The Arizona Department of Revenue has rolled out its program for electronic filing and payment of the state’s Transaction Privilege Tax (TPT). Per previously enacted legislation, businesses with an annual TPT and use tax liability of $10,000 or more during the previous calendar year are required to file returns and remit tax payments electronically beginning February 2019 for the January reporting period. Taxpayers filing TPT returns electronically during a calendar year are able to claim an increased accounting credit from 1% to 1.2%. This increases the total calendar year credit limit from $10,000 to $12,000. The accounting credit remains at 1% and a total calendar year credit of $10,000 for taxpayers who file paper TPT returns.
In subsequent years, the electronic filing threshold will decrease each year to compel more taxpayers to file electronically. The amount will decrease to $5,000 beginning on January 1, 2020 and then down to $500 on January 1, 2021.
Taxpayers who are required to file and pay electronically will be subject to a penalty of 5% of the tax due if they file a paper return, with a minimum penalty of $25, including filings with zero liability.
For more information and to file and pay TPT online, visit https://azdor.gov/transaction-privilege-tax-tpt.
To see our previous new item on this topic, visit Arizona Amends Electronic Filing Thresholds for Taxpayers. (TPT Newsletter, Arizona Department of Revenue, January 2019)