Which Form should be used to file an Arizona State Corporation Tax Return?
Arizona State requires that a corporation file its corporation tax return using either "Form 120 or Form 120A."
A corporation is required to file Form 120 if the corporation meets any of the following requirements as follows;
(1) has income from business activity that is taxable in more than one state (a“multistate corporation”);
(2) is a partner in a multistate partnership and/or a partnership that conducts no business in Arizona;
(3) is a member of a unitary group of corporations that files an Arizona return on a combined basis;
(4) is a member of an affiliated group of corporations that elects to file an Arizona consolidated return.
A corporation is required to file Form 120Aif the corporation meets any of the following requirements as follows;
The corporation can only use "Form 120A" if it files its return on a separate company (separate entity) basis and has income from business activity that is taxable entirely within Arizona (a “wholly Arizona corporation”).