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Arizona Underpayment of Estimated Tax By Corporations
Extracted from PDF file 2023-arizona-form-220.pdf, last modified October 2009Underpayment of Estimated Tax By Corporations
Arizona Form 220/PTE Underpayment of Estimated Tax by Corporations & Pass-Through Entities Include with the corporation’s return. Partnerships and S Corporations that made the Pass-Through Entity (PTE) election, check here: 2023 See instructions. For the calendar year 2023 or fiscal year beginning M M D D 2 0 2 3 and ending M M D D 2 0 Y Y . Name as shown on Form 99T, 120, 120A, 120S, 165 (for partnerships making the PTE election) Employer Identification Number (EIN) In most cases, the taxpayer DOES NOT HAVE TO FILE Form 220/PTE. (See Part A below for exceptions.) The department will compute any penalty due and bill the taxpayer. (If the taxpayer does not have to file Form 220/PTE, the form may still be used to compute the penalty. Enter the amount of the penalty on the estimated tax underpayment penalty line of the taxpayer’s return. Do not check the box on that line of the return or include Form 220/PTE with the return.) Part A Reasons for Filing Form 220/PTE Check the boxes below that apply to the taxpayer. If any box is checked, the taxpayer must file Form 220/PTE with the taxpayer’s tax return, even though no penalty is due. See page 2 of the instructions. The taxpayer is using the annualized income installment method. (Available to partnerships or S Corporations that made the PTE election.) 2 The taxpayer is using the adjusted seasonal installment method. (Not available to partnerships or S Corporations that made the PTE election.) 3 Forms 120 and 120A only: The taxpayer is a “large corporation” computing its first required installment based on the prior taxable year’s tax liability. 4 Form 120S, S Corporations subject to tax at the federal level: The taxpayer is computing its required annual payment based on an amount equal to the sum of: 1 (a) ninety percent of the portion of the current taxable year’s liability attributable to built-in gains income or certain capital gains income; plus Part B (b) one hundred percent of the portion of the prior taxable year’s tax liability attributable to excess net passive income. Calculation of Underpayment 5 Enter the 2023 Arizona tax liability from Form 99T, line 11 less line 12; or Form 120, line 21 less line 22; or Form 120A, line 13 less line 14; or Form 120S, line 19 less line 20, or Form 165, line 23. Taxpayers with a claim of right tax calculation see instructions............................ 5 00 6 REQUIRED ANNUAL PAYMENT: 6a 00 a Enter 90% of line 5.......................................................................................................................... b Forms 99T, 120, 120A, enter the tax as shown on the 2022 return: See instructions................................ c S Corporations subject to tax at the federal level: See instructions...................................................... d Partnerships and S Corporations that made the PTE election: See instructions................................. e Forms 99T, 120, 120A: Enter the smaller of line 6a or line 6b. Partnerships and S Corporations that made the PTE election, See instructions. 6b 00 6c 00 6d 00 S Corporations subject to tax at the federal level that did not make the PTE election: Enter the smaller of line 6a or line 6c................ 6e 00 7 Installment due dates: In columns (a) through (d), enter the 15th day of the 4th, 6th, 9th, and 12th months of the taxable year. PTE’s see instructions................................... 7 (a) (b) (c) (d) MM D D Y Y MM D D Y Y MM D D Y Y MM D D Y Y 8 Required installments: If the box on line 1 and/or line 2 above is checked, enter the amounts from Schedule A, Part 3, line 48. If the box on line 3 above is checked (but not the box on line 1 or line 2), see the instructions for line 8 to determine the amount to enter. If the box on line 4 above is checked, or if none of these boxes are checked, enter 25% of line 6e in each column. ............................................................................... 8 9 Enter the estimated tax paid or credited for each period (see the instructions). For column (a) only: Skip lines 10 through 12. Enter the amount from line 9 on line 13.................................. 9 Complete lines 10 through 16 of each column before completing the next column. 10 For columns (b) through (d) only: Enter the amount, if any, from line 16 of the preceding column............................... 