Arizona Booklet 120es - Corporation Estimated Tax Payment

Arizona Form 120W

excluding any federal net operating loss or capital loss

Line 2c - (Form 120S)

carrybacks or carryovers. An Arizona affiliated group filing a

Enter an amount on line 2c that is the sum of:

consolidated return pursuant to A.R.S. § 43-947 is treated as

Ninety percent of the portion of the 2014 Arizona tax

a single corporation for purposes of applying the large

liability that is attributable to built-in gains income or

corporation definition.

certain capital gains income; plus

A. If the taxpayer

the annualized income

DOES NOT USE

One hundred percent of the portion of the 2013 Arizona tax

installment method or the adjusted seasonal installment

liability that is attributable to excess net passive income.

method, follow the instructions below to compute the

DO NOT COMPLETE THIS LINE IF the 2013 taxable year

amounts to enter on Form 120W, line 4.

was a period of less than twelve months. Skip line 2c and

If line 2a is less than line 2b:

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

Enter 25 percent of line 2a in columns (a) through (d) of

Line 2d - (All Taxpayers)

line 4.

Forms 99T, 120, and 120A: Enter the smaller of line 2a or

If line 2b is less than line 2a:

line 2b (if an amount was entered on line 2b).

Form 120S: Enter the smaller of line 2a or line 2c (if an

Enter 25 percent of line 2b in column (a) of line 4.

amount was entered on line 2c).

Determine the amount to enter in column (b) as follows:

Line 3 - Installment Due Dates

(i) Subtract line 2b from line 2a,

Calendar year and fiscal year basis taxpayers are required to

(ii) Add the result to the amount on line 2a, and

make their Arizona corporate estimated tax payments by the

(iii) Multiply the total in (ii) above by 25 percent.

15th day of the 4th, 6th, 9th, and 12th months of the taxable

Enter 25 percent of line 2a in columns (c) and (d).

year. If the installment due date falls on a weekend or legal

B. If the taxpayer

the annualized income

DOES USE

holiday, the payment is considered timely if made on the next

installment method and/or the adjusted seasonal installment

business day.

method, use the following instructions to determine the

Note for short period returns: Enter the installment due

amounts to enter on the Form 120W, Schedule A, Part III,

dates and number of installments required by the Internal

line 44, columns (a) through (d). Then complete the remainder

Revenue Service.

of the lines in Part III of Schedule A. Enter the amounts from

Line 4 - Required Installments

Schedule A, Part III, line 48, columns (a) through (d) on

Form 120W, line 4, columns (a) through (d).

When making estimated tax payments, be sure to take into

If Form 120W, line 2a is less than line 2b:

account any 2013 overpayment that the taxpayer chose to

credit against its 2014 Arizona tax liability.

Enter 25 percent of line 2a in columns (a) through (d) of

Schedule A, Part III, line 44.

Annualized Income Installment Method and/or Adjusted

Seasonal Installment Method

If Form 120W, line 2b is less than line 2a:

If the taxpayer's income is expected to vary during the taxable

Enter 25 percent of line 2b in column (a) of Schedule A,

year because, for example, it operates its business on a seasonal

Part III, line 44.

basis, it may be able to lower the amount of one or more

Determine the amount to enter in column (b) of Schedule A,

required installments by using the annualized income installment

Part III, line 44 as follows:

method or the adjusted seasonal installment method.

(i) Subtract line 2b from line 2a,

Use Schedule A to calculate the amount of one or more

(ii) Add the result to the amount on line 2a, and

required installments using one or both of these methods. If

(iii) Multiply the total in (ii) above by 25 percent.

Schedule A is used for any payment due date, it must be used

Enter 25 percent of line 2a in columns (c) and (d) of

for all payment due dates.

Schedule A, Part III, line 44.

Use Schedule A to arrive at the amount of each required

installment and to select the lesser of:

Form 120W, Schedule A

the annualized income installment;

Follow the steps below to determine which parts of the

the adjusted seasonal installment (if applicable); or

Form 120W, Schedule A, to complete.

the regular installment (25% of the required annual

If only the annualized income installment method is

payment) increased by any reduction recapture under

used, complete Parts I and III of Schedule A.

IRC § 6655(e)(1)(B).

If only the adjusted seasonal installment method is used,

Instructions for “Large Corporations” (Forms 120 and 120A)

complete Parts II and III of Schedule A.

"Large corporation" means a corporation or unitary group of

If both methods are used, complete all three parts of

corporations if the corporation, or a predecessor corporation,

Schedule A.

had federal taxable income of one million dollars or more for

any of the immediately preceding three taxable years,

Arizona Booklet 120es - Corporation Estimated Tax Payment - 2014 Page 4

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