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State of Arizona
Department of Revenue
Setting the Standard for Tax Services
 

Requirement to Remit Payment by EFT

What is the Arizona statute (law) that requires a payment to be remitted by EFT?

Arizona Revised Statute § 42-1129. This statute and all other Arizona statutes are available using the Arizona Revised Statutes link on the Legal Research page of our website.

What is the Arizona statute (law) that prescribes this penalty for failure to make payment by EFT?

Arizona Revised Statute § 42-1125, subsection O. This statute and all other Arizona statutes are available using the Arizona Revised Statutes link on the Legal Research page of our website.

When is the effective date of the new penalty?

March 1, 2011.

When was this decision made by the Arizona Legislature?

Forty-ninth Legislature, 7th Special Session 2010, House Bill 2012 (Chapter 12). Detailed summary of the bill can be found at www.azleg.gov.  2009-2010 Legislative Summaries can also be found on the home page of our website under Reports and Research.

How much is the penalty?

Five percent of the amount of the payment not made by EFT.

Who is required to make payment by EFT?

1. A withholding taxpayer whose average Arizona quarterly withholding liability during the prior calendar year was twenty thousand dollars or more.
2. A corporate taxpayer whose corporate income tax liability was twenty thousand dollars or more during the prior tax year.
3. A TPT/Use taxpayer whose annual tax liability was one million dollars or more during the prior calendar year.

What if I chose not to remit payment via EFT?

A taxpayer who is required to make payment by EFT but who fails to do so is subject to the civil penalty prescribed by Arizona Revised Statute § 42-1125, subsection O.

If I am assessed the penalty, can I request the penalty be abated?

Yes.  After you have received a bill for the penalty assessment, you can request an abatement of penalty.  Penalty Abatement instructions are available on Publication 700.  This is available on our website under Publications.

Who is affected by this change?

Taxpayers required to remit payment for Transaction Privilege and Use Tax, Withholding Tax or Corporate estimated payments by EFT.

How do I make arrangements to pay by EFT?

You must be registered to use www.AZTaxes.gov:

 Registered Users: Log on to www.AZTaxes.gov and sign in to your account. From the "Business List", click on the business account name that you want to register to use the ACH Debit option. Go to “Business Registration” on the menu to the left of the page. Then click on “ACH Debit” at the bottom. Read the instructions, enter all the required information on the EFT ACH Debit Registration page, and submit your registration. You must do this for each business affected by the EFT requirement.
 
Non-Registered Users: Log on to www.AZTaxes.gov and under the Businesses category, select Enroll to File and Pay Online. Place a check mark in the box indicating you choose to register for www.AZTaxes.gov, enter all of the required information and submit your registration. You will receive a confirmation instructing you to download and print a signature document.
 
Complete the signature document and mail it to the address indicated. It may take up to ten business days to complete processing of the signature document. Once processed, you will receive email confirmation; it will include your Username and a temporary Password. Log on to your account on www.AZTaxes.gov and register your business for ACH Debit by following the instructions provided above for Registered Users.

How long will it take before I receive confirmation of my registration for AZTaxes?

After receipt of the completed signature document, it may take up to ten business days to process. Once the document has been processed you will receive an email confirmation. 

NOTE: To avoid delays, it is important that you review your signature document for accuracy before submitting. Please verify that the name and signature are in accordance with the type of business and ownership. If the required name or signature is incorrect, the signature document will be rejected.

How long will it take before I receive confirmation of my registration for ACH Debit?

Upon submitting your completed ACH Debit registration, you will receive immediate confirmation and can begin making your EFT payments on www.AZTaxes.gov.

Who can I contact if I have questions?

Call Taxpayer Information and Assistance at 602-255-2060 or you can call toll-free within Arizona at 1-800-843-7196.  Office hours are Monday through Friday from 8:00am to 5:00pm