Form JT-1, the Arizona Joint Tax Application, can be confusing. Even the name of the form may seem misleading. While ‘joint' is often used to refer to married couples for tax purposes, here, it refers to the form's use by both the Department of Revenue and the Department of Economic Security.

Businesses will file Form JT-1 to report:

•         Transaction Privilege Tax (TPT)
•         Use Tax
•         Withholding or unemployment tax
•         City TPTs

Form JT-1 requires that taxpayers report the business's ownership or type of organization. This includes naming owners. 

The Details Matter

Like many tax forms, one of the challenges with Form JT-1 is not missing any of the details. This can include knowing the difference between types of taxes, filing requirements, and where a business operates. 

For example, for TPT, a business's total tax liability affects how often they have to file. A business's total estimated tax liability is the total of its municipal, county, and Arizona TPT liability. 

•         For a total liability of under $2,000, a business must file and pay taxes annually
•         For a total liability between $2,000 and $8,000, a business must file and pay taxes quarterly
•         For a total liability over $8,000, a business must pay taxes monthly

For unemployment taxes, business owners need to know when individuals perform excluded services. 

A business's location is also relevant for city fees, and location affects the total cost. In 2023, for example, Tombstone had a $1 license fee, while Tempe had a $50 license fee. Chandler, Phoenix, and Scottsdale have specific license fees for residential license fees. These license fees are for each business location, not just a headquarters or main office. 

Failure to pay these fees can result in a license being suspended or not issued. These license fees are separate from withholding and employment insurance, as well as use tax. 

Form JT-1 also covers multiple types of taxes at local, county, and state levels. A business also needs to know how these interact with the federal tax laws.

If you need help or have questions about Form JT-1, 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.