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Arizona Revised Statutes Title 43. Taxation of Income § 43-583. Payment of estimated tax by small business taxpayers; penalty; forms

Current as of January 01, 2025 | Updated by Findlaw Staff

A. A small business taxpayer that is subject to the tax imposed by chapter 17 of this title  1 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 § 43-1711 over any tax credits allowed by chapter 17, article 5.  2

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.  3 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 § 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.

1 Section 43-1701 et seq.
2 Section 43-1741 et seq.
3 Internal Revenue Code sections may be found in Title 26 of U.S.C.A.
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Cite this article: FindLaw.com - Arizona Revised Statutes Title 43. Taxation of Income § 43-583. Payment of estimated tax by small business taxpayers; penalty; forms - last updated January 01, 2025 | https://codes.findlaw.com/az/title-43-taxation-of-income/az-rev-st-sect-43-583/

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