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Arizona Form A1-APR
methods, see the preceding section labeled, Electronic Filing to the department. Email the password separately to
of Withholding Tax Returns. MediaLibrarian@azdor.gov. Include “Form W-2” or “Form
NOTE: Amended Forms A1-APR cannot be submitted 1099” (or both, whichever applies) in the subject line of the
email. In the body of the email, include the same information
through AZTaxes. that is on the label of the Optical Media.
Submitting Federal Forms W-2, W-2c, W-2G and
The department will not return or copy any Optical Media
1099 to the Department submitted .
Federal Forms W-2, W-2c, W-2G and 1099 are an integral part Employers submitting the information on Optical Media
of the reconciliation process required for Arizona Form should secure the Optical Media in a hard case and include it
A1-APR. with Form A1-APR or Form A1-T.
• Submit all federal Forms W-2 and W-2c reporting For more details on submitting the federal forms using optical
Arizona wages paid and/or Arizona income tax media, see the department’s publication, Pub. 701, Annual W-2
withheld. and 1099 Reporting.
• Submit all federal Forms W-2G and/or 1099 reporting
CAUTION: The employer submits the Optical Media at its
Arizona income tax withheld. Federal Forms W-2G
own risk. If the department cannot access the information on
and 1099 NOT reporting Arizona income tax withheld
the Optical Media for any reason, the employer may need to
are not required to be submitted to the department. provide the information again.
For calendar year 2020, an employer may submit federal
Forms W-2, W-2c, W-2G, or 1099 to the department by: Penalties and Interest
• Logging into AZTaxes at https://aztaxes.gov/Home/Page A. Late Filing Penalty
to use the data input method, or to upload the supported If you file late, a late filing penalty will be assessed. This penalty
federal forms as a .txt file. is 4½% (.045) of the tax required to be shown on the return for
• Logging into AZ Web File (AZFSET) at each month or fraction of a month the return is late. This penalty
https://efile.aztaxes.gov/AZFSETPortal to upload the cannot exceed 25% (.25) of the tax found to be remaining due.
supported federal forms as a .txt file. B. Late Payment Penalty
• Submitting the federal information by paper or on a CD, If the tax is paid late, a late payment penalty will be assessed.
DVD or flash drive (Optical Media). If submitting by This penalty is ½ of 1% (.005) of the amount shown as tax for
Optical Media, see the Section below labeled, “Optical each month or fraction of a month for which the failure continues.
Media”. We charge this penalty from the original due date of the return
NOTE: The department does not support the electronic filing until the date you pay the tax. This penalty cannot exceed a total
of all federal withholding forms (e.g. W-2 series, 1099 series). of 10% (.10).
See Pub 701 for a list of the required federal withholding NOTE – Amended Return Filers: If you voluntarily file an
forms that are currently supported by the department for amended return and pay the additional tax due when you file your
electronic filing. amended return, the department will not assess the late payment
Any unsupported federal forms reporting Arizona wages or penalty. Exceptions are:
Arizona income tax withheld must be filed as a paper copy or • The taxpayer is under audit by the department.
as Optical Media using Form A1-T. • The amended return was filed on demand or requested by the
Employers filing Form A1-R electronically, may submit the department.
required federal forms:
• Electronically through AZTaxes or AZFSET, or, NOTE: If the penalties in both A and B apply, the maximum
• By submitting Form A1-T with the required federal forms combined penalty cannot be more than 25%.
(supported and unsupported) attached as paper copies or C. Additional Failure to Pay Penalty
Optical Media. If submitting Form A1-T, do not include An additional penalty may be assessed if the amount of tax
a paper copy of Form A1-APR. If submitting by Optical required to be withheld is not paid by the date set for its payment.
Media, see the Section below labeled, “Optical Media” This penalty is 25% (.25) of the amount of tax required to be
for instructions. withheld and paid to the department.
Employers filing Form A1-R by paper must, submit the D. Payroll Service Company Penalty
required federal forms as paper copies or as Optical Media A PSC must make withholding payments electronically. A PSC
attached to Form A1-APR. If submitting by Optical Media, must also file Form A1-APR electronically. A PSC is subject to a
see the Section below labeled “Optical Media” for $25 penalty for each failure to make withholding payments
instructions. electronically; and it is also subject to a $25 penalty for each
Optical media failure to file withholding returns electronically. Multiple $25
Label the CD, DVD or flash drive (Optical Media) with the penalties could apply to the same client on one return. For
employer's name, EIN, calendar year and Form W-2 or Form example, if Client A is required to make 4 payments in the 3rd
1099 (or both, whichever applies). If the Optical Media is quarter, and none of the payments are made electronically, the
password protected, note that on the label and indicate the PSC would be subject to four $25 penalties, totaling $100. If the
email address from which you will be sending the password PSC files a paper Form A1-APR for Client A, the PSC will be
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