120/165ES: 165ES Corporate and Partnership Estimated Tax Payment (2024)

Who files this form

Who must make estimated payments

• C corporations, S corporations subject to federal-level tax, and exempt organizations with unrelated business taxable income must make Arizona estimated payments if they anticipate Arizona tax liability of at least $1,000 for the year.
• A unitary group filing a combined Form 120 applies the $1,000 threshold on a combined basis. An Arizona affiliated group filing a consolidated Form 120 applies it on a consolidated basis.
• Partnerships and S corporations making the pass-through entity (PTE) election must make estimated payments if their previous year's taxable income exceeds $150,000.
• S corporations subject to federal-level tax and making the PTE election must make estimated payments if their previous year's total taxable income exceeds $150,000. They must combine their separately calculated corporate and PTE estimated payments.

Who should use the paper form

Form 120/165ES is for taxpayers granted a waiver from the electronic payment requirement. Taxpayers anticipating tax liability below $500 who want to make voluntary estimated payments may also mail this form with payment.

For voluntary composite estimated payments on behalf of participating nonresident individual partners or shareholders, partnerships and S corporations must use Form 140ES instead.

When it's due

For tax year 2024, the form gives these schedules:

• Corporate estimated payments: Due by the 15th day of the 4th, 6th, 9th, and 12th months of the taxable year, for both calendar-year and fiscal-year taxpayers.
• Partnerships and S corporations making the PTE election: Due by the 15th day of the 4th, 6th, and 9th months of the taxable year. The final payment is due by the 15th day of the 1st month after the taxable year closes. This schedule also applies to S corporations subject to federal-level tax that make the Arizona PTE election.

If a payment due date falls on a weekend or legal holiday, payment is timely if made on the next business day.

What you'll need

Have these details ready to complete the paper form:

• The taxable year covered, including beginning and ending dates for a fiscal year.
• The firm's name, address, and employer identification number (EIN), as they will appear on the tax return.
• The business phone number, including area code.
• The quarter the payment covers and the payment amount in whole dollars.
• The previous EIN, if the EIN has changed.
• Whether this is the first return under the listed name and EIN, or whether the name or address has changed.

Use Form 120/PTE-W, Estimated Tax Worksheet for Corporations, to calculate required installments. For a mailed payment, make the check payable to Arizona Department of Revenue and include the EIN on the payment.

How to file

Mail, if eligible to use the paper form

Complete Form 120/165ES in full. Select the calendar or fiscal year, enter the taxpayer information, check the quarter on line 1, and enter the whole-dollar payment on line 2. Check boxes A, B, or C as applicable for an initial return or changed information.

Make the check payable to Arizona Department of Revenue, include the EIN on the payment, and mail the form and payment to:

Arizona Department of Revenue

PO Box 29085

Phoenix, AZ 85038-9085

Pay electronically

Visit www.AZTaxes.gov, select “Make a Corporation/S-Corporation/Partnership Payment”, and follow the prompts.

• E-check: Pay from a checking or savings account without a fee. The account is debited on the date specified.
• Credit card: American Express, Discover, MasterCard, and Visa are accepted. The payment service provider charges a convenience fee and gives you the option to continue or cancel.

Keep the confirmation number as proof of payment. Do not submit Form 120/165ES when paying by EFT or over the Internet.

Taxpayers anticipating liability of at least $1,000 must pay estimated taxes by electronic funds transfer (EFT). Those anticipating more than $500 but less than $1,000 are not required to make estimated payments, but must use EFT if they choose to pay.

The form requires an EFT authorization agreement at least 30 days before the first applicable transaction for required and voluntary EFT participants. It separately states that Internet EFT payments no longer require advance registration with the department.

Common mistakes

• Leaving the form incomplete: Complete it in its entirety so the payment is applied properly.
• Sending a paper form with an electronic payment: Do not submit Form 120/165ES for payments made by EFT or over the Internet.
• Not using EFT when required: A penalty of 5% applies to the payment amount not made by EFT.
• Paying corporate installments late or underpaying: Required corporate installments that are late or underpaid are subject to a penalty.
• Including cents: Round to the nearest whole dollar. Round up for 50 cents or more and down for less than 50 cents.
• Omitting the EIN from a mailed payment: Include the EIN and make the check payable to Arizona Department of Revenue.
• Losing electronic payment proof: Keep the confirmation number generated for an e-check or completed credit card payment.

Questions people ask

How do I calculate the required installments?

Use Form 120/PTE-W, Estimated Tax Worksheet for Corporations.

What if my estimated tax liability changes after I have paid an installment?

Recompute the required installments and adjust installments payable on or after the new estimate. Make an immediate catch-up payment to reduce any penalty from earlier underpayments.

Can I make a voluntary payment if my anticipated 2024 liability is below $500?

Yes. You may mail Form 120/165ES with payment or choose voluntary participation in the EFT program.

How do I enter a foreign address?

Enter the city, province or state, and country in that order. Follow the country's practice for the postal code, and do not abbreviate the country name.

Where can I get help?

Call (602) 255-3381 in Phoenix, or (800) 352-4090 toll-free from area codes 520 and 928. Tax forms, instructions, rulings, procedures, and other tax information are available at www.azdor.gov.

Official sources

• https://azdor.gov/forms