Arizona Form 120s - S Corporation Income Tax Return

Arizona Form 120S

account, a confirmation number will be generated. Please

which is late or underpaid. For exceptions to the estimated tax

keep this confirmation number as proof of payment.

requirements, see the instructions for Form 220, Underpayment

of Estimated Tax by Corporations.

Credit card payment

The Arizona required annual payment of corporate estimated

Estimated tax payments can be made via American Express,

tax for an S corporation is the smaller of:

Discover,

MasterCard

VISA

credit

cards.

Visit

(a) Ninety percent of the taxpayer's Arizona tax liability for the

and choose the credit card option. This will

current taxable year; OR

take you to the website of the credit card payment service

provider. The service provider will charge a convenience fee

(b) An amount equal to the sum of:

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

(i) Ninety percent of the portion of the current taxable

will disclose the amount of the convenience fee during the

year's Arizona tax liability that is attributable to

transaction and the option to continue or cancel the

built-in gains income or certain capital gains

transaction will be presented. If you accept the convenience

income; plus

fee and complete the credit card transaction, a confirmation

(ii) One hundred percent of the portion of the prior

number will be generated. Please keep this confirmation

taxable year's Arizona tax liability that is attributable

number as proof of payment.

to excess net passive income.

Extension of Time to File a Return

NOTE: In order for the taxpayer to base its estimated tax

The S corporation can apply for an Arizona extension by filing a

payments on the tax liability described in (b) above, the

completed Form 120EXT by the original due date of the return.

taxpayer's return filed for the prior taxable year must have

The S corporation can use a valid federal extension rather than

been for a period of twelve months.

applying for an Arizona extension. Form 120EXT must be used

Taxpayers required to make Arizona corporate estimated tax

to transmit extension payments via check or money order,

payments should use the 2014 Form 120W, Estimated Tax

whether the S corporation uses a valid federal extension or

Worksheet for Corporations, to compute the required installments.

requests an Arizona extension. Taxpayers that make extension

payments over the internet need not file Form 120EXT, unless

STIMATED

AYMENTS BY

LECTRONIC

UNDS

RANSFER

an Arizona extension is being requested. The S corporation must

Taxpayers whose Arizona corporate income tax liability for

pay at least 90 percent of the tax liability (including the $50

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

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

Arizona corporate estimated tax payments via electronic

The department grants an Arizona extension for a period of

funds transfer. Taxpayers whose Arizona corporate income

six months. Arizona law provides that six months is the

tax liability for the preceding taxable year was less than

maximum extension of time to file that the department may

$20,000 may elect voluntary participation in the electronic

grant. However, Arizona law provides that the department

funds transfer program. If a taxpayer makes its estimated tax

may accept the federal extension for the same period of time

payments by electronic funds transfer (EFT), the taxpayer

as covered by the federal extension.

should not submit Form 120ES to the department. Taxpayers

who make estimated tax payments via electronic funds

Either the Arizona or federal extension provide an extension

transfer must complete the department's electronic funds

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

transfer authorization agreement at least 30 days prior to

Penalties and Interest

initiation of the first applicable transaction.

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

Refer to A.R.S. § 42-1129 and the related Arizona Administrative

is subject to the late filing penalty unless the S corporation has a

Code rules (A.A.C. R15-10-301 through R15-10-307) for detailed

valid federal or Arizona extension. A return filed after its

information.

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

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

NOTE: Taxpayers required to make corporate estimated

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

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

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

penalty of 5% of the amount of the payment not made by

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

EFT. See A.R.S. § 42-1125(O).

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

STIMATED

AYMENTS VIA THE

NTERNET

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

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

Taxpayers must be licensed by the department before they can

date the S corporation filed the return. The maximum penalty is

25 percent of the tax found to be remaining due.

and make estimated tax payments over the internet. If a

taxpayer makes its estimated tax payments over the internet,

B. Extension Underpayment Penalty. The department imposes

the taxpayer should not submit Form 120ES to the department.

the extension underpayment penalty on any late or underpaid

extension payments. The extension underpayment penalty is one-

Electronic payment from checking or savings account

half of one percent (.005) of the tax not paid. The penalty period

Estimated tax payments can be made electronically from a

is each 30 day period or fraction thereof between the original due

checking or savings account. Visit and

date of the return and the date the S corporation paid the tax. The

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

maximum penalty is 25 percent of the unpaid tax. Taxpayers

This payment method will debit the amount from the

subject to the extension underpayment penalty are not subject to

specified checking or savings account on the date specified. If

the late payment penalty prescribed under A.R.S. § 42-1125(D).

an electronic payment is made from a checking or savings

Arizona Form 120s - S Corporation Income Tax Return - 2013 Page 2

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