On September 6, 2022 the Arizona Department of Revenue began allowing taxpayers to make their PTE estimated tax payments via the AZTaxes.gov website. The Department of Revenue also sent out an email announcement and posted the same to their website announcing the development.[1]
The announcement provides the following basic information on making the third quarter payment:
Partnership and S corporation taxpayers can now make their required third quarter pass-through entity tax payment electronically using AZTaxes.gov(link is external), under Quick Payment Links – “Make a Corporation/S-Corporation/ Partnership Payment.”[2]
The announcement clarified that only a 25% payment is needed for the third quarter, so that taxpayers don’t need to “catch-up” and now make the first two payments along with the third quarter payment:
Estimated payments are due September 15, 2022 and taxpayers are required to pay at least 25% of the estimated tax for the 2022 tax year.[3]
The announcement reminds taxpayers of the basic estimated tax payment rules as interpreted by the Department of Revenue for the passthrough tax:
For taxable years beginning from and after December 31, 2021, an entity that is treated as a partnership or S corporation for federal income tax purposes that elects to pay the tax under A.R.S. § 43-1014 and whose taxable income for the taxable year exceeds $150,000 in the preceding taxable year must make estimated tax payments during the taxable year in a manner consistent with how estimated individual income tax payments are made.
Individuals subject to estimated tax payments in Arizona must make quarterly payments by April 15, June 15, and September 15 of the current year and January 15 of the following year. However, the first and second quarter Arizona estimated tax payments were not required in 2022 for partnerships or S corporations making the pass-through entity election under A.R.S. § 43-1014.[4]
The Department, apparently recognizing how close to the September 15 deadline they finally made this option available, does provide for relief for taxpayers who are unable to get the electronic deposit option to work:
Please Note: If taxpayers experience technical difficulties making their pass-through entity tax payment electronically on AZTaxes.gov, they may use Arizona Form 120/165ES to make a payment by paper and include the EIN on the check to ensure the payment is accounted for correctly. See forms instructions for information on making online and paper payments.[5]
[1] 2022 Pass-Through Estimated Payment Guidance for Partnerships and S Corporations, Arizona Department of Revenue Website, September 6, 2022, https://azdor.gov/media-center/latest-press-releases/news/2022-pass-through-estimated-payment-guidance-partnerships (retrieved September 6, 2022)
[2] 2022 Pass-Through Estimated Payment Guidance for Partnerships and S Corporations, Arizona Department of Revenue Website, September 6, 2022
[3] 2022 Pass-Through Estimated Payment Guidance for Partnerships and S Corporations, Arizona Department of Revenue Website, September 6, 2022
[4] 2022 Pass-Through Estimated Payment Guidance for Partnerships and S Corporations, Arizona Department of Revenue Website, September 6, 2022
[5] 2022 Pass-Through Estimated Payment Guidance for Partnerships and S Corporations, Arizona Department of Revenue Website, September 6, 2022
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