Beginning in 2021, the Arizona Department of Revenue (ADOR) will require corporations to file their income tax returns electronically. Electronic filing has been available since 2019, but legislation signed into law in 2017 will make it mandatory starting with filings for the 2020 tax year. Fiduciary and withholding tax must also be filed electronically, along with annual transaction privilege tax and use tax for companies with a liability of $500 or more during the prior calendar year.
According to the ADOR, e-filing is a faster and more secure way to file, and returns are verified more quickly than paper returns. Over a dozen software vendors will be approved to submit income tax returns for companies in 2021.