Arizona Business Form Help
The following information has been provided to assist in the preparation of Arizona Business Returns.
Arizona Corporation Income Tax Return help.
Indicate whether this is the first Arizona filing for the corporation. Check the appropriate boxes in the Question and Answer area, answering all applicable questions that are not automatically completed from information from the Client Data screen and the Federal return.
Most of the amounts in the calculation of Arizona tax liability, credits and payments will calculate automatically based on information provided on the federal return, later schedules on Form 120, and Arizona forms 220, 300 and 308. Direct entry is available for Arizona basis NOL carryover, checkboxes and amounts from Credit forms 342 and 349, Penalty and Interest, and Amount of overpayment to apply to next year’s estimated tax.
Most Additions to Taxable Income will calculate from the federal return. Direct entry is available for Commissions and other expenses paid or DISC, Capital investment by certified defense contractor, and Additions related to Arizona tax credits. A worksheet is provided for Other Additions to federal taxable income.
Most Subtractions from Taxable Income will calculate from the federal return. Direct entry is available for Dividends received for 50% or more controlled domestic corporations, and Capital investment by certified defense contractor. A worksheet is provided for Other Subtractions from federal taxable income.
Schedule C is used to apportion income to Arizona. When an apportionment method is selected in the General Information section, most entries will automatically load from the federal Multistate Allocation and Apportionment Information. Direct input is available for Other Assets – description, and Non-business property exclusion.
Schedule D is used by Multi-state corporations to calculate Nonapportionable income and expenses. Most of the amounts will calculate from the federal Multistate Allocation and Apportionment Information. A worksheet is provided for Other Income or (Loss), and direct input is available for Expenses attributable to foreign corporation income not subject to Arizona tax.
Schedule E is used by Multi-state corporations to calculate Other income allocated to Arizona. Most of the amounts will calculate from the federal Multistate Allocation and Apportionment Information. Direct input is available for Federal income tax refunds received in the taxable year, and a worksheet is provided for Other Income or (Loss) directly allocable to Arizona.
The Schedule of Tax Payments is required to detail the record of Estimated and Extension payments for the taxable year.
Schedule G – Other Information is required to be completed. The tax accounting method is calculated from the federal Client Data screen.
Use Form 120X to amend Form 120, Arizona Corporation Income Tax Return.
Answer all applicable questions in the top section of Form 120X. The apportionment method will calculate from Form 120. Income, deductions and credits as originally reported will appear in both Columns (a) and (c), and as changes are made to Form 120, column (c) will calculate from that input, except for Penalty and Interest, and the Amount of overpayment to apply to the next year’s estimated tax, which both have direct input available. Net Change – column (b) will automatically calculate, as will Schedule C (Apportionment). Schedule D (Payments) is partly calculated, and partly direct input.
Arizona S Corporation Income Tax Return help.
Indicate whether this is the first Arizona filing for the corporation, and if the return is filed under extension. Complete the Question and Answer area, answering all applicable questions that are not automatically completed from information from the Client Data screen and the Federal return. The checkbox NMMD will automatically check once the NMMD Registry number is entered.
Most of the amounts in the calculation of Arizona tax liability, credits and payments will calculate automatically based on information provided on the federal return, later schedules on Form 120S, and Arizona forms 220, 300 and 308. Worksheets are provided for Nonapportionable or allocable income, and Other income allocated to Arizona. Direct entry is available for checkboxes and amounts from Credit forms 342 and 349, Penalties and Interest, and Amount of overpayment to apply to next year’s estimated tax.
Schedule A is used to apportion income to Arizona. When an apportionment method is selected in the General Information section, most entries will automatically load from the federal Multistate Allocation and Apportionment Information. Direct input is available for Other Assets – description, and Non-business property exclusion.
Schedule B – Other Information is required to be completed. The tax accounting method is calculated from the federal Client Data screen.
Schedule C – Shareholder Information: To load the Worksheet, X the box for Check here to load Schedule C.
