A.R.S. tit. 43 ch. 3 — Arizona Revised Statutes Title 43 Chapter 3 — Returns

43-301. Individual returns; definition A. A full-year or part-year resident individual shall file a return with the department if, for the taxable year, the individual's gross income was greater than the amount of the standard deduction allowed under subsection 43-1041, subsection A as adjusted for inflation pursuant to section 43-1041, subsection H. B. A nonresident individual shall file a return with the department if, for the taxable year, the individual's gross income was greater than the amount under subsection A of this section determined for a full-year or part-year resident individual multiplied by the percentage that the individual's Arizona gross income is of the individual's federal adjusted gross income. C. In the case of a husband and wife, the spouse who controls the disposition of or who receives or spends community income as well as the spouse who is taxable on such income is liable for the payment of taxes imposed by this title on such income. If a joint return is filed, the liability for the tax on the aggregate income is joint and several. D. This section applies regardless of whether an individual is required to file a return under the internal revenue code or whether the individual has any federal adjusted gross income for the taxable year. E. For the purposes of this section, "gross income" means gross income as defined in the internal revenue code minus income included in gross income but excluded from taxation under this title. 43-302. Arizona small business income tax return; election; revocation A. For taxable years beginning from and after December 31, 2020, a small business taxpayer may elect to file a return for the taxable year with the department to report that small business taxpayer's share of Arizona small business gross income. The election shall be made separately for each taxable year and is effective by reporting Arizona small business adjusted gross income on a timely filed Arizona small business income tax return. B. The election under subsection A of this section may be revoked on a timely filed amended Arizona small business income tax return and a corresponding Arizona individual income tax return. 43-303. Returns by agent or guardian If the taxpayer is unable to make his own return, the return shall be made by a duly authorized agent or by the guardian or other person charged with the care of the person or property of the taxpayer. 43-304. Fiduciary returns A. Every fiduciary, except a receiver appointed by authority of law in possession of part only of the property of an individual, shall make a return for any of the following taxpayers for whom the fiduciary acts: 1. Every individual who is required to file an individual income tax return under section 43-301. 2. Every estate or trust that has Arizona taxable income for the taxable year. 3. Every estate or trust of which the gross income for the taxable year is $5,000 or over, regardless of the amount of the Arizona taxable income. 4. Every decedent, for the year in which death occurred and for prior years, if returns for such years should have been filed but have not been filed by the decedent, under such rules as the department may prescribe. B. Any fiduciary required to make a return for an individual is subject to the provisions of this title that apply to individuals. 43-305. Fiduciary returns; two or more fiduciaries Under such rules and regulations as the department may prescribe, a return filed by one of two or more joint fiduciaries is sufficient. The fiduciary filing the return shall state: 1. That he has sufficient knowledge of the affairs of the taxpayer for whom the return is made to enable him to make the return. 2. That the return is, to the best of his knowledge and belief, true and correct. 43-306. Partnership returns A. Except as provided in subsections B and C of this section, every partnership shall make a return for each taxable year, stating the taxable income computed in accordance with subtitle A, chapter 1, subchapter K of the internal revenue code and any adjustments required pursuant to chapter 14 of this title. The return shall include the names and addresses of the individuals, whether residents or nonresidents, who would be entitled to share in the taxable income if distributed and the amount of the distributive share of each individual. The allocation and apportionment of income of a partnership that has nonresident partners shall be made pursuant to chapter 11, article 4 of this title. The return shall contain or be verified by a written declaration that it is made under the penalties of perjury and signed by one of the partners. B. An out-of-state partnership that is temporarily in this state and whose only income in this state is from performing disaster recovery from a declared disaster during a disaster period as defined in section 42-1130 is not required to file a partnership return in this state. C. A partnership that has no Arizona income, deductions or credits for a taxable year is not required to file a partnership return for that year. 43-307. Corporation returns A. Every corporation subject to the tax imposed by this title shall make a return to the department. Every corporation return required by this title to be filed with the department shall be signed by one or more of the following officers: 1. The president. 