Arizona Arizona Corporation Estimated Tax Payment Booklet

Arizona Corporation Estimated Tax Payment Booklet
Arizona Form 120ES
Arizona Form

120/165ES

Corporate and Partnership Estimated Tax Payment

2024

To ensure proper application of this payment, this form must be completed in its entirety.
For the  calendar year 2024 or  fiscal year beginning M M D D 2 0 2 4 and ending M M D D 2 0 Y Y .
Name of Firm – exactly as it will appear on the return	

Employer Identification Number (EIN)

Address – number and street or PO Box	

Business Phone Number (with area code)

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Address – continued

REVENUE USE ONLY. DO NOT MARK IN THIS AREA

88

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City	

State	

ZIP Code

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A

	

Check if this is the first tax return filed under this name and EIN.

B

	

Check if name and/or address has changed.

C

	

Check if EIN has changed. Enter prior EIN:	

	 1	 Payment is for quarter number:	

81 PM

80 RCVD

 Qtr 1................  Qtr 2..............  Qtr 3..............  Qtr 4

	 2	 Payment: Round estimated payment to a whole dollar (no cents).
		 Enter the amount of payment enclosed........................................................................................	
	
	 Make check payable to Arizona Department of Revenue.
	
	 Include EIN on payment.
	
	 Mail to Arizona Department of Revenue, PO Box 29085, Phoenix, AZ 85038-9085.

$	

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Print

General Instructions
Obtain additional information or assistance by calling one of
the numbers listed below:

Pass-Through Entity (PTE) Election

Phoenix...........................................................	 (602) 255-3381
From area codes 520 and 928, toll-free..........	 (800) 352-4090

Partnerships and S Corporations making the PTE election whose
taxable income for the previous year exceeds $150,000 are required
to make Arizona estimated tax payments.

Obtain tax rulings, tax procedures, tax forms and instructions,
and other tax information by accessing the department’s
website at www.azdor.gov.

S Corporations subject to tax at the federal level and making
the PTE election for the same taxable year must:

Who is Required to Make Estimated Tax Payments
C corporations, S Corporations subject to tax at the federal
level and exempt organizations with unrelated business taxable
income that anticipate an Arizona tax liability for the year of at
least $1,000 are required to make Arizona estimated payments.
	 •	 A unitary group of corporations filing a combined return on
Form 120 must make Arizona estimated tax payments on
a combined basis. Therefore, a unitary group, as a single
taxpayer, must make estimated tax payments if its Arizona
tax liability for the taxable year is at least $1,000.
	•	 An Arizona affiliated group filing an Arizona consolidated
return pursuant to A.R.S. § 43‑947 on Form 120 must make
Arizona estimated tax payments on a consolidated basis.
Therefore, an Arizona affiliated group, as a single taxpayer,
must make estimated tax payments if its Arizona tax liability
for the taxable year is at least $1,000.

ADOR 10339 (23)

	 •	 Make Arizona estimated tax payments if their total taxable
income for the previous year exceeds $150,000.
	 •	 Total their separately calculated estimated payments for the
corporate tax liability and the PTE tax liability to compute
their total required estimated payments.
	 •	 Make the required estimated payments on or before the 15th
day of April, June, and September of the taxable year, and
January 15th of the following year.
Composite Returns
Partnerships and S corporations must use Form
140ES to make voluntary estimated tax payments on
a composite basis on behalf of nonresident individual
shareholders or nonresident individual partners participating
in the filing of a composite return on Arizona Form 140NR
Refer to the department’s ruling, ITR 16-2, Composite Individual
Income Tax Returns, for additional information regarding
composite returns. For additional information, see Form 140NR
instructions for completing a composite return.

Arizona Form 120/165ES
Who Should Use Arizona Form 120/165ES

Recomputing Required Installments of Estimated
Tax

Taxpayers for whom the Director has granted a waiver from the
electronic payment requirement.

If the taxpayer, after paying one or more required installments
of Arizona estimated tax, finds that its tax liability for the taxable
year will be more or less than originally estimated, the taxpayer
should recompute its required installments. If earlier installments
were underpaid, the taxpayer may be subject to a penalty for
underpayment of estimated tax.

Taxpayers whose anticipated tax liability for the year is less
than $500 that wish to make Arizona estimated payments
may complete this form and mail the form and payment to the
address above.

When to Make Estimated Tax Payments

If a new estimate is made, the required installments payable
on or after the date of the new estimate should be adjusted. An
immediate “catch-up” payment should be made to reduce the
amount of any penalty resulting from the underpayment of any
earlier installments, whether caused by a change in estimate,
failure to make a payment, or a mistake.

Calendar year and fiscal year basis corporate taxpayers
are required to make their Arizona corporate estimated tax
payments by the 15th day of the 4th, 6th, 9th, and 12th months
of the taxable year. If the payment due date falls on a weekend
or legal holiday, the payment is considered timely if made on the
next business day.

Estimated Tax Payments by Electronic Funds
Transfer (EFT)

Partnerships and S Corporations making the PTE election are
required to make their estimated payments by the 15th day
of the 4th, 6th, and 9th months of the taxable year. The final
payment is due by the 15th day of the 1st month following the
close of the taxable year. If the payment due date falls on a
weekend or legal holiday, the payment is considered timely if
made on the next business day.

Refer to Arizona Revised Statutes § 42‑1129 and the related
Arizona Administrative Code R15‑10-301 through R15‑10‑307
for detailed information regarding EFT.
Taxpayers anticipating a tax liability for the current year of at
least $1,000 must make Arizona estimated tax payments by
EFT.

S Corporations having a tax liability at the federal level and that
are making the Arizona PTE election must make their estimated
payments by the 15th day of the 4th, 6th, and 9th months of the
taxable year. The final estimated payment is due by the 15th
day of the 1st month following the close of the taxable year. If
the payment due date falls on a weekend or legal holiday, the
payment is considered timely if made on the next business day.

Taxpayers that anticipate a tax liability for the current year of
more than $500 but less than $1,000 are not required to make
Arizona estimated tax payments. If the taxpayer elects to make
Arizona estimated tax payments, it is required to make those
payments by EFT.
NOTE: Taxpayers required to make Arizona estimated tax
payments via EFT that fail to do so will be subject to a
penalty of 5% of the amount of the payment not made by
EFT. See A.R.S. § 42‑1125(O).

Computation of Required Installments of Estimated
Tax on Arizona Form 120/PTE-W
Taxpayers should use Form 120/PTE-W, Estimated Tax
Worksheet for Corporations, to compute the amount of the
required installments of estimated tax.

Taxpayers required to make Arizona estimated tax payments
via EFT must complete the department’s EFT authorization
agreement at least 30 days prior to initiation of the first applicable
transaction.

Underpayment of Required Installments of
Estimated Tax
If the taxpayer is required to make Arizona corporate estimated
tax payments, a penalty will be imposed on any required
installment that is late or underpaid. See A.R.S. § 42‑1125(Q).

Taxpayers who anticipate their Arizona income tax liability for
the 2024 taxable year to be less than $500 may elect voluntary
participation in the EFT program. Voluntary participants in the
program must complete the department’s EFT authorization
agreement at least 30 days prior to the first applicable
transaction.
DO NOT submit Form 120/165ES to the department if the
taxpayer makes its Arizona estimated tax payments by EFT.

ADOR 10339 (23)

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Arizona Form 120/165ES
Estimated Tax Payments via the Internet

Completing Arizona Form 120/165ES

Taxpayers wishing to make EFT payments via the Internet are no
longer required to register with the department before their EFT
payments may be accepted. Visit AZTaxes.gov, go to “Make a
Corporation/S-Corporation/Partnership Payment” and follow the
prompts to choose a payment type and make a payment.

Complete Form 120/165ES in its entirety to ensure the proper
application of the estimated tax payment.

DO NOT submit Form 120/165ES to the department if the
taxpayer makes its Arizona estimated tax payments over the
Internet.

	 •	 Taxpayer name, address and employer identification number
(EIN) as it will appear on the tax return. If the taxpayer has a
foreign address, enter the information in the following order:
city, province or state, and country. Follow the country’s
practice for entering the postal code. Do not abbreviate the
country’s name.

Enter the following information on Form 120/165ES:
	 •	 The period covered by the taxable year;

Electronic payment from checking or savings account
Arizona estimated tax payments can be made electronically from
a checking or savings account. Visit www.AZTaxes.gov, click
“Make a Corporation/S-Corporation/Partnership Payment”, follow
the prompts and choose the e-check option. There is no fee to
use this method. This payment method will debit the amount from
the specified checking or savings account on the date specified.
When an electronic payment is made from a checking or
savings account, a confirmation number will be generated.
Please keep this confirmation number as proof of payment.

	 •	Check the box on line 1 indicating the quarter for which the
payment is to be applied;
	 •	Enter the amount of the estimated tax payment (in whole
dollars) on line 2.
Check the appropriate box:
	 •	If the taxpayer will file an initial return under the name and
EIN listed, check box “A”.

Credit card payment

	 •	If the taxpayer’s name or address has changed, check box
“B”.

Arizona estimated tax payments can be made by American
Express, Discover, MasterCard or Visa credit cards. Visit
www.AZTaxes.gov, click “Make a Corporation/S-Corporation/
Partnership Payment”, follow the prompts and choose the credit
card option. This will take you to the web site of the credit card
payment service provider. The service provider will charge a
convenience fee based on the amount of the tax payment. The
service provider will disclose the amount of the convenience fee
during the transaction and the option to continue or cancel the
transaction will be presented. If you accept the convenience
fee and complete the credit card transaction, a confirmation
number will be generated. Please keep this confirmation
number as proof of payment.

ADOR 10339 (23)

	 •	If the taxpayer’s EIN has changed, check box “C”. Indicate
the previous EIN in the space provided.

Rounding Dollar Amounts
Taxpayers must round amounts to the nearest whole dollar. If 50
cents or more, round up to the next dollar. If less than 50 cents,
round down.

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