Arizona Amends Electronic Filing Thresholds for Taxpayers

Effective January 1, 2018, the Arizona Department of Revenue has amended regulations governing electronic filing thresholds for taxpayers. For tax periods beginning on or after the following tax years, any taxpayer, other than an individual income taxpayer, that had a tax liability equal to or more than the following amounts during the prior tax year or that can reasonably anticipate tax liability in the current tax year exceeding the following amounts, must remit tax payments electronically and file the required return using an electronic filing program established by the Department:

• January 1, 2018, prior tax year or expected current year tax liability of $20,000;
• January 1, 2019, prior tax year or expected current year tax liability of $10,000;
• January 1, 2020, prior tax year or expected current year tax liability of $5,000;
• January 1, 2021, prior tax year or expected current year tax liability of $500.

For tax periods beginning on or after January 1, 2018, any taxpayer, other than an individual income taxpayer that does not meet the new tax liability threshold amounts, may voluntarily participate in the electronic payment process by an submitting an electronic funds transfer authorization agreement to the Department. Failure to comply with the electronic filing requirements could result in the assessment of penalties. (R15-10-302, R15-10-303 and R15-10-505, Arizona Department of Revenue)