The Arizona Department of Revenue (ADOR) has issued a revenue ruling that may offer some relief to taxpayers whose businesses have been impacted by the COVID-19 pandemic. The ruling states that the various measures implemented by the state to protect public health are a reasonable basis for the inability of business owners and operators to file or pay transaction privilege taxes (TPT) on time. The ruling also includes county excise taxes and municipal privilege taxes remitted to ADOR along with the state TPT.
The revenue ruling applies to late filing payment penalties assessed for TPT periods beginning February 1, 2020. For those who file quarterly, the ruling also covers the period from January 1, 2020 to March 30, 2020.
Taxpayers who want to request a COVID-19 Related Penalty Abatement should refer to the ADOR procedures, here.
Ordinarily, taxpayers who either file late, pay late, or fail to file after notice and demand are subject to substantial civil penalties.
Please contact REDW Principal James Ortiz or Thomas Herrick to discuss any questions or concerns you may have about this tax penalty abatement.
