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For the tax imposed under title 43, chapter 10 of Arizona law, the state's late-filing penalty may not be assessed when a taxpayer's total liability is zero, starting with taxable periods beginning after December 31, 2025.
Official title: tax returns; late filing; penalties
- September 12, 2026
- Applies to taxable periods beginning after December 31, 2025
What changes
BeforeThe late-filing penalty (4.5% of the tax per month late, up to 25%) listed no exception for taxpayers whose total liability under the title 43, chapter 10 tax was zero.
NowFor the title 43, chapter 10 tax, the late-filing penalty may not be assessed if the taxpayer's total liability is zero.
Who it affects
- Taxpayers who file returns for the tax imposed under title 43, chapter 10 and owe zero total tax
- Arizona Department of Revenue
What you need to do
Nothing.
What the law doesn't answer
- Which tax title 43, chapter 10 covers or who must file returns for it
- Whether other penalties, such as the penalty for not filing after the department demands a return, still apply to zero-liability returns for this tax
- Whether penalties already assessed for affected periods will be removed or refunded
This summary describes the law as enacted. Later laws, court rulings or referendum petitions can change the picture. Check the official text for the current wording.