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Arizona Form 120X

Line C5 - Average Apportionment Ratio

Standard Sales Factor

Divide the total ratio, line C4, column C, by ten. Enter the

Line C3e -

average ratio amount here and on page 1, line 9, column (c).

Express the ratio as a decimal carried out to six places.

NOTE: Multiply the amount entered on line C3c, column A,

the total Arizona sales, by two (double weighted sales factor)

NOTE: The taxpayer must exclude a factor if both the

on line C3d, column A. Enter the result on line C3e,

numerator and the denominator of a factor are zero. Do not

column A. Do not double the amount entered on line C3c,

exclude a factor from the total ratio (line C4, column C) if the

column B, the everywhere sales of the taxpayer.

numerator of a factor is zero and the denominator of a factor

is greater than zero. If the property or payroll factor is

EXAMPLE: The taxpayer has total Arizona sales of $100,000 and

excluded, determine the average ratio (line C5, column C) by

total everywhere sales of $1,000,000. On line C3e, column A,

dividing the total ratio by nine. If the sales factor is excluded,

enter $200,000 of Arizona sales. On line C3e, column B, enter

determine the average ratio by dividing the total ratio by two.

$1,000,000 of everywhere sales for the taxpayer.

If two of the factors are excluded, the remaining factor,

The sales factor ratio in column C of line C3e may, in certain

without respect to any weighting, is the apportionment ratio.

circumstances, exceed 100 percent. However, since the total

ratio (line C4) is divided by four, the average ratio (line C5)

Schedule D – Schedule of Payments

will not exceed 100 percent.

List the payment sent with the original return and all payments

Line C5 - Average Apportionment Ratio

made by the taxpayer after the original return was filed.

Divide the total ratio, line C4, column C, by four. Enter the

If additional space is required to list all of the payments,

average ratio amount here and on page 1, line 9, column (c).

prepare a schedule (in the same format) labeled “Schedule D –

Express the ratio as a decimal carried out to six places.

Schedule of Payments” and attach the schedule to Form 120X.

NOTE: The taxpayer must exclude a factor if both the

DO NOT include the claim of right credit computed under

numerator and the denominator of a factor are zero. Do not

A.R.S. § 43-1130.01 in this schedule.

exclude a factor from the total ratio (line C4, column C) if the

numerator of a factor is zero and the denominator of a factor is

DO NOT include amounts paid for penalties and interest or

greater than zero. If the property or payroll factor is excluded,

payments reported on page 1, line 23.

determine the average ratio (line C5, column C) by dividing the

Enter the total on Schedule D, line D4, and on page 1, line 24.

total ratio by three. If the sales factor is excluded, determine the

average ratio by dividing the total ratio by two. If two of the

Schedule E – Explanation of Changes

factors are excluded, the remaining factor, without respect to

any weighting, is the apportionment ratio.

Explain the changes made in this return. If additional space is

needed, prepare a schedule (in the same format) labeled

Enhanced Sales Factor

“Schedule E – Explanation of Changes” and attach the schedule

to the Form 120X. Include any necessary supporting

Line C3e -

documentation with the return.

NOTE: Multiply the amount entered on line C3c, column A,

Certification

the total Arizona sales, by eight on line C3d, column A. Enter

the result on line C3e, column A. Do not multiply the amount

One or more of the following officers (president, treasurer, or

entered on line C3c, column B, the everywhere sales of the

any other principal officer) must sign the return.

taxpayer, by eight.

Paid preparers: Sign and date the return. Complete the firm

EXAMPLE: The taxpayer has total Arizona sales of $100,000

name and address lines (the paid preparer’s name and

and total everywhere sales of $1,000,000. On line C3e, column A,

address, if self-employed). Enter the paid preparer’s TIN,

which is the firm’s EIN or the individual preparer’s social

enter $800,000 of Arizona sales. On line C3e, column B, enter

security number.

$1,000,000 of everywhere sales for the taxpayer.

The sales factor ratio in column C of line C3e may, in certain

Interest

circumstances, exceed 100 percent. However, since the total

The department will calculate any interest due and will either

ratio (line C4) is divided by ten, the average ratio (line C5)

include it in the refund or bill the taxpayer for the interest.

will not exceed 100 percent.

Obtain information and current interest rates by contacting

one of the numbers listed on page 1 of these instructions.

Interest rate tables are also available on the department’s

Internet home page at the address listed on page 1 of these

instructions.

Instructions For Arizona Form 120x - Arizona Amended Corporation Income Tax Return - 2013 Page 6

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