PDF document

- 1 -

Arizona Form
2020 Arizona Withholding Reconciliation Return A1-R
Procedure for Requesting Extension of the Filing Deadline for
For information or help, call one of these numbers:
Annual Withholding Tax Returns.
Phoenix (602) 255-3381
From area codes 520 and 928, toll-free (800) 352-4090 If you are required to pay by EFT and are making a payment
with your extension request, see the Section, Payments by
Tax forms, instructions, and other tax information
Electronic Funds Transfer, for options to make your extension
If you need tax forms, instructions, and other tax information,
payment.
go to the department’s website atwww.azdor.gov.
If you are not required to pay by EFT and are making a payment
Withholding Tax Procedures and Rulings
with your extension request, you must make that payment with
These instructions may refer to the department’s withholding
a completed Form A1-WP. Show that the payment is for the
tax procedures and rulings for more information. To view or
4th Quarter of the year for which you requested the extension.
print these, go to our website and click on Reports & Legal
Research then click on Legal Research and select a Document Electronic Filing of Withholding Tax Returns:
Type and Category from the drop down menus. Withholding returns shall be filed electronically for taxable
Publications years beginning from and after December 31, 2019, or when the
To view or print the department’s publications, go to our department establishes an electronic filing program.
website and click on Reports & Legal Research. Then click on For 2020, the department currently has three methods by which
Publications. employers may file Form A1-R electronically:
1. An employer may register at
General Instructions https://efile.aztaxes.gov/AZFSETPortal [AZ Web File
(ASFSET)] to bulk-file its return by uploading a .csv file.
Why is Form A1-R filed? 2. An employer may register at
Form A1-R is an annual return filed to summarize the total https://aztaxes.gov/Home/Page (AZTaxes) and use the
compensation paid and tax withheld for each employee during data input method to submit its return.
the calendar year. 3. Registered transmitters of AZ Web File (AZFSET) can
Who Must File Form A1-R bulk-file using the transmission method.
Employers that file Form A1-QRT must file Form A1-R to Any employer who is required to file its withholding return
reconcile the amount of tax withheld during the year to the electronically may apply to the director for an annual waiver
amount of tax liability reported during the year. In addition, from the electronic filing requirement pursuant to Arizona
Form A1-R is used to transmit federal Forms W-2 and W-2c Revised Statutes (A.R.S) § 43-325(F). The waiver may be
reporting Arizona wages paid and/or Arizona income tax granted, which may be renewed for one subsequent year, if any
withheld, and federal Forms W-2G and 1099 reporting Arizona of the following apply:
income tax withheld. • The employer has no computer.
NOTE: Employers that file Form A1-APR, Arizona Annual • The employer has no internet access.
•
Payment Withholding Tax Return, should not file Form A1-R. Any other circumstance considered to be worthy by the
director.
IMPORTANT: Arizona Form A1-R is an information return.
Do not submit any withholding tax amount(s) owed or try to A waiver is not required if the withholding return cannot be
claim a refund with this return. To pay additional withholding electronically filed for reasons beyond the employer’s control,
tax amounts, or to claim a refund, file amended quarterly including situations in which the employer was instructed by
the Internal Revenue Service (IRS), or the Arizona Department
withholding tax Forms A1-QRT. of Revenue (department) to file by paper.
When is Form A1-R Due? Please contact the department at azwebfilesupport@azdor.gov
Period in Which Form A1-R Due By if you need assistance in electronically submitting your Arizona
Wages Paid withholding return.
January - December January 31 of the following year Filing Original Returns
If the due date falls on a Saturday, Sunday, or a legal
File this form only on a calendar year basis. File one Form A1-
holiday, the return will be considered timely if filed on the
R per Employer Identification Number (EIN) per calendar year,
next business day. (See General Tax Ruling [GTR] 16-1,
regardless of the source of the withholding. Submit Form A1-
Timely Filing of Income or Withholding Tax Returns
R electronically unless the employer has been granted a waiver,
Through the United States Mail or,GTR 16-2, Timely
or has been instructed to file a paper return by the IRS or by the
Filing of Income or Withholding Tax Return – Holidays
department.
and Weekends. )
A Payroll Service Company must submit Form A1-R
Extension of Time to File Form A1-R electronically.
You may apply for a 30-day extension of time to file Form A1-
R. When asking for an extension, you must show good cause.
You must file the extension request as soon as you know that
you need an extension. The extension request must be mailed
on or before January 31. For details on how to request an
extension, see Withholding Tax Procedure (WTP) 11-1,

