HB 2114 — income tax; returns; filing extension.

HB2114 - 551R - IH Ver       REFERENCEHouse TITLE:Engrossed income tax;

income tax;

        State of Arizona House of Representatives Fifty-fifth Legislature First Regular Session       HBHOUSE BILL 2114   Introduced  by  RepresentativesAN Bolick:ACT   amending section 42-1107, Arizona Revised Statutes;

Toma     AN ACT   amending section 42‑1107, Arizona Revised Statutes;

Section 1.  SectionSection 1. 42-1107, Arizona Revised Statutes, is amended to read:

START_STATUTE42-1107.  ExtensionSection of42-1107, timeArizona forRevised filingStatutes, returns A.  The department, pursuant to administrative rule, may grant an automatic extension of time for filing an income tax return under title 43 if at least ninety per cent percent of the tax liability disclosed by the taxpayer's return for the reporting period is paidamended and if the request for extension is received or mailed on or before the date the return is otherwise due to beread: filed.  If at least ninety per cent percent of the tax liability disclosed by the taxpayer's return for the reporting period has not been paid at the time of filing for the extension, the taxpayer is subject to a penalty of one‑half of one per cent percent of the tax not paid for each thirty day thirty‑day period or fraction of a thirty day thirty‑day period elapsing between the date the return is otherwise due to be filed and the date the tax is paid, not to exceed a total of twenty‑five per cent percent.  If a taxpayer is subject to both of the penalties prescribed under this section and section 42‑1125, the maximum combined penalty that may be imposed on the taxpayer under both sections shall not exceed twenty‑five per cent percent of the tax found to be remaining due.  A taxpayer is not subject to the penalties prescribed under section 42‑1125, subsection D if the taxpayer is subject to the penalties prescribed under this section.  If in its judgment good cause exists, the department may grant a further extension or extensions of time for filing the return pursuant to administrative rule.  No except as provided in subsection D of this section, an extension or extensions granted under this subsection may not aggregate more than six months from after the due date provided for the filing of returns.

B.  IfSTART_STATUTE42-1107. the taxpayer has been granted an extension or extensions of time within which to file a federal income tax return for any taxable year, the taxpayer is deemed to have been granted the same extension of time for filing the Arizona income tax return if the taxpayer has paid at least ninety per cent percent of the tax liability disclosed by the taxpayer's return for the reporting period.  If at the time the taxpayer has been granted a federal extension or extensions the taxpayer is required to make the payment of pay at least ninety per cent percent under this section, the payment shall be in a manner prescribed by the department.

C.  TheExtension department, for good cause, may extend the time for making any other return required by chapter 5, articles 1, 4 and 5 of this title, and may grant such reasonable additional time in which to make the return as it deems proper, but the time for filing thereturns returnA. shall not be extended beyond the first day of the third month next succeeding the regular due date of the return.

D.  TheThe duedepartment, datepursuant to administrative rule, may grant an automatic extension of time for filing an income tax return under title 43 if at least ninety per cent percent of the tax liability disclosed by the taxpayer's return for athe taxpayerreporting filingperiod ais corporatepaid and if the request for extension is received or exemptmailed organizationon or before the date the return thatis otherwise due to be filed.  If at least ninety per cent percent of the tax liability disclosed by the taxpayer's return for the reporting period has not been grantedpaid anat extensionthe ortime extensionsof pursuantfiling for the extension, the taxpayer is subject to subsectiona Apenalty of one-half of one per cent percent of the tax not paid for each thirty day thirty-day period or Bfraction of thisa sectionthirty isday seventhirty-day monthsperiod afterelapsing between the initialdate the return is otherwise due dateto providedbe forfiled filingand returns. the Thisdate subsectionthe doestax is paid, not includeto smallexceed businessa corporationtotal returnsof filedtwenty-five underper sectioncent 43‑1126.percent.

END_STATUTEIf Sec. 2.  Retroactivitya Thistaxpayer actis appliessubject to taxableboth yearsof beginningthe frompenalties prescribed under this section and aftersection December42-1125, 31,the 2020.maximum combined penalty that may be imposed on the taxpayer under both sections shall not exceed twenty-five per cent percent of the tax found to be remaining due.

A taxpayer is not subject to the penalties prescribed under section 42-1125, subsection D if the taxpayer is subject to the penalties prescribed under this section.

If in its judgment good cause exists, the department may grant a further extension or extensions of time for filing the return pursuant to administrative rule.

No except as provided in subsection D of this section, an extension or extensions granted under this subsection may not aggregate more than six months from after the due date provided for the filing of returns.

B.

If the taxpayer has been granted an extension or extensions of time within which to file a federal income tax return for any taxable year, the taxpayer is deemed to have been granted the same extension of time for filing the Arizona income tax return if the taxpayer has paid at least ninety per cent percent of the tax liability disclosed by the taxpayer's return for the reporting period.

If at the time the taxpayer has been granted a federal extension or extensions the taxpayer is required to make the payment of pay at least ninety per cent percent under this section, the payment shall be in a manner prescribed by the department.

C.

The department, for good cause, may extend the time for making any other return required by chapter 5, articles 1, 4 and 5 of this title, and may grant such reasonable additional time in which to make the return as it deems proper, but the time for filing the return shall not be extended beyond the first day of the third month next succeeding the regular due date of the return.

D.

The due date for an income tax return for a taxpayer filing a corporate or exempt organization return that has been granted an extension or extensions pursuant to subsection A or B of this section is seven months after the initial due date provided for filing returns.  This subsection does not include small business corporation returns filed under section 43-1126.

END_STATUTE Sec. 2.

Retroactivity This act applies to taxable years beginning from and after December 31, 2020.