Knowing when to file taxes is vital for businesses with a Transaction Privilege Tax (TPT) license. Failure to pay or file on time can create unnecessary work for TPT license holders and potentially cost them money. 

If you have an active license, even if you have zero sales or your business is temporarily closed, you must still file a TPT return. On that return, you will report that you had zero dollars in sales. If you do not file a return on time, as of 2024, you will be assessed a $25 penalty. 

When and How a Business Should File a TPT Return 

Arizona requires businesses to submit a monthly TPT return. These returns are due on the 20th of the month following the reporting month. In other words, the January TPT return is due February 20; the February return is due March 20, and so on. 

Taxpayers must also submit quarterly tax returns. These are also due on the 20th of the month following the reporting quarter. For example, the TPT return for the year's second quarter would be due July 20. 

Postmarks 

The Arizona Department of Revenue doesn't consider a postmark proof of timely filing. For example, the IRS counts forms mailed on April 15 as being filed on time, but Arizona requires receipt of a TPT Return by the 20th of the month or by any other stated deadline. This is one reason why the state encourages TPT licensees to file and pay their returns online. 

Why a Business Needs to File a TPT Return When They're Not Making Money 

The Arizona Department of Revenue isn't psychic. They only know that a business isn't making money if it informs the Department of Revenue that they've had no sales. 

Requiring all TPT licensees to file returns also potentially makes it easier for the Department of Revenue to identify licensees who aren't compliant. 

If you need help, call Senior Partner, Tax Controversy Attorney, and former IRS attorney Brandon A. Keim at (602) 200-7399 or contact him online to discuss your options.