Corporate E-File is Open for the 2022 Tax Season

Corporations, partnerships, S corporations, and fiduciaries are now able to electronically file their income taxes with the Arizona Department of Revenue (ADOR).

Before preparing tax returns, taxpayers should gather all information and documentation to complete an accurate return.

Mandatory E-file and E-pay Requirements

For businesses, filing electronically is a requirement under certain circumstances: 

• Corporate Estimated Tax - Any corporation with $500 prior tax year liability.
• Mandatory e-file for corporations and partnerships. (A.R.S. § 43-323(F)).

In addition to e-filing being faster and more secure, returns are verified significantly quicker than paper submissions, which benefits taxpayers if any errors require their attention. Due to statutory requirements, complexity, and agency resources, individual income returns are allocated priority above business returns. As a result, on average, electronic corporate, withholding, and partnership returns are processed a couple months faster than paper returns.

When filed electronically, corporations receive two acknowledgments of receipt from both the IRS and ADOR through the software vendor, so they will know their returns have been received and accepted. Additionally, saving time and the amount of paper needed to submit lengthy returns consisting of thousands of documents.

Last tax season, 74 percent of the 165,000 corporate tax returns were e-filed with ADOR.

About a dozen software product options are approved and available for companies to submit corporate, partnership, and S corporation income tax returns. Fiduciaries have about two dozen approved vendors to choose from and submit their returns.

Furthermore, businesses with an annual transaction privilege tax and use tax liability of $500 or more during the prior calendar year must file and pay electronically. Businesses with a $125 or more average quarterly liability for withholding tax during the preceding tax year must file and pay withholding tax electronically.

Businesses seeking more information on the ADOR corporate e-file program can go to https://azdor.gov/e-services/e-services-corporations.

Wednesday, January 19, 2022