As of January 1st, 2020 the Arizona Department of Revenue (AZ DOR) implemented mandatory electronic filing requirements. Failure to file and/or pay electronically now results in substantial penalties.
- Paper-filed returns: 5% penalty
- Check payments: 5% penalty
So if you file a paper return and mail a check payment, AZ DOR can tack on a 10% penalty!
Annual Liability Threshold
The annual liability for 2020 Arizona Transaction Privilege and Use Tax (AZ-TPT) has been lowered to $5,000 or more. That threshold is expected to drop to $500 in 2021.
How to File & Pay Electronically
- Log in at AZtaxes.gov
- Business registration required
- Choose “File” or “Pay” from menu on the left
Download AZ Form TPT-2 or Instructions
- Visit AZDOR.gov
- Navigate to “Forms”
- Search for “TPT-2”
- Click “TPT-2 Transaction Privilege, Use and Severance Tax Return”
- Click “Download” below “FORM” or “INSTRUCTIONS”