A.R.S. tit. 43 ch. 5 — Arizona Revised Statutes Title 43 Chapter 5 — Payment And Collection Of Tax

43-501. When taxes are payable The tax imposed under this title shall be paid on the fifteenth day of April following the close of the calendar year or, if the return is made on the basis of a fiscal year, on the fifteenth day of the fourth month following the close of the fiscal year, except that: 1. For an S corporation the tax imposed shall be paid on the fifteenth day of the third month following the close of the taxable year. 2. For unrelated business taxable income of a tax exempt organization the tax imposed shall be paid on the fifteenth day of the fifth month following the close of the taxable year. 43-504. Tax payments made in advance Any taxpayer may elect to pay the tax prior to the date prescribed for its payment. 43-505. Tax payments made to department; order of crediting A. The tax and any interest and penalties shall be paid to the department. Remittances may be in the form of a check payable to the department during such time and under such regulations as the director may prescribe. If a check is not paid by the bank on which it is drawn, the taxpayer tendering the check shall remain liable for the payment of the tax and all interest and penalties as if he had not tendered the check. B. The department shall credit payments against a taxpayer's unpaid tax liability before crediting payments against any interest or penalties. 43-562. Husband and wife, liability for tax 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 the 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. 43-563. Recovery of erroneous refunds The department of revenue may recover any refund or credit or any portion which is erroneously made or allowed, together with interest at the rate determined pursuant to section 42-1123 from the date the refund was made or the credit allowed, in an action brought within two years after the refund or credit was made in a court of competent jurisdiction in Maricopa county in the name of the department of revenue. The action shall be tried in Maricopa county unless the court with the consent of the department of law orders a change of place of trial. The department of law shall prosecute the action, and the rules of civil procedure in the superior court of Arizona, as amended, relating to service of summons, pleadings, proofs, trials and appeals are applicable to the proceeding. 43-567. Lien for tax on trust income A. Upon the recording of an abstract of judgment or a copy thereof by the department with the county recorder of any county for any taxes, interest and penalties due from the grantor of the trust on income of the trust which is taxable to the grantor under chapter 13 of this title, and upon its giving notice of the recording to the fiduciary or fiduciaries of the trust, the amount of the taxes, interest and penalties constitute a lien upon all property of the trust in the county owned by the trust and any property acquired before the expiration of the lien. The lien has the force, effect and priority of a judgment lien. B. The notice required to be given by subsection A of this section may be served upon the fiduciary personally or by mail. If made by mail, service shall be made by registered mail and shall be addressed to the fiduciary at his address as it appears in the records of the department. 43-581. Payment of estimated tax; rules; penalty; forms A. An individual who is subject to the tax imposed by section 43-1011 and whose Arizona gross income, as defined by section 43-1001, or as described by section 43-1091 in the case of nonresidents, for the taxable year exceeds $75,000 or $150,000 if a joint return is filed and whose Arizona gross income was greater than $75,000 in the preceding taxable year or $150,000 in the preceding taxable year if a joint return is filed shall make payments of estimated tax during the individual's taxable year. The amount of the payments of estimated tax shall be an amount that reasonably reflects a taxpayer's Arizona income tax liability that will be unpaid at the end of the taxpayer's taxable year. This amount shall be paid in four installments on or before the due dates established by the internal revenue code and shall total, when combined with the taxpayer's withholding tax, at least ninety percent of the tax due for the current taxable year or one hundred percent of the tax due for the preceding taxable year. B. Any other individual who is subject to the tax imposed by this title may make payments of estimated tax during the individual's taxable year. The amount of any estimated tax payments for the taxable year shall be an amount that reasonably reflects a taxpayer's Arizona income tax liability that will be unpaid at the end of the taxpayer's taxable year. C. For taxable years beginning from and after December 31, 2021, an entity that is treated as a partnership or S corporation for federal income tax purposes, that elects to pay the tax under section 43-1014 and whose taxable income for the taxable year exceeds $150,000 in the preceding taxable year shall make payments of estimated tax during the taxable year in a manner that is consistent with the manner prescribed in this section for individuals. D. The department shall prescribe rules for the payments of estimated tax that shall provide for estimated payments in a manner similar to the manner prescribed in the internal revenue code. E. If the taxpayer does not pay the estimated tax required by subsection A or C of this section on or before the prescribed dates, there is assessed and the department shall collect a penalty on the unpaid amount as prescribed by section 42-1125, subsection Q. Penalties or interest shall not be assessed or collected if either of the following applies: 1. The estimated tax payments made pursuant to this section are allowable exceptions under section 6654 of the internal revenue code. 2. The taxpayer's Arizona income tax liability due on the taxpayer's return is less than $1,000. For the purposes of this paragraph, "Arizona income tax liability due on the taxpayer's return" means the amount of tax due on the return minus the amount of Arizona income tax withheld and tax credits claimed by the taxpayer. F. The department shall make available suitable forms and instructions to taxpayers who make estimated tax payments pursuant to this article. 