State & Local Tax Impacts of COVID-19 for Arizona – 2020

Thoughtware Alert Published: Dec 11, 2020 | Updated: May 02, 2021

Information current as of December 31, 2020.

COVID-19 has changed life across the globe. Many taxing jurisdictions are taking mitigating actions to create social distance and aid taxpayers. The following is a running list of actions by jurisdiction, which generally result in additional time to file and/or pay. Further, many jurisdictions have closed their offices to in-person use by taxpayers and suspended their audit and administrative functions. This alert doesn’t cover similar waivers from local-level taxing authorities. These developments continue to quickly evolve; check with your BKD Trusted Advisor or visit our COVID-19 Resource Center for current information as needed.

Information Specific to Arizona

  • Arizona moved the deadline for filing and paying state income taxes from April 15 to July 15, 2020. The extension applies to returns and payments for individuals, corporations and fiduciaries. Taxpayers filing returns or submitting payments by the new deadline will not incur late filing or late payment penalties.
    • DOR Notice, March 20, 2020.
  • Arizona extended the due date for filing for the credit for increased excise taxes and the property tax refund claim until July 15, 2020. The due date for estimated payments will remain April 15, 2020, and the due date for specifying the taxable year to which contributions to certified school organizations, public schools and qualifying charitable organizations apply remains at April 15, 2020.
    • Arizona DOR Notice No. 20-1, April 1, 2020.
  • In regard to the COVID-19 pandemic period beginning March 1, Arizona determined there’s a reasonable basis for business owners’ and operators’ inability to timely file or pay transaction privilege taxes—which also includes county excise taxes and municipal privilege taxes along with state transaction privilege sales and use tax—and it will issue information providing the steps taxpayers should follow to request penalty abatement.
    • Arizona DOR Transaction Privilege Tax Ruling TPR 20-XX, June 1, 2020.

For more information, reach out to your BKD Trusted Advisor or use the Contact Us form below.

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