Instructions Fo Form Tpt-1 - Transaction Privilege, Use And Severance Tax (Page 2 of 4) in pdf

For purposes of the annual estimated tax payment, "taxpayer" is

Grand Total

defined as the business entity under which the business reports and

Enter the column totals on line 16.

pays state income taxes, regardless of the number of business

Accounting Credit

licenses or locations collecting the transaction privilege,

telecommunication services excise and county excise taxes.

The State of Arizona provides a credit for accounting and reporting

expenses to be used by businesses filing transaction privilege and

Any taxpayer making an estimated tax payment must use Form

severance tax returns with the Department of Revenue. The

TPT-ES to remit the amount of the payment. See Form TPT-ES for

accounting credit is applicable only to the state portion of taxes. The

instructions.

return must be filed timely and the taxes paid in full and timely

License Cancellation

before the credit will be allowed.

To cancel a license:

The total amount of accounting allowance credit taken by a business

Enclose the original license certificate with cancel written across the

cannot exceed $10,000 for a calendar year. The cap applies to the

form and indicate the date the business closed.

combination of businesses that are included in a given income tax

return and not to each account. The accounting credit is only

NOTE: You may continue receiving the Form TPT-1 until the

allowed if the return is filed and paid on time.

department receives and cancels the license. If this should

Calculate the credit by multiplying the net taxable amount in column

happen and there is no taxable income, file the return as zero.

3 by the accounting credit rate in column 6 (a rate of .050% is

You may wish to call the department to verify if your license

entered as .0005), and enter the result in column 7. Also, be sure to

has been canceled.

enter the total accounting credit on line 16 in column 7. Enter this

Sign and Mail the Return

total on line 17 in column 5, as well. This amount can then be

Please include the tax type, period covered and state license number

subtracted from the total tax due.

on the check or money order.

NOTE: To calculate the accounting credit (Column 7) on

Sign your return and mail it, with payment to:

State Excess Tax you must multiply the amount in Column 5

by the accounting credit rate of .01 and enter the result in

Arizona Department of Revenue

Column 7.

PO Box 29010

For taxpayers using the computer generated TPT-1, the Accounting

Phoenix AZ 85038-9010

Credit Rate appears in column 6.

Hand delivered returns:

NOTE: An accounting credit may not be taken against taxes

Office hours: 8 a.m. - 5 p.m.

collected for use tax, county excise and city taxes. (See tax

Monday - Friday (except for legal

rate table for identification of state business classes eligible

Arizona State holidays)

for the accounting credit.)

Penalty And Interest

Phoenix

Arizona Department of Revenue

There is a 5 percent per month penalty for late filing and a 10

1600 W Monroe

percent penalty for late payment. The maximum total of these

penalties is 25 percent of the tax due.

Tempe

The Arizona interest rate is the same as the federal rate and

Arizona Department of Revenue

continues to accrue until taxes are paid. For the current rate, call one

1440 E Southern

of phone numbers listed on page 1

Tucson

Late payments of estimated tax will be assessed penalty and interest.

Arizona Department of Revenue

Total Liability

402 W Congress

Total lines 16, 17, and 18 and enter on line 19.

Important Reminders

Credits

Please print or type in black ink.

If you have a credit balance to be applied, specify the amount on line

Sign the return. Every return must be signed by the taxpayer or his

20. Attach a copy of the credit notice to the return.

authorized agent as noted.

Annual Estimated Tax Payment Filing

Paid preparer’s signature. If the return has been prepared by a paid

Requirement

preparer, the return must include the paid preparer’s signature and

Taxpayers who meet either of the following conditions are required

TIN.

to make an Annual Estimated Tax Payment on June 20th each year.

This payment must be equal to either one-half of the total tax due for

the month of May or the total tax due for the first 15 days of June.

(1) Taxpayers with a total combined liability for the state

transaction privilege, telecommunication services excise and

county excise taxes in the preceding calendar year of

$100,000 or more.

(2) Taxpayers who can reasonably anticipate a total combined

liability for such taxes in the current year of $100,000 or more.

Page 2 Form No. 64-1046 Rev. 3/96

Instructions Fo Form Tpt-1 - Transaction Privilege, Use And Severance Tax Page 2

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