Arizona – Electronic Funds Transfer Publication

SALT Report 1333 – The Arizona Department of Revenue has updated their publication regarding electronic funds transfers. ┬áThe publication discusses who must pay taxes electronically, how to register to pay electronically, due dates, and penalties.

Who Is Required To Pay Taxes Electronically?

The Department will use the following criteria to determine which Arizona taxpayers are required to remit their taxes electronically:
  • Withholding Tax – Any taxpayer with $20,000 average quarterly liability for withholding tax during the prior tax year
  • Corporate Estimated Tax – Any corporation with $20,000 prior tax year liability
  • Transaction Privilege Tax – Any taxpayer with $1,000,000 prior tax year liability
For your payment to be timely, it must be received by the department on the due date of the payment. If you use the ACH-Debit method, you must submit your payment on before 5:00 PM MST the business day prior to your due date. If you use the ACH-Credit method, consult your bank for the time frame available for initiating your transaction.
Late Payments
A penalty will be imposed if the payment comes in after the deadline. If this should occur and you feel you are not responsible, you will be asked to furnish the following information to the Penalty Review Unit:
  • Payment details, including the confirmation number, if you are using the ACH-Debit method, and
  • A copy of your bank statement confirming that the funds were debited from your account on the due date if you use the ACH-Credit method
Failure to Pay Electronically

A 5% penalty will be imposed on all taxpayers mandated to pay electronically but fail to do so. Penalty abatement instructions are available in Publication 700.

For Further Information:

Arizona Department of Revenue – Publication 650, Electronic Funds Transfer