- 2 -

Enlarge image

Arizona Form A1-R
NOTE: Arizona law states that all amounts withheld are to be and 1099 NOT reporting Arizona income tax withheld
treated as if the withholding was from wages paid to an employee. are not required to be submitted to the department.
If you file federal Form 941 or Form 944 to report federal For calendar year 2020, an employer may submit federal Forms
withholding on Arizona wages and federal Form 945 to report W-2, W-2c, W-2G, or 1099 to the department by:
federal withholding on Arizona non-wage payments for the same • Logging into AZTaxes at https://aztaxes.gov/Home/Page
EIN, file one A1-R to report and reconcile your total Arizona to use the data input method, or to upload the supported
withholding for the year, regardless of the source of that federal forms as a .txt file.
withholding. Do not file more than one original A1-R for the same • Logging into AZ Web File (AZFSET) at
EIN for the calendar year. https://efile.aztaxes.gov/AZFSETPortal to upload the

supported federal forms as a .txt file.
What To Do If You Close Your Business • Submitting the federal information by paper or on a CD,
When your business is sold, discontinued, converted to a new DVD or flash drive (Optical Media). If submitting by
form, or all your employees are dismissed, you must notify the Optical Media, see the Section below labeled, “Optical
department by filing a final return and request the department Media”.
close your withholding account. Until you request the
NOTE: The department does not support the electronic filing
department close your withholding account, your withholding
of all federal withholding forms (e.g. W-2 series, 1099 series).
return(s) will continue to be due. See Pub 701 for a list of the required federal withholding forms
To file your final A1-R: that are currently supported by the department for electronic
• Check Box C if you are submitting this form during filing.
calendar year 2021 due to an account cancellation during Any unsupported federal forms reporting Arizona wages or
2021. Arizona income tax withheld must be filed as a paper copy or
• Check Box D if you are cancelling your withholding as Optical Media using Form A1-T.
account due to a merger or acquisition and the surviving
Employers filing Form A1-R electronically, may submit the
employer is filing Forms W-2.
required federal forms:
• Complete the remainder of the return to reconcile your
Arizona income tax withholding liability for the year in • Electronically through AZTaxes or AZFSET, or,
which your account was closed. • By submitting Form A1-T with the required federal forms
Include state copies of Forms W-2, W-2c, W-2G, and 1099 with attached as paper copies or optical media. If submitting
the final return. Form A1-T, do not include a paper copy of Form A1-R. If
NOTE: To close your account, you must file a final Form A1- submitting by Optical Media, see the Section below
R and file a final Form A1-QRT for the calendar quarter during labeled, “Optical Media” for instructions.
which final wages were paid. Refer to the instructions for Form Employers filing Form A1-R by paper must, submit the
A1-QRT for assistance in filing your final Form A1-QRT. required federal forms as paper copies or as Optical Media
attached to Form A1-R. If submitting by Optical Media, see the
Filing Amended Returns Section below labeled “Optical Media” for instructions.
If this is an amended Form A1-R, check the “Amended Return” Optical Media
box. Enter the amended amounts in all areas of the form.
Label the CD, DVD or flash drive (Optical Media) with the
Complete Part 4 to explain why an amended return is being
employer's name, EIN, paid preparer contact information,
filed. Include amended federal Forms W-2, W-2c, W-2G and
calendar year and Form W-2 or Form 1099 (or both, whichever
1099. applies). If the Optical Media is password protected, note that
Unless the employer was granted a waiver to file its original on the label and indicate the email address from which you will
return by paper, or was directed by the IRS or the department be sending the password to the department. Email the password
to file the original Form A1-R as a paper return, amended separately to MediaLibrarian@azdor.gov. Include “Form W-2”
Forms A1-R shall be submitted electronically using either or “Form 1099” (or both, whichever applies) in the subject line
AZFSET or a registered transmitter. For additional of the email. In the body of the email, include the same
information on either of these methods, see the preceding information that is on the label of the Optical Media.
section labeled,Electronic Filing of Withholding Tax Returns. The department will not return or copy any Optical Media
NOTE: Amended Forms A1-R cannot be submitted through submitted.
AZTaxes. Employers submitting the information on Optical Media should
Submitting Federal Forms W-2, W-2c, W-2G and secure the Optical Media in a hard case and include it with
Form A1-R or Form A1-T.
1099 to the Department
Federal Forms W-2 and W-2c, W-2G and 1099 are an integral part For more details on submitting the required federal forms using
of the reconciliation process for Arizona Form A1-R. Optical Media, see the department’s publication, Pub. 701,
• Submit all federal Forms W-2 and W-2c reporting Annual W-2 and 1099 Reporting.
Arizona wages paid and/or Arizona income tax CAUTION: The employer submits the Optical Media at its own
withheld. risk. If the department cannot access the information on the
• Submit all federal Forms W-2G and/or 1099 reporting Optical Media for any reason, the employer may need to
Arizona income tax withheld. Federal Forms W-2G provide the information again.
2

