Arizona Sales Tax Guide
Chapter 7: How to manage late Arizona sales tax return filing
Hopefully you don't need to worry about this chapter because you're getting your Arizona Transaction Privilege Tax filing and remittance done on time and submitted without incident. However, in the real world, mistakes happen. In this chapter, we'll talk about how to avoid costly penalties and fines if you've missed your assigned filing deadline.What do I do if I missed my Arizona Transaction Privilege Tax filing deadline?
The first thing to do is get your return filed. This is definitely one of those situations where things are "better late than never." As long as you don't submit your tax filing paperwork, or hold on to the tax dollars you've collected, you may be accruing fines and interest. It's always best to get your filing done and deal with any penalties and interest payments later.What penalties and interest payments are imposed by the Arizona Department of Revenue?
Penalties of up to 25% are assessed on TPT returns filed after the prescribed due date. Late filing penalties are computed against the total amount of tax reported on the return, not the total amount of outstanding TPT. In the event of an underpayment, taxpayers do not get any credit for tax that was paid on or before the due date.
Business that are required to file with EFT but fail do do so may be charged a penalty of 5% of the amount of collected tax not remitted by EFT.If I acquire a business, am I responsible for any outstanding Transaction Privilege Tax debts, penalties, and interest?
Yes! If you are acquiring a business, it is strongly recommended that you contact the Arizona Department of Revenue and inquire about the current state of the potential acquisition. Once you've purchased the business, you will be held responsible for any and all outstanding Arizona sales and use tax liability.