43-581

43-581. Payment of estimated tax; penalty;
forms

A. An individual who is subject to the tax imposed by this title and whose Arizona
gross income, as defined by section 43-1001, or as described by section 43-1091 in the
case of nonresidents, for the taxable year exceeds seventy-five thousand dollars or one
hundred fifty thousand dollars if a joint return is filed and whose Arizona gross income
was greater than seventy-five thousand dollars in the preceding taxable year or one
hundred fifty thousand dollars in the preceding taxable year if a joint return is filed,
shall make payments of estimated tax during the individual's tax year. The amount of the
payments of estimated tax shall be an amount which reasonably reflects a taxpayer's
Arizona income tax liability which will be unpaid at the end of the taxpayer's tax
year. This amount shall be paid in four installments on or before the due dates
established by the internal revenue code and shall total, when combined with the
taxpayer's withholding tax, at least ninety per cent of the tax due for the current
taxable year or one hundred per cent of the tax due for the preceding taxable year.

B. Any other individual who is subject to the tax imposed by this title may make
payments of estimated tax during such individual's tax year. The amount of any payment of
estimated tax shall be either:

1. If payments of estimated tax are made pursuant to the internal revenue code,
ten, fifteen or twenty per cent of the amount paid to the internal revenue service as
estimated tax computed pursuant to the internal revenue code and the income tax act of
1954, as amended, to be paid on or before the due dates established by the internal
revenue code.

2. If no federal estimated tax payments are required to be made, an amount which
reasonably reflects a taxpayer's Arizona income tax liability which will be unpaid at the
end of such taxpayer's tax year.

C. The department shall prescribe rules for the payments of estimated tax which
shall provide for estimated payments in a manner similar to the manner prescribed in the
internal revenue code.

D. If the taxpayer does not pay the estimated tax required by subsection A of this
section on or before the prescribed dates, there is assessed and the department shall
collect a penalty upon the unpaid amount as prescribed by section 42-1125, subsection
Q. No penalties or interest shall be assessed or collected if either of the following
applies:

1. The estimated tax payments made pursuant to this section are allowable
exceptions under section 6654 of the internal revenue code.

2. The taxpayer's Arizona income tax liability due on the taxpayer's return is less
than one thousand dollars. For the purposes of this paragraph, "Arizona income tax
liability due on the taxpayer's return" means the amount of tax due on the return minus
the amount of Arizona income tax withheld and tax credits claimed by the taxpayer.

E. The department shall make available suitable forms and instructions to taxpayers
who make estimated tax payments pursuant to this article.