- 3 -

Enlarge image

                                                                                                           Arizona Form A1-R 
 Penalties                                                           Line  2   
This form is an information return. The penalty for failing to       Enter the total Arizona gross wages paid to employees for 2020.  
file, filing late (including extensions) or filing an incomplete     Total Arizona gross wages means the amounts considered 
return is $100 for each month or fraction of a month that the        wages    for federal income tax withholding purposes.   
failure continues, up to a maximum of $500.                           Line 3  
                                                                     Enter the number of employees who were paid Arizona wages 
                Specific Instructions                                in 2020.  Include employees who had Arizona withholding 
Part 1 – Taxpayer Information                                        deducted from their compensation during the year and 
All returns, statements, or other documents filed with the           employees whose compensation was for services performed in 
department must have the taxpayer’s EIN indicated on them.           Arizona but the employees filed an election to not have any 
Employers who fail to include their EIN may be subject to a          Arizona  withholding deducted from their compensation.   
 penalty.                                                            Do not include annuity recipients, independent contractors, 
Employer    Information                                              pension recipients, or those employees whose Arizona 
Enter the employer’s name, EIN, address, and telephone               compensation is excluded from withholding by Arizona law.   
number  in the spaces provided.                                       Line 4   
If the employer has a foreign address, enter the information in      Enter the total number of federal Forms W-2, W-2c, W-2G, or 
the following order: city, province or state, and country. Follow    1099 submitted to the department. 
the country’s practice for entering the postal code.      Do not     Line  5   
 abbreviate the country’s name.                                      Form A1-R is an information return. An information return that 
Check Boxes:                                                         is incomplete or filed after its due date (including extensions) is 
A.  Amended Return                                                   subject to a penalty of $100 for each month or fraction of a 
    Check Box A, “Amended Return” if this is an amended              month, that the failure continues, up to a maximum penalty of 
    Form A1-R.  Explain why you are amending the return in           $500. If the employer files this return after its due date 
    Part 4.  Include the corrected copies of Forms W-2, W-2c,        (including extensions), enter the amount of the penalty on this 
    W-2G and 1099 (with Arizona withholding) with your                line.   
    amended Form A1-R. 
                                                                     Part 3 – Annual Summary of Amounts Reported 
B. Address Change 
    Check Box B, “Address Change” if you had an address              on 2020 Arizona Forms A1-QRT 
    change since you last filed Form A1-R. Enter your current        Lines    6 through 10   
    address  in Part 1.                                              On lines 6 through 9, enter the amount of tax reported on Form 
C. Early-Filed Final Return                                          A1-QRT for each quarter.  Add the amounts on lines 6 through 
    Check Box C if you cancelled your withholding account            9 and enter the total on line 10.  The amount entered on line 10 
    during 2021 and are filing your final reconciliation during       should equal the amount reported on line 1. 
    2021.                                                            If you are filing Form A1-R as a surviving employer (as a result 
D. Cancellation Due to Merger or Acquisition                         of a merger or acquisition), and the amount on line 1 is more 
    Check Box D if you cancelled your withholding account            than the amount on line 10 because amounts were remitted by 
    due to a merger or acquisition and the surviving employer        the prior employer, check Box E near the top of Form A1-R.  
    is filing Forms W-2.                                             Also enter the name and EIN of the predecessor employer in the 
E. Surviving Employer is Filing Form A1-R                            spaces   provided. 
    Check Box E if Form A1-R is being filed by the surviving 
    employer and the amount on line 1 is less than the amount        Part 4 – Explain Why an Amended Form A1-R is 
    on line 10   because the difference was remitted by the           Being Filed 
    predecessor employer.  Also,  enter the predecessor              If this is an amended return, explain why you are amending  
    employer name and EIN in the spaces provided.                    Form  A1-R. 
NOTE: If you cancelled your withholding account during               Underpayment         of Tax  
2021, you may use the 2020 Form A1-R to file your final              If you find that you have underpaid your tax for 2020, you must 
reconciliation for 2021 before its normal due date of January        file an amended Form A1-QRT for each quarter for which there 
31, 2022.  If you are filing an early return for 2021, check box C    was an underpayment. 
to indicate that this is an early-filed return for 2021.             You must send in a separate payment with each amended Form 
Part  2 – Federal Transmittal Information                            A1-QRT.  The department will calculate the amount of interest 
                                                                     and any applicable penalties and send a billing notice after the 
Line 1                                                                amended return is processed. 
Enter the total Arizona income tax withheld from wages paid to 
employees for 2020.  This amount must be the same as shown            Overpayment of Tax  
on federal Forms W-2, W-2c, W-2G, or 1099.                           If you find that you have overpaid your tax for 2020, you must 
                                                                     file an amended Form A1-QRT for each quarter for which there 
                                                                     was  an overpayment. 