2. The treasurer. 3. Any other principal officer of the taxpayer. B. If receivers, trustees in bankruptcy or assignees are operating the property or business of a corporation, such receivers, trustees or assignees shall make returns for such corporation in the same manner and form as such a corporation is required to make a return. Any tax due on the basis of returns made by receivers, trustees or assignees shall be collected in the same manner as if collected from the corporation of whose business or property they have custody and control. C. This section applies regardless of whether a corporation is required to file a return under the internal revenue code or whether the corporation has any federal taxable income for the taxable year. D. An out-of-state corporation that is temporarily in this state and whose only income in this state is from performing disaster recovery from a declared disaster during a disaster period as defined in section 42-1130 is not required to file a corporation return in this state. This subsection does not preclude the corporation from being included in a consolidated or combined group return subject to section 42-1130, subsection C. 43-308. Gross income defined for purposes of determination to file For purposes of this article, the term "gross income" shall be gross income as defined in the internal revenue code. 43-309. Joint returns of husband and wife If a husband and wife are required to file a return pursuant to section 43-301, they may file a joint return under the following conditions: 1. A joint return shall not be made if husband and wife have different taxable years. If such taxable years begin on the same day and end on different days because of the death of either or of both, the joint return may be made with respect to the taxable year of each. Such an exception does not apply if the surviving spouse remarried before the close of the surviving spouse's taxable year or if the taxable year of either spouse is a fractional part of a year under section 43-931. 2. In the case of the death of one or both spouses, the joint return with respect to the decedent may be made only by the decedent's executor or administrator, except that in the case of the death of one spouse the joint return may be made by the surviving spouse with respect to both the surviving spouse and the decedent if all of the following apply: (a) A return for the taxable year has not been made by the decedent. (b) An executor or administrator has not been appointed. (c) An executor or administrator is not appointed before the last day prescribed by law for filing the return of the surviving spouse. If an executor or administrator of the decedent is appointed after the making of the joint return by the surviving spouse, the executor or administrator may disaffirm the joint return by making, within one year after the last day prescribed by law for filing the return of the surviving spouse, a separate return for the taxable year of the decedent with respect to which the joint return was made, in which case the return made by the survivor shall constitute the survivor's separate return. 3. For the purposes of this section, the status as husband and wife of two individuals having taxable years beginning on the same day shall be determined: (a) If both have the same taxable year, as of the close of such year. (b) If one dies before the close of the taxable year of the other, as of the time of such death. 43-310. Separate returns after filing joint returns A. If a husband and wife have filed a joint return for a taxable year for which separate returns could have been made by them under section 43-309, and the time prescribed by this title for filing the return for such taxable year has expired, the spouses may nevertheless make separate returns for such taxable year. Separate returns filed by the spouses in such a case shall constitute their returns for such taxable year, and all payments, credits, refunds or other repayments made or allowed with respect to the joint return for such taxable year shall be taken into account in determining the extent to which the taxes based on the separate returns have been paid. B. Separate returns may be filed under subsection A of this section only if there is paid in full all of the following, at or before the time of filing such returns: 1. All amounts previously assessed with respect to both spouses for such taxable year. 2. All amounts shown as the tax by the spouses upon their joint return for such taxable year. 3. Any amount determined, at the time of the filing of the separate returns, as a deficiency with respect to the spouses for such taxable year, if, prior to such filing, a notice of proposed deficiency under section 42-1108 has been mailed. C. Separate returns may not be filed under subsection A of this section: 1. After the expiration of four years from the last date prescribed by this title for filing the return for such taxable year, determined without regard to any extension of time granted for the filing of the joint return. 2. After there has been mailed to the spouses, with respect to such taxable year, a notice of deficiency under section 42-1108, or if the spouses, as to such notice, appeal to the department under section 42-1251, or appeal to the state board under section 42-1253. 