120/165ES: 165ES Corporate and Partnership Estimated Tax Payment