Hawaii and Arizona Expand E-Filing and Payment Requirements for Sales Tax

More businesses are required to electronically file and remit Arizona transaction privilege tax (TPT) and Hawaii General Excise Tax (GET) in 2020 than in previous years.

Arizona

As of January 1, 2020, businesses with an annual TPT or use tax liability of $5,000 or more in Arizona must pay and file returns electronically. The threshold has dropped significantly: In 2019, electronic payments and returns were required for businesses with an annual TPT or use tax liability of $10,000 or more.

Failure to file electronically as required will incur a penalty of 5% of the tax due (a minimum penalty of $25), and 5% of the amount of payment made by check or cash.

Online payments and returns can be made only when a business is registered on AZTaxes.gov. Payment must be made by credit card, e-check, or Automated Clearing House (ACH) debit. Additional information.

Hawaii

Taxpayers with annual GET liability of more than $4,000 must file periodic returns electronically starting July 1, 2020.

Additionally, annual GET returns must be filed electronically as of January 1, 2020.

Failure to file electronically as required will lead to a 2% penalty on the amount of tax due. However, an exception may be made if the failure to file electronically is due to “reasonable cause” and not neglect. Additional information.

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Gail Cole is a writer for Avalara.