3. After the spouses have commenced a suit in court for the recovery of any part of the tax paid for the taxable year with respect to the joint return. 4. After the spouses have entered into a closing agreement under section 42-1113, with respect to such taxable year as to the tax payable by the spouse under their joint return. D. If separate returns are made under subsection A of this section, any election, other than the election to file the joint return, made by the spouses in their joint return for such taxable year with respect to the treatment of any income, deduction or credit shall not be changed in the making of the separate returns where such election would have been irrevocable if the separate returns had not been filed. E. If separate returns are made under subsection A of this section after the death of either spouse, such return with respect to the decedent may be made only by the decedent's personal representative. F. Where the aggregate amount of the taxes shown by the spouses on their separate returns filed pursuant to subsection A of this section exceeds the tax shown on their joint return: 1. If any of such excess is attributable to negligence or intentional disregard of rules and regulations of the department, but without intent to defraud, at the time of making the joint return, then five per cent of the total amount of such excess on each return shall be assessed, collected and paid as if it were a deficiency. 2. If any part of such excess is attributable to fraud with intent to evade tax at the time of the making of the joint return, then fifty per cent of the total amount of such excess shall be so assessed, collected and paid, in lieu of the fifty per cent addition to the tax provided in section 42-1125. G. For the purposes of section 42-1104, relating to periods of limitations upon assessment and collection, and for the purposes of section 42-1125, subsection A, relating to delinquent returns, separate returns made under this section shall be deemed to have been filed on the date on which the joint return was filed. H. For the purposes of section 42-1118, relating to refunds and credits, separate returns made under this section shall be deemed to have been filed on the last date prescribed by this title for filing the return for such taxable year, determined without regard to any extension of time granted for the filing of the joint return. I. If separate returns are made under subsection A of this section, the period of limitations provided in section 42-1104 on the making of assessments and collecting taxes shall, with respect to such returns, include one year immediately after the date of filing of such separate returns, computed without regard to the provisions of subsection G of this section. J. For the purposes of section 42-1125, relating to penalties in the case of fraudulent returns, the term "return" includes a joint return filed by spouses with respect to a taxable year for which separate returns are made under subsection A of this section after the filing of such joint return. 43-311. Joint return after filing separate return A. If an individual has filed a separate return for a taxable year for which the individual and spouse could have filed a joint return under section 43-309, and the time prescribed by this title for filing the return for such taxable year has expired, such individual and spouse may nevertheless make a joint return for such taxable year. A joint return filed by the husband and wife for such taxable year, and all payments, credits, refunds or other repayments made or allowed with respect to the separate return of either spouse for such taxable year, shall be taken into account in determining the extent to which the tax based upon the joint return has been paid. B. A joint return may be made under subsection A of this section only if there is paid in full at or before the time of the filing of the joint return: 1. All amounts previously assessed with respect to either spouse for such taxable year. 2. All amounts shown as the tax by either spouse upon his or her separate return for such taxable year. 3. Any amount determined, at the time of the filing of the joint return, as a proposed deficiency with respect to either spouse for such taxable year if, prior to such filing, a notice under section 42-1108 of such proposed deficiency has been mailed. C. A joint return may not be made under subsection A of this section: 1. After the expiration of four years from the last date prescribed by law for filing the return for such taxable year, determined without regard to any extension of time granted to either spouse. 2. After there has been mailed to either spouse, with respect to such taxable year, a notice of deficiency under section 42-1108, if the spouse, as to such notice, appeals to the department under section 42-1251, or appeals to the state board under section 42-1253. 