ADOR revises thresholds for mandatory EFTs

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EFTs, ADOR, Arizona Department of Revenue, e-filing, e-payment, business, TPTTo increase e-filing and e-paying by business taxpayers, the Arizona Department of Revenue (ADOR) decreased the mandatory electronic funds transfer (EFT) threshold for businesses. A business must make electronic payments if it has an annual transaction privilege tax (TPT) liability of $20,000 (down from $1,000,000). In addition, the withholding tax liability threshold was lowered to $20,000 from $80,000. The new thresholds are effective July 1, 2017 and taxpayers who fail to comply with EFTs are subject to a 5% penalty.

The revised thresholds are part of the Department of Revenue’s drive to provide enhanced customer service so that the agency is in the position to deliver better, faster, and more cost efficient government services to Arizonans. Increasing electronic payments frees up ADOR resources to process tax returns and payments faster, further strengthens tax fraud prevention, and enhances the taxpayer experience.

If you have any questions about the revised threshold for EFTs or the revised thresholds affect your business, contact your CPA.

Lauren J. Sweeney