43-582. Payment of estimated tax by corporations; penalty; forms A. A corporation that is subject to the tax imposed by this title shall pay estimated tax during the corporation's taxable year if the corporation's tax liability under this title for the taxable year is at least one thousand dollars. The tax liability under this title is the excess of the tax imposed by section 43-1111 over any tax credits allowed by this title. B. Except as otherwise provided in this section, the amount of the required annual payment is the lesser of: 1. Ninety per cent of the tax shown on the return for the taxable year or, if no return is filed, ninety per cent of the tax for that year. 2. One hundred per cent of the tax shown on the corporation's return for the preceding taxable year, except that this paragraph does not apply if: (a) The preceding taxable year was not a taxable year of twelve months. (b) The corporation did not file a return for the preceding taxable year showing a liability for tax. C. The required annual payment under subsection B of this section for a large corporation is the amount prescribed by subsection B, paragraph 1 of this section except for purposes of determining the amount of the first required installment for the taxable year. Any reduction in the first installment by reason of this subsection shall be recaptured by increasing the amount of the next required installment determined under subsection B, paragraph 1 of this section by the amount of the reduction. For the purposes of this subsection, "large corporation" means a corporation or unitary group of corporations if the corporation, or a predecessor corporation, had federal taxable income of one million dollars or more for any of the immediately preceding three taxable years, excluding any federal net operating loss or capital loss carrybacks or carryovers. D. The required annual payment for an S corporation, as defined in section 1361 of the internal revenue code, is the lesser of: 1. The amount determined under subsection B, paragraph 1 of this section. 2. The sum of: (a) The amount determined under subsection B, paragraph 1 of this section for the portion of the tax liability under this title that is attributable to built in gains income or certain capital gains income. (b) One hundred per cent of the tax liability under this title that is attributable to excess passive income on the return of the S corporation for the preceding taxable year. E. For the purposes of subsection D of this section: 1. The requirement that the S corporation's return for the previous taxable year show a liability for tax related to excess passive income does not apply. 2. Subsection D, paragraph 2 of this section does not apply if the preceding taxable year had fewer than twelve months. F. Four installments of payments of estimated tax are required each taxable year. The due dates for the installments are the due dates prescribed by section 6655 of the internal revenue code. Unless otherwise prescribed by this section, the amount of each installment payment is twenty-five per cent of the required annual payment, but a lower required installment payment, as established and in the manner prescribed by section 6655 of the internal revenue code, applies if the lower installment is less than twenty-five per cent of the required annual payment. If a taxable year begins on a date other than January 1, the installment payments are due during months of that fiscal year that correspond to the prescribed months of a calendar year. G. If a taxpayer fails to pay the full amount of estimated tax, or any required installment, under this section, the taxpayer is subject to a penalty, as prescribed by section 42-1125, subsection Q. For the purposes of this subsection: 1. The amount of underpayment is the excess of the required installment payment over the amount, if any, of the installment paid on or before the due date for the payment. 2. A payment of estimated tax shall be credited against unpaid required installment payments in the order in which the installments are required to be paid. H. The department shall: 1. Apply this section to taxable years of less than twelve months according to the treasury regulations for section 6655 of the internal revenue code. 2. Adopt rules that are necessary to administer and enforce this section. 3. Make available suitable forms and instructions to taxpayers that make estimated tax payments pursuant to this section. 43-583. Payment of estimated tax by small business taxpayers; penalty; forms A. A small business taxpayer that is subject to the tax imposed by chapter 17 of this title shall pay estimated tax during the small business taxpayer's taxable year if the small business taxpayer's tax liability under chapter 17 of this title for the taxable year is at least $1,000. The tax liability under chapter 17 of this title is the excess of the tax imposed by section 43-1711 over any tax credits allowed by chapter 17, article 5. B. Except as otherwise provided in this section, the amount of the required annual estimated tax payment is the lesser of: 1. Ninety percent of the tax shown on the return for the taxable year or, if no return is filed, ninety percent of the tax for that year. 2. One hundred percent of the tax shown on the small business income tax return for the preceding taxable year, except that this paragraph does not apply if: (a) The preceding taxable year was not a taxable year of twelve months. (b) The small business did not file a return for the preceding taxable year showing a liability for tax. 3. Zero for taxable years beginning on or before December 31, 2021. C. Four installments of estimated tax payments are required each taxable year. The due dates for the installments are the due dates prescribed by section 6654 of the internal revenue code. Unless otherwise prescribed by this section, the amount of each installment payment is twenty-five percent of the required annual estimated tax payment. If a taxable year begins on a date other than January 1, the installment payments are due during months of that fiscal year that correspond to the prescribed months of a calendar year. D. If a taxpayer fails to pay the full amount of estimated tax or any required installment under this section, the taxpayer is subject to a penalty as prescribed by section 42-1125, subsection Q. For the purposes of this subsection: 1. The amount of underpayment is the excess of the required installment payment over the amount, if any, of the installment paid on or before the due date for the payment. 2. A payment of estimated tax shall be credited against unpaid required installment payments in the order in which the installments are required to be paid. E. The department shall: 1. Adopt rules that are necessary to administer and enforce this section. 2. Make available suitable forms and instructions to taxpayers who make estimated tax payments pursuant to this section.