3. After either spouse has commenced a suit in any court for the recovery of any part of the tax for such taxable year. 4. After either spouse has entered into a closing agreement under section 42-1113, with respect to such taxable year. D. If a joint return is made under subsection A of this section, any election, other than the election to file a separate return, made by either spouse in the separate return for such taxable year with respect to the treatment of any income, deduction or credit of such spouse shall not be changed in the making of the joint return where such election would have been irrevocable if the joint return had not been made. E. If a joint return is made under subsection A of this section after the death of either spouse, such return with respect to the decedent may be made only by the decedent's personal representative. F. Where the amount shown as the tax by the husband and wife on a joint return made under subsection A of this section exceeds the aggregate of the amounts shown as the tax upon the separate return of each spouse: 1. If any part of such excess is attributable to negligence or intentional disregard of rules and regulations, but without intent to defraud, at the time of the making of such separate return, then five per cent of the total amount of such excess shall be assessed, collected and paid as if it were a deficiency. 2. If any part of such excess is attributable to fraud with intent to evade tax at the time of the making of such separate return, then fifty per cent of the total amount of such excess shall be so assessed, collected and paid in lieu of the fifty per cent addition to the tax provided in section 42-1125. G. For the purposes of section 42-1104, relating to periods of limitations upon assessment and collection, and for the purposes of section 42-1125, subsection A, relating to delinquent returns, a joint return made under this section shall be deemed to have been filed: 1. Where both spouses filed separate returns prior to making the joint return, on the date the last separate return was filed, but not earlier than the last date prescribed by this title for filing the return of either spouse. 2. Where one spouse filed a separate return prior to the making of the joint return, and the other spouse had less than one thousand dollars of taxable income and less than five thousand dollars of gross income for such taxable year, on the date of the filing of such separate return, but not earlier than the last date prescribed by law for the filing of such separate return. 3. Where only one spouse filed a separate return prior to the making of a joint return and the other spouse had a taxable income of more than one thousand dollars or a gross income of more than five thousand dollars for such taxable year, on the date of the filing of such joint return. H. For the purposes of section 42-1118, relating to refunds and credits, a joint return made under this section shall be deemed to have been filed on the last date prescribed by this title for filing the return for such taxable year, determined without regard to any extension of time granted to either spouse. I. If a joint return is made under subsection A of this section, the period of limitations provided in section 42-1104 on the making of assessments and collecting taxes shall with respect to such return include one year immediately after the date of the filing of such joint return, computed without regard to the provisions of subsection G of this section. J. For the purposes of section 42-1125, relating to penalties in the case of fraudulent returns, the term "return" includes a separate return filed by a spouse with respect to a taxable year for which a joint return is made under subsection A of this section after the filing of such separate return. 43-312. Information return of sales; nonresident real estate transactions; escrow agents; reports A. A person licensed under section 6-813 to conduct escrow business for the purchase and sale of real property located in this state shall file an information return of sales of real property located in this state that are reported pursuant to federal reporting requirements under section 6045(e) of the internal revenue code. The person shall file the information return required by this subsection: 1. On or before the thirty-first day of March with respect to sales of real property located in this state that are closed on or before December 31 of the preceding calendar year. 2. Using the same form and format of the return filed with the internal revenue service under section 6045(e) of the internal revenue code. B. On or before June 30, 2020, the department shall report to the joint legislative budget committee and the governor's office of strategic planning and budgeting on the estimated amount of capital gains tax paid by nonresidents of this state on real estate transactions in this state from the most recent year before tax year 2019 based on available data from the internal revenue service. On or before June 30 of each year, the department shall estimate and report to the joint legislative budget committee and the governor's office of strategic planning and budgeting on the amount of revenue collected from the sale of real estate by nonresidents that is attributed to the information return prescribed by this section in the prior tax year. 43-321. Information required in returns Each return required to be filed under this title shall contain the following: 1. It shall contain or be verified by a declaration that it is made under penalties of perjury. The declaration shall be written or in a form prescribed by the department pursuant to section 42-1105, subsection B or section 42-1131. 2. A specific statement of the items of the taxpayer's gross income and the adjustments, deductions and credits allowed by this title. 