Does Arizona require state 1099 tax filing?
Yes, Arizona requires any forms 1099 with state tax withholding to be filed with the state.
How must Forms 1099 be filed with Arizona?
Arizona only accepts electronic filings, besides for Form 1099-NEC. Please note: Arizona only accepts Forms 1099-DIV, 1099-MISC, 1099-S and 1099-R electronically at this time.
Form 1099-NEC (with state withholding) may be submitted to the state via Optical Media (specifications can be found in AZ Pub. 701) or via paper document.
Employers with a valid waiver or exemption may submit paper filings or filings via optical media.
Which forms does Arizona require?
Arizona requires that all forms 1099 that report Arizona income tax withheld to be submitted to the state. This may include:
| 1099-A | 1099-G | 1099-MISC | 1099-QA |
| 1099-B | 1099-INT | 1099-NEC | 1099-R |
| 1099-C | 1099-K | 1099-OID | 1099-S |
| 1099-CAP | 1099-LS | 1099-PATR | 1099-SA |
| 1099-DIV | 1099-LTC | 1099-Q | 1099-SB |
In addition to Form W-2, Arizona requires Form A1-R, Arizona Withholding Reconciliation Return, to be filed. This can only be filed electronically.
When paper filing, Form 1096, Annual Summary and Transmittal of US Information Returns, must also be included.
Does Arizona participate in Combined Federal/State Filing?
Yes, Arizona does participate in Combined Federal/State Filing. If you utilize CF/SF when filing your 1099s, the IRS will forward the information to the Arizona Department of Revenue and you will not have to do so yourself.
However, if state withholding is reported, then you must file these forms along with the associated Form A1-R directly with the Arizona Department of Revenue.
Form 1099-S must always be filed directly, regardless of participation in CF/SF and even if there was no state withholding.
For calendar year 2024, the following federal Forms 1099 are accepted electronically: 1099-DIV, 1099-MISC, 1099-S and 1099-R.
What are the Due Dates for Arizona 1099 Reporting?
The due date for these submissions is January 31st.
What are the 1099 penalties for Arizona?
The 1099 penalties for Arizona are as follows:
- Delinquent or late-filing*: Penalty of 4.5% of tax due per month (or partial month) late.
-
Late Payment*: Penalty of 0.5% per month (or partial month) past due.
- Late filing and late payment penalties not to exceed 25% combined.
- Interest will accrue on any late payments and penalties at the same rate as charged by the IRS. Interest cannot be waived.
- Payments not made via EFT when required: Penalty of 5% for making a payment via other methods
*Delinquent tax returns and late payments are also subject to underpayment penalties and interest. Underpayment penalty is equal to the interest that would accrue on the amount not paid for the period of underpayment, not to exceed 10% of the amount not paid.
Please see the Arizona Pub. 622 – Business Basics Guide for more information.
What is the responsible state agency?
Arizona Department of Revenue
P.O. Box 29086
Phoenix, AZ 85038-9086
(602) 255-3381
What about other states?
BoomTax, The Boom Post, and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors prior to engaging in any transaction.
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