                                                                   3

- 4 -

Enlarge image

Arizona Form A1-R
An overpayment will first be applied to any unpaid tax. This
may include tax due for another tax type. If the overpayment is Paid Preparer Use Only
more than any unpaid tax, or if the employer does not have an Paid preparers: Sign and date the return. Complete the firm name
unpaid balance of tax, a refund will be issued. A refund will and address lines (the paid preparer’s name and address, if self-
not be issued once the overpayment is applied to a tax liability. employed).
Where to Submit Form A1-R Paid preparers must provide a Tax Identification Number (TIN).
Submit Form A1-R and federal Forms W-2, W-2c, W-2G and Paid preparers that fail to include their TIN may be subject to a
1099 electronically unless the employer has been granted a waiver penalty.
pursuant to A.R.S. § 43-325(F), or has been instructed by the IRS The TIN for a paid preparer may be one of the following:
or by the department to file a paper return. • The preparer’s PTIN, or,
• The EIN for the business, or,
Who Must Sign Form A1-R • The individual preparer’s social security number (SSN),
The following persons are authorized to sign the return for each if self-employed.
type of business entity:
• Sole proprietorship - The individual who owns the
business.
• Corporation (including a limited liability company
(LLC) treated as a corporation) - The president, vice
president, or other principal officer duly authorized to sign.
• Partnership (including an LLC treated as a partner-
ship) or unincorporated organization - A responsible and
duly authorized member, partner, or officer having
knowledge of its affairs.
• Single member LLC treated as a disregarded entity for
federal income tax purposes - The owner of the LLC or a
principal officer duly authorized to sign.
• Trust or estate -The fiduciary.
Form A1-R may be signed by a duly authorized agent of the
taxpayer if a valid power of attorney has been filed.

PDF file checksum: 2923744980

(Plugin #1/8.13/12.0)