ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature

First Regular Session

House: WM DP 10-0-0-0

HB 2114: income tax; returns; filing extension.

Sponsor:  Representative Bolick, LD 20

Caucus and COW

Overview

The due date for an income tax return for a taxpayer filing a corporate, partnership or exempt organization return that has been granted an extension will be seven months from the initial due date.

History

The Department of Revenue may grant an automatic extension for filing an income tax return due under title 43 if at least 90% of the tax liability has been paid and the request is received or mailed on or before the date the return is due. If 90% of the tax liability has not been paid at the time for filing for extension, then the tax payer is subject to a penalty of one-half of one percent of the tax not paid for each thirty-day period or fraction of a thirty-day period between when the tax is due and when it is paid. The maximum penalty that can be imposed is 25%. An extension or extensions may not aggregate more than six months after the due date provided for the filing of returns. If a taxpayer is granted an extension to file for a federal income tax, then the taxpayer is deemed to have been granted the same extension for filing an Arizona income tax return for the same period. (A.R.S. § 42-1107)

Provisions

1.    ☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteStates that the due date for an income tax return for a taxpayer filing a corporate, partnership or exempt organization that has been granted an extension is seven months after the initial due date. (Sec. 1)

2.    States an extension may not aggregate more than six months, except for the filing of a corporate, partnership or exempt organization. (Sec. 1)

3.    Adds language that will exempt a business that files a return as a small business corporation. (Sec. 1)

4.    Adds a retroactivity clause to taxable years beginning January 1, 2021. (Sec. 2)

5.    Contains technical changes. (Sec. 1)

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9.                      HB 2114

10.  Initials VP  Page 0 Caucus & COW

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