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For AZ clients and residents: New Info – Electronic filing, S-Corps and Vehicles

New information on S-Corps and Personal Vehicles

Health Insurance premiums paid on behalf of a >2% shareholder-employee are deductible by the S-Corporation and reportable as wages on the shareholder-employees’ Form W-2, included in boxes 1, 14 and 16.

It is also required by the IRS that we include a line on your W-2 for amounts paid by your corporation for personal use of your corporate vehicle.  This amount should be included in box 14 of the W-2.

Please advise your payroll service or department of any inclusions prior to December 31, 2018.

We will be happy to help you with this if you need any assistance. Contact us here.

Arizona Department of Revenue to launch next phase of electronic TPT filing and paying

In 2019, the Arizona Department of Revenue (ADOR) will be taking another step in its ongoing drive to provide enhanced customer service through electronic filing and paying.

E-filing and paying is more secure and faster for taxpayers and critical for ADOR to deliver a more results-driven, customer-focused management system that produces enhanced services for Arizonans.  Increasing electronic payments also frees up additional ADOR resources to process tax returns and payments of all types much faster, further strengthens tax fraud prevention measures and enhances the taxpayer experience.

Most importantly for taxpayers, electronic filing and paying saves money. Taxpayers filing electronically are eligible to receive up to a $2,000 reduction of tax due thanks to the enhanced annual accounting credit for e-filing.

To file and pay online, a business must be registered to use www.AZTaxes.gov and use Automated Clearance House (ACH) Debit as a payment method to comply with electronic funds transfer (EFT) payment requirements. Filing online means faster processing and fewer errors. For more information, visit azdor.gov.

What’s happening?

Under legislation that became law in 2017, effective January 1, 2019, businesses with an annual transaction privilege tax (TPT) and use tax liability of $10,000 or more during the prior calendar year, will be required to file and pay electronically starting in February, 2019 for the January reporting period.

How does the increased accounting credit of up to $2,000 work?

Taxpayers filing transaction privilege tax electronically during a calendar year are able to claim an increased accounting credit from 1 percent to 1.2 percent. This increases the total calendar year credit limit from $10,000 to $12,000. For taxpayers who file paper TPT returns, the accounting credit remains unchanged at 1 percent and a total calendar year credit of $10,000.

Is there a penalty for not filing and paying electronically?

  • Taxpayers required to file an electronic return will be subject to a penalty of 5 percent of the tax amount due for filing a paper return.
  • Taxpayers required to pay electronically will be subject to a penalty of 5 percent of the amount of payment made by check or cash.

There is also an update to the penalty for late filing. Under recent legislation, all late filing penalties will be a minimum of $25, including for filings with zero liability.

For more information on transaction privilege tax, including TPT filing and paying requirements, go to: azdor.gov/transaction-privilege-tax-tpt.

Effective dates for future TPT e-file/e-pay for businesses that have the following liabilities in the previous calendar year:

  • $5,000 beginning January 1, 2020
  • $500 beginning January 1, 2021.

For more information on the Arizona Department of Revenue visit: www.azdor.gov

Information provided by Arizona Department of Revenue