Complete a Schedule 120S K-1 for each shareholder. Information will flow to each K-1 from the corresponding federal Schedule K-1.
The K-1 worksheet allows for selecting which type of state K-1 to file (Resident or Non-resident) for each shareholder, or enter the state of residency to determine which one is to be completed.
Arizona Partnership Income Tax Return help.
Indicate whether this is the first Arizona filing for the partnership, and if the return is filed under extension. Complete the Question and Answer area, answering all applicable questions that are not automatically completed from information from the Client Data screen and the Federal return.
Most of the amounts in the Adjustment of Partnership Income from Federal to Arizona basis schedules will calculate automatically based on information provided on the federal return. Worksheets are provided for Other additions and Other subtractions. Direct entry is available for Capital investment by certified defense contractor, Additions related to Arizona tax credits, Difference in adjusted basis of property, Agricultural crops charitable contribution, and Penalty for late or incomplete filing.
Schedule C is used to apportion income to Arizona. When an apportionment method is selected in the General Information section, most entries will automatically load from the federal Multistate Allocation and Apportionment Information. Direct input is available for Other Assets – description, and Non-business property exclusion.
Schedule D – Business Information should be completed by direct input.
Schedule E – Partner Information: To load the Worksheet, X the box for Check here to load Schedule E.
Complete a Schedule 165 K-1 for each partner. Information will flow to each K-1 from the corresponding federal Schedule K-1.
The K-1 worksheet allows for selecting which type of state K-1 to file (Resident or Non-resident) for each partner, or enter the state of residency to determine which one is to be completed.
Use Form 220 to determine if the corporation:
(1) Paid the correct estimated tax
(2) Is subject to the penalty for underpayment of estimated tax, and to figure the amount of the applicable penalty and interest.
The Reasons for Filing (Part A) should be completed, to calculate the correct penalty and interest. In Part B, only Line 6b or 6c needs to be directly entered. The underpayment will automatically calculate based on the current year’s tax and the dates and payments listed on Form 120, Schedule F (120S filers should enter their payment dates and amounts). Part C calculates automatically, allowing for direct input for future, unknown interest rates.
Schedule A should be completed if either or both of the applicable Reasons for Filing are indicated in Part A. Many of the amounts will calculate automatically.
Use Form 120W to figure and pay estimated tax for a corporation. Estimated tax is the amount of tax the corporation expects to owe for the taxable year. If the business entity does not owe any tax, do not mail this form with a zero balance.
Use Schedule A to figure any reduced installments due as a result of the use of the Annualized Income Installment method or the Annualized Seasonal Installment method.
Corporate taxpayers use this form to summarize their total available nonrefundable tax credits, to determine the application of the available nonrefundable tax credits, and to calculate their tax liability related to recapture of tax credits. Some amounts are automatically calculated, including amounts from Form 308.
This form is used by all business entities to compute the Arizona Credit for Increased Research Activities. Completion of Part 1 is required to determine limits, and which parts of the form are applicable. Most input is direct, other than mathematical computations and amounts dictated by the form’s instructions.
Use Form 285, General Disclosure/Representation Authorization Form, to authorize the department to release confidential information to the taxpayer’s appointee. The department may have to disclose confidential information to fully discuss tax issues with, or respond to tax questions by, the appointee. A taxpayer may also use Form 285 to grant additional powers to the appointee, up to and including a power of attorney.
Only Part 1, Taxpayer Information, calculates from the Federal input.
Use Form 120EXT, Application for Automatic Extension of Time to File Corporation, Partnership and Exempt Organization returns, only if both of the following apply:
(1) The corporation cannot file its Arizona tax return by the due date.
(2) The corporation owes tax for the current taxable year.
If the corporation does not owe tax, do not file form 120EXT if a valid federal Extension has been filed. However, the corporation must file its return by the extended due date.
Much of the form is automatically calculated, but a few fields require direct input.