Does Arizona Accept a Federal Tax Extension?

An income tax extension provides taxpayers with additional time to submit their tax return, but it does not extend the deadline for paying any taxes owed. This distinction is important for both federal and state tax obligations. Understanding how state tax authorities, such as the Arizona Department of Revenue (ADOR), align with federal extension rules is crucial for taxpayers to remain compliant and avoid potential penalties.

Arizona’s Policy on Federal Extensions

Arizona generally aligns its individual income tax filing deadline with the federal deadline. If a taxpayer files for a federal income tax extension, Arizona typically grants an automatic extension for the same period. This means that in many common situations, a separate state extension form is not required for Arizona if a federal extension has been secured. When the Arizona return is eventually filed, taxpayers should indicate on their state return that a federal extension was filed, often by checking a specific box (e.g., box 82F on Form 140) to confirm this status. This acceptance is predicated on the understanding that any estimated tax liability due to Arizona is paid by the original tax deadline.

When a Separate Arizona Extension is Required

While Arizona generally accepts a federal extension, there are specific circumstances where a separate Arizona Form 140EXT or Form 204 may be necessary. One such scenario is if a taxpayer needs an extension for their Arizona return but has not filed for a federal extension. This could occur if a taxpayer is only required to file an Arizona return, perhaps as a non-resident with Arizona-specific income, and thus has no federal filing obligation.

Another situation demanding a distinct Arizona extension application arises if a federal extension was rejected. In such cases, or if there are unique state-level adjustments or specific circumstances that prevent the automatic acceptance of the federal extension, taxpayers must proactively file Arizona Form 140EXT to secure an extension for their state return. This ensures compliance with Arizona’s filing requirements even without a federal extension or in atypical situations.

Filing an Arizona Extension and Payment

When a separate Arizona extension is required, taxpayers can obtain the necessary Form 140EXT from the Arizona Department of Revenue (ADOR) website. This form allows taxpayers to request an automatic six-month extension to file their Arizona income tax return. The completed form can be submitted either electronically through the AZTaxes.gov portal or by mail.

To avoid penalties and interest, at least 90% of the estimated tax liability must be paid by the original due date, typically April 15. Payments can be made electronically via AZTaxes.gov, which often serves as the extension request itself if a payment is made, or by mail with Form 204. Failure to pay the required amount by the original deadline can result in an extension underpayment penalty of 0.5% per month on the unpaid balance, plus interest.