO NOT COMPLETE THIS LINE IF: (1) a return was not

- Laws 2012, Chapter 2, Section 1, provides a binding

filed for the 2013 taxable year showing at least some amount

election for a multistate service provider, as defined, to

of tax liability (an amount greater than zero); OR (2) the 2013

determine sales of services by the sum of 85% of the market

taxable year was a period of less than twelve months. Skip

sales and 15% of income producing activity sales.

line 2b and enter the amount from line 2a on line 2d.

- Laws 2013, Chapter 236, Section 10, expands the definition of

a multistate service provider to include a qualifying regionally

accredited institution of higher education.

Arizona Booklet 120es - Corporation Estimated Tax Payment - 2014 Page 3

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