What Are Arizona’s 1099 Filing Requirements?

Form 1099 is an information return used to report various types of income paid to non-employees. For businesses and payers in Arizona, understanding the state-specific filing obligations is important for annual tax compliance. These requirements dictate when and how to submit 1099 data to the Arizona Department of Revenue (ADOR), a process that is distinct from federal filing obligations with the IRS.

Determining Your Arizona Filing Obligation

The primary factor determining whether a business must file 1099s with the Arizona Department of Revenue is state income tax withholding. If a payer withholds any amount of Arizona income tax from payments made to a recipient, they are required to file copies of the corresponding 1099 forms directly with the ADOR. This applies to various 1099 series forms, such as the 1099-NEC for nonemployee compensation or the 1099-MISC for other income like rent.

Conversely, if no Arizona income tax was withheld, there is no direct state filing requirement for most 1099 forms. Arizona participates in the Combined Federal/State Filing (CF/SF) Program, through which the IRS automatically forwards the federally filed 1099 information to the ADOR. An exception to this rule is Form 1099-S, which must be filed directly with Arizona if the transaction involves real estate located in the state, regardless of whether tax was withheld.

Arizona aligns with federal payment thresholds, meaning if a federal 1099 is required for payments of $600 or more, the payer must then assess their state withholding to determine their Arizona filing duty.

Required Information and Forms

Payers must collect the recipient’s full name, address, and Taxpayer Identification Number (TIN), as well as the payer’s own name, address, and Employer Identification Number (EIN). The most effective method for collecting recipient information is by requesting a completed federal Form W-9, Request for Taxpayer Identification Number and Certification, from each vendor before issuing payment.

The federal Forms 1099-NEC and 1099-MISC are the primary documents that report the payments and any federal or state income tax withheld. Once these are prepared, payers must use Arizona’s specific reconciliation forms.

For payers who withheld Arizona income tax, Form A1-R, the Arizona Withholding Reconciliation Return, is mandatory. This form serves to reconcile the total state income tax reported on all W-2s and 1099s with the total amount of tax remitted to the ADOR. To complete Form A1-R, you will need the total compensation paid and the total Arizona tax withheld for all recipients. If a business made payments that require a federal 1099 but was not required to withhold Arizona tax, it must file Form A1-APR, the Arizona Annual Payment Reconciliation.

The Filing Process with the Arizona Department of Revenue

The Arizona Department of Revenue encourages electronic filing and mandates it for certain taxpayers. The primary portal for electronic submission is AZTaxes.gov, and users must first register for an account. The ADOR does not accept Form 1099-NEC for electronic filing; these must be submitted via optical media or as a paper document.

The only Form 1099 versions accepted electronically are:

• 1099-DIV
• 1099-MISC
• 1099-S
• 1099-R

The system allows for manual data entry or uploading a formatted file containing the 1099 and reconciliation data. After submission, the system provides a confirmation number, which should be retained for your records.

For those who are not required to file electronically or have an approved waiver, a mail-in option is available. When filing by mail, a transmittal Form A1-T is required when submitting paper copies of 1099s. This is sent along with the completed and signed reconciliation form (A1-R or A1-APR). The mailing address for Form A1-R is Arizona Department of Revenue, P.O. Box 29009, Phoenix, AZ 85038-9009. For Form A1-APR, use Arizona Department of Revenue, P.O. Box 29072, Phoenix, AZ 85038-9072.

Key Deadlines and Due Dates

Payers must furnish copies of Form 1099 to all payees by January 31 of the year following the payment year. This ensures recipients have the necessary information to prepare their own income tax returns.

The deadlines for filing with the Arizona Department of Revenue are also on January 31. This due date applies to both Form A1-R (for those who withheld state tax) and Form A1-APR (for those who did not). An exception to this is Form 1099-S, which has a filing deadline of March 31.

Tax deadlines can shift if they fall on a weekend or a legal holiday, in which case the due date moves to the next business day.