3. Such other information as the department may by rule prescribe for the purpose of carrying out the provisions of this title. 43-322. Signature presumed to be taxpayer's The fact that an individual's name is signed to a return, statement or other document filed, or that the return, statement or document is signed, subscribed or verified in a manner prescribed by the department pursuant to section 42-1105, subsection B, shall be a presumption of fact that the return, statement or other document was actually signed by him. 43-323. Place and form of filing returns A. All returns required by this title shall be in such a form as the department may from time to time prescribe and shall be filed with the department. B. The department shall prescribe a short form return for individual taxpayers who: 1. Are eligible and elect to pay tax based on the optional tax tables pursuant to section 43-1012. 2. Elect to claim the optional standard deduction pursuant to section 43-1041, subsection A, but not the increased amount for charitable deductions under section 43-1041, subsection I. 3. Elect not to file for credits against income tax liability other than those contained in sections 43-1072, 43-1072.01, 43-1072.02, 43-1073 and 43-1073.01. 4. Are not required to add any income under section 43-1021 and do not elect any subtractions under section 43-1022, except for the exemptions allowed under section 43-1023. C. The department may provide a simplified return form for individual taxpayers who: 1. Are eligible and elect to pay tax based on the optional tax tables pursuant to section 43-1012. 2. Are residents for the full taxable year. 3. File as single individuals or married couples filing joint returns under section 43-309. 4. Are not sixty-five years of age or older or blind at the end of the taxable year. 5. Claim no exemptions under section 43-1023 for the taxable year. 6. Elect to claim the optional standard deduction under section 43-1041, subsection A, but not the increased amount for charitable deductions under section 43-1041, subsection I. 7. Are not required to add any income under section 43-1021 and do not elect to claim any subtractions under section 43-1022 or file for any credits under chapter 10, article 5 of this title, except the credits provided by sections 43-1072.01, 43-1072.02 and 43-1073. 8. Do not elect to contribute a portion of any tax refund as provided by any provision of chapter 6, article 1 of this title. Notwithstanding any provision of chapter 6, article 1 of this title, a simplified return form under this subsection shall not include any space for the taxpayer to so contribute a portion of a refund. D. The department shall prepare blank forms for the returns and furnish them on request. Failure to receive or secure the form does not relieve any taxpayer from making any return required. E. An individual income tax preparer who prepares more than ten original income tax returns that are timely filed during any taxable year that begins from and after December 31, 2017 shall file electronically all individual tax returns prepared by that tax preparer, for that taxable year and each subsequent taxable year. An individual income tax preparer may not charge a separate fee to the taxpayer for filing a return using the department's electronic filing program. This subsection does not apply if the taxpayer elects to have the return filed on paper or if the return cannot be filed electronically for reasons outside of the tax preparer's control. F. Fiduciary returns, partnership returns, withholding returns and corporate returns shall be filed electronically for taxable years beginning from and after December 31, 2019, or when the department establishes an electronic filing program, whichever is later. Any person who is required to file electronically pursuant to this subsection may apply to the director, on a form prescribed by the department, for an annual waiver from the electronic filing requirement. The director may grant the waiver, which may be renewed for one subsequent year, if any of the following applies: 1. The taxpayer has no computer. 2. The taxpayer has no internet access. 3. Any other circumstance considered to be worthy by the director exists. G. A waiver is not required if the return cannot be electronically filed for reasons beyond the taxpayer's control, including situations in which the taxpayer was instructed by either the internal revenue service or the department of revenue to file by paper. 43-324. Rounding to the nearest dollar The department may round fractional dollars to the nearest whole dollar and may require the taxpayer to do so in preparing any return under this title. 43-325. Time for filing returns Unless otherwise indicated: 1. Returns made on the basis of the calendar year shall be filed on or before the fifteenth day of April following the close of the calendar year. 2. Returns made on the basis of a fiscal year shall be filed on or before the fifteenth day of the fourth month following the close of the fiscal year. 3. For taxable years beginning from and after December 31, 2015, partnership returns are due on or before the fifteenth day of the third month following the close of the taxable year. 43-327. Recomputation of tax or amended return due after federal adjustment; definition A. If the amount of taxable income for any year of any taxpayer as reported to the United States treasury department is changed or corrected by the commissioner of internal revenue or other officer of the United States or other competent authority, or if a renegotiation of a contract or subcontract with the United States results in a change in taxable income, such taxpayer within ninety days after the final determination of such change or correction or renegotiation shall either: 1. File with the department a copy of the final determination, concede the accuracy of the determination or state any errors and request the department to recompute the tax owed to this state. Recomputing the tax by the department is not considered to be an audit for purposes of section 42-2059. 2. File an amended return as required by the department of revenue. B. For federal changes to which section 43-1414 applies: 1. If the partnership passes through to each partner the partner's distributive share of any adjustments pursuant to section 43-1414, subsection B, paragraph 2, the statement provided to each partner under section 43-1414, subsection B, paragraph 2 is considered to be a change in taxable income of the partner by the commissioner of internal revenue for the taxable year of the partner in which the reviewed year of the partnership ends. The partners shall each file an amended return within one hundred fifty days after the final determination of the partnership adjustments by the internal revenue service to report their share of the partnership adjustments as reported to them in the statement provided by the partnership pursuant to section 43-1414, subsection B, paragraph 2. 2. If the partnership is required to report federal changes and pay the tax pursuant to section 43-1414, subsection B, paragraph 1, the partnership shall file the return required under section 43-1414, subsection A and pay the tax within ninety days after the final determination of the partnership adjustments by the internal revenue service. C. The department may require an amended return if the department lacks the necessary information to recompute the tax owed to this state. D. Any taxpayer filing an amended return with the United States treasury department shall also file within ninety days of the final determination by the United States treasury department an amended return with the department of revenue, which shall contain such information as it shall require. E. For the purposes of this section, assessments under a partial agreement, closing agreement covering specific matters, jeopardy or advance payment are considered part of the final determination and must be submitted to the department with the final determination. F. If a partial agreement, a closing agreement covering specific matters or any other agreement with the United States treasury department would be final except for a federal extension still open for flow through adjustments from other entities or other jurisdictions, the final determination is the date the taxpayer signs the agreement. Flow through adjustments are finally determined based on criteria specified in subsection H of this section. G. The department is not required to issue refunds based on any agreement other than a final determination. H. For the purposes of this section, "final determination" means the appeal rights of both parties have expired or have been exhausted relative to the tax year. 43-328. Returns filed by persons outside the United States If it is determined by the department, under regulations prescribed by it, that by reason of an individual being outside the United States, it is impossible or impractical to perform any one or more of the acts specified in this title, then in determining under this title whether the act was performed within the prescribed time, in respect of any liability for taxes, interest or penalties affected by the failure to perform the act within such time and in determining the amount of any credit or refund, including interest, affected by such failure, there shall be disregarded the period such person was thus unable to conform to the provisions of this title. 43-381. Confidentiality of information if returns prepared by person other than taxpayer; violation; classification A. Except as otherwise provided in section 42-2003 and excluding authorized agents of the department and of the United States internal revenue service, a person who prepares at the request of a taxpayer any report or return required under this title or who receives information from such taxpayer in order to prepare any such report or return shall not disclose to any other person in any manner except by the express permission of the taxpayer any of the information received from such taxpayer. B. Any disclosure or use of such information other than in preparing such report or return in violation of this section is a class 1 misdemeanor. 43-382. Solicitation of return preparation prohibited; classification It is a class 1 misdemeanor for any person to solicit preparation of returns or reports required by this title by offering or giving cash or credit to the taxpayer directly or indirectly based upon all or part of an anticipated refund to the taxpayer indicated by the report or return, or to require by any contract, agreement or pledge an assignment or other transfer of all or any part of an anticipated refund to the taxpayer as indicated by the report or return.