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February 5, 2021
2021-0270

Arizona DOR provides annual withholding tax filing extension and electronic filing waiver due to technical issues

The Arizona Department of Revenue announced that due to technical issues with the AZTaxes.gov website, a 60-day waiver from the electronic filing mandate is provided for the filing of withholding tax returns. During the 60-day waiver period, employers may file their annual and quarterly withholding returns by paper.

In addition, the February 1, 2021 due date for 2020 Forms A1-R, Arizona Withholding Reconciliation Return, W-2, 1099, and A1-APR, Arizona Annual Payment Withholding Tax Return, is extended by 30 days to March 1, 2021.

No action is required by employers to take advantage of the electronic filing waiver or the 2020 annual return filing due date extension because the Department's technical issues satisfy the good cause requirement.

The Department is also allowing a 10-day grace period for the Form A1-QRT, Quarterly Withholding Tax Return, provided the employer made timely withholding payments for 2020. If the business is not eligible for the 10-day grace period or cannot otherwise file electronically or by paper by February 1, 2021, the department will waive late filing penalties upon request, provided the Form A1-QRT is filed electronically or by paper by March 1, 2021. Employers must complete and submit Form 290, Request for Penalty Abatement.

The penalty grace period is specific to the fourth quarter withholding return that was due February 1, 2021 and covers both the late filing penalty and the electronic filing mandate.

The Department cautions that this is not an extension of time to make withholding payments or to provide the 2020 Forms W-2 and 1099, due January 31, 2021, to employees and contractors.

To assist newly registering AZTaxes.gov users, Department representatives are available to answer questions and provide assistance by phone at +1 602 255 3381 or by the "Live Chat" feature on the Department's website. For more information on Arizona withholding taxes, go here.

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Contact Information
For additional information concerning this Alert, please contact:
 
Workforce Tax Services - Employment Tax Advisory Services
   • Kenneth Hausser (kenneth.hausser@ey.com)
   • Debera Salam (debera.salam@ey.com)
   • Kristie Lowery (kristie.lowery@ey.com)

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