10 11 For columns (b) through (d) only: Add lines 9 and 10. Enter the total....................................................................... 11 12 For columns (b) through (d) only: Add the amounts on lines 14 and 15 of the preceding column. Enter the total......... 12 13 For columns (b) through (d) only: Subtract line 12 from line 11. Enter the difference. If zero or less, enter “0”............ 13 14 For columns (b) and (c) only: If the amount on line 13 is zero, subtract line 11 from line 12. Enter the difference. Otherwise, enter “0”.............................................................. 14 15 Underpayment: If line 13 is less than or equal to line 8, subtract line 13 from line 8. Enter the difference. Then, go to line 10 of the next column (see instructions page 4). Otherwise, go to line 16......................................................... 15 16 Overpayment: If line 8 is less than line 13, subtract line 8 from line 13. Enter the difference. Then, go to line 10 of the next column.......................................................................... 16 ADOR 10342 (23) Name (as shown on page 1) Part C EIN Penalty Calculation (a) (b) (c) (d) 17 Forms 120 and 120A: Enter the date of payment or the 15th day of the 4th month after the close of the taxable year, whichever is earlier. Forms 120S: Use 3rd month instead of 4th month. PTE’s: Use 3rd month instead of 4th month. Form 99T: Use 5th month instead of 4th month........................... 17 MM D D Y Y MM D D Y Y MM D D Y Y MM D D Y Y 18 Number of days from due date of installment on line 7 to the date shown on line 17......................................................... 18 Days: Days: Days: Days: 19 Number of days on line 18 after 4/15/2023 and before 7/1/2023..... 19 Days: Days: Days: Days: Days: Days: Days: Days: Days: Days: Days: Days: Days: Days: Days: Days: Days: Days: Days: Days: Days: Days: Days: Days: Days: 20 Underpayment on line 15 × Number of days on line 19 365 7% ............ 21 Number of days on line 18 after 6/30/2023 and before 10/1/2023... 22 Underpayment on line 15 × Number of days on line 21 365 7% ............ 23 Number of days on line 18 after 9/30/2023 and before 1/1/2024..... 24 Underpayment on line 15 × Number of days on line 23 365 8*% ........... 25 Number of days on line 18 after 12/31/2023 and before 4/1/2024... 26 Underpayment on line 15 + compounding, if applicable × Number of days on line 25 366 × *% 27 Number of days on line 18 after 3/31/2024 and before 7/1/2024..... 28 Underpayment on line 15 + compounding, if applicable × Number of days on line 27 366 ×*% 29 Number of days on line 18 after 6/30/2024 and before 10/1/2024... 30 Underpayment on line 15 + compounding, if applicable × Number of days on line 29 366 ×*% 31 Number of days on line 18 after 9/30/2024 and before 1/1/2025..... 32 Underpayment on line 15 + compounding, if applicable × Number of days on line 31 366 ×*% 33 Number of days on line 18 after 12/31/2024 and before 3/15/2025. 34 Underpayment on line 15 + compounding, if applicable × Number of days on line 33 365 ×*% 35 Add lines 20, 22, 24, 26, 28, 30, 32, and 34. Enter the total.............. 20 21 Days: 22 23 Days: 24 25 Days: 26 27 Days: 28 29 Days: 30 31 Days: 32 33 Days: 34 35 36 Penalty Limitation: In columns (a) through (d), enter the smaller of Part B, line 15 × 10% OR the amount from Part C, line 35......................................................................................... 36 37 Penalty: Add columns (a) through (d) of line 36. Enter the total here and on Form 99T, line 22; or Form 120, line 29; or Form 120A, line 21; or Form 120S, line 25......................................................................................................................................... 37 00 * Percentage rate to be announced Continued on page 3 ADOR 10342 (23) AZ Form 220/PTE (2023) Page 2 of 4 Name (as shown on page 1) SCHEDULE A Part 1 EIN Annualized Income Installment Method and/or Adjusted Seasonal Installment Method Under IRC § 6655(e) Annualized Income Installment Method (Available to partnerships or S Corporations making the PTE election.) (a) 1 Annualization periods: See instructions................................... 1 2 Enter taxable income for each annualization period............... 2 3 Annualization amounts: See instructions................................. 3 First (b) Months First (c) Months First (d) Months First Months 4 Annualized taxable income: Multiply line 2 by line 3. Enter the result.................................................................................. 4 5 Multiply the amount in each column on line 4 by 4.9%. (PTE’s use 2.5% tax rate) Enter the result. ............................ 5 6 Enter tax from recapture of tax credits for each payment period. See instructions......................................................... 6 7 Subtotal tax: Add lines 5 and 6. Enter the total.......................... 7 8 For each period, enter the amount of nonrefundable tax credits. See instructions........................................................ 8 9 Arizona tax liability: Subtract line 8 from line 7. Enter the difference. If zero or less, enter “0”........................................................... 9 10 Refundable tax credits: See instructions................................. 10 11 Claim of right adjustment: See instructions............................. 11 12 Net liability: Subtract the sum of line 10 and line 11 from line 9. Enter the difference. If zero or less, enter “0”............................... 12 13 Applicable percentage......................................................... 13 14 Multiply line 12 by line 13. Enter the result............................. 14 22.5% 45% 67.5% 90% 15 Add the amounts in all preceding columns from page 4, Part 3, line 48. See instructions.............................................. 16 Annualized income installments: line 14. Enter the difference. If zero or less, enter “0”.................... Part 2 15 Subtract line 15 from 16 Adjusted Seasonal Installment Method (Not available to partnerships or S Corporations making the PTE election.) CAUTION: Use this method only if the base period percentage of any 6 consecutive months is at least 70%. See the instructions for more information. 17 Enter taxable income for the following periods: a Taxable year beginning in 2020........................................ 17a b Taxable year beginning in 2021........................................ 17b c Taxable year beginning in 2022........................................ 17c (a) (b) (c) (d) First 3 Months First 5 Months First 8 Months First 11 Months 18 Enter taxable income for each period for taxable year beginning in 2023............................................................... 18 Continued on page 4 ADOR 10342 (23) AZ Form 220/PTE (2023) Page 3 of 4 Name (as shown on page 1) EIN Part 2 (continued) 19 Enter taxable income for the following periods: a Taxable year beginning in 2020........................................ 19a b Taxable year beginning in 2021........................................ 19b c Taxable year beginning in 2022........................................ 19c (a) (b) (c) (d) First 4 Months First 6 Months First 9 Months Entire Year (a) (b) (c) (d) First Installment Second Installment Third Installment Fourth Installment 20 Divide the amount in each column on line 17a by the amount in column (d) on line 17a. Enter the result.............................. 20 21 Divide the amount in each column on line 17b by the amount in column (d) on line 17b. Enter the result.............................. 21 22 Divide the amount in each column on line 17c by the amount in column (d) on line 17c. Enter the result.............................. 22 23 Add lines 20 through 22. Enter the total................................. 23 24 Divide line 23 by three (3). Enter the result............................ 24 25 Divide line 18 by line 24. Enter the result............................... 25 26 Multiply the amount in each column on line 25 by 4.9%. PTEs use 2.5%. Enter the result. ............................................ 27 Divide the amount in each column on line 19a by the amount 26 in column (d) on line 19a. Enter the result.............................. 28 Divide the amount in each column on line 19b by the amount 27 in column (d) on line 19b. Enter the result.............................. 28 29 Divide the amount in each column on line 19c by the amount in column (d) on line 19c. Enter the result.............................. 30 Add columns (a) through (c) of lines 27 through 29. Enter the total....................................................................... 31 Divide columns (a) through (c) of line 30 by three (3). Enter the result..................................................................... 32 Multiply the amount in columns (a) through (c) of line 26 by the amount in the corresponding column of line 31. Enter the result. In column (d), enter the amount from line 26, column (d)......................................................................... 29 30 31 32 33 Enter tax from recapture of tax credits for each payment period. See instructions......................................................... 33 34 Subtotal tax: Add line 32 and line 33. Enter the total................... 34 35 For each period, enter the amount of nonrefundable tax credits. See instructions........................................................ 36 Arizona tax liability: Subtract line 35 from line 34. 35 Enter the difference. If zero or less, enter “0”............................................ 36 37 Refundable tax credits: See instructions................................. 37 38 Claim of right adjustment: See instructions............................. 38 39 Net liability: Subtract the sum of line 37 and line 38 from line 36. Enter the difference. If zero or less, enter “0”............................... 39 40 Multiply line 39 by 90%. Enter the result................................ 40 41 Add the amounts in all preceding columns from Part 3, line 48. See instructions........................................................ 41 42 Adjusted seasonal installments: Subtract line 41 from line 40. Enter the difference. If zero or less, enter “0”.......................... Part 3 Required Installments 42 43 If only one of the above parts is completed, enter the amount in each column from line 16 or line 42. (If both parts are completed, enter the lesser of the amounts in each column from line 16 or line 42.)...................................................... 43 44 Enter 25% of line 6e in each column. NOTE: “Large corporations”, see the instructions to determine the amount to enter............................................................. 44 45 Enter the amount from line 47 of this schedule for the preceding column............................................................... 45 46 Add line 44 and line 45. Enter the total.................................. 46 47 If line 46 is more than line 43, subtract line 43 from line 46. Enter the difference. Otherwise, enter “0”........................................ 47 48 Required Installments: Enter the lesser of line 43 or line 46 here and on page 1, Part B, line 8................................... ADOR 10342 (23) 48 AZ Form 220/PTE (2023) Print Page 4 of 4
Arizona Form 220
More about the Arizona Form 220 Corporate Income Tax Estimated TY 2023
We last updated the Underpayment of Estimated Tax By Corporations in February 2024, so this is the latest version of Form 220, fully updated for tax year 2023. You can download or print current or past-year PDFs of Form 220 directly from TaxFormFinder. You can print other Arizona tax forms here.
Other Arizona Corporate Income Tax Forms:
TaxFormFinder has an additional 95 Arizona income tax forms that you may need, plus all federal income tax forms.
| Form Code | Form Name |
|---|---|
| Schedule ACA | Schedule ACA - Air Carrier Apportionment |
| Form 120S | Arizona S Corporation Income Tax Return |
| Form 165 | Arizona Partnership Income Tax Return |
| Form 141AZ | Arizona Fiduciary Income Tax Return |
| 165 Schedule K-1 | Schedule K-1 Resident Partner's Share of Adjustment to Partnership Income |
View all 96 Arizona Income Tax Forms
Form Sources:
Arizona usually releases forms for the current tax year between January and April. We last updated Arizona Form 220 from the Department of Revenue in February 2024.
Form 220 is an Arizona Corporate Income Tax form. While most taxpayers have income taxes automatically withheld every pay period by their employer, taxpayers who earn money that is not subject to withholding (such as self employed income, investment returns, etc) are often required to make estimated tax payments on a quarterly basis. Failure to make correct estimated payments can result in interest or penalties.
About the Corporate Income Tax
The IRS and most states require corporations to file an income tax return, with the exact filing requirements depending on the type of company.
Sole proprietorships or disregarded entities like LLCs are filed on Schedule C (or the state equivalent) of the owner's personal income tax return, flow-through entities like S Corporations or Partnerships are generally required to file an informational return equivilent to the IRS Form 1120S or Form 1065, and full corporations must file the equivalent of federal Form 1120 (and, unlike flow-through corporations, are often subject to a corporate tax liability).
Additional forms are available for a wide variety of specific entities and transactions including fiduciaries, nonprofits, and companies involved in other specific types of business.
Historical Past-Year Versions of Arizona Form 220
We have a total of twelve past-year versions of Form 220 in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:
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