The Arizona Department of Revenue (DOR) has issued a ruling stating that the impact of the COVID-19 pandemic constitutes a reasonable basis for business owners and operators’ inability to timely file or pay transaction privilege taxes (TPT), which also includes county excise taxes and municipal privilege taxes. The DOR has further determined that such taxpayers’ failure to timely file or pay does not stem from willful neglect. As such, the DOR has approved abatement of late filing and payment penalties due to COVID-19 for TPT periods beginning February 1, 2020. This includes the period from January 1, 2020 to March 30, 2020 for quarterly filers. This ruling will continue until further notice is issued by the DOR. All returns and payments must be made before the penalty abatement can be applied to the account. For details on how to request penalty abatement due to COVID-19, visit the Arizona DOR webpage. (TPR 20-1, Arizona Department of Revenue, July 14, 2020; TPP 20-1, Arizona Department of Revenue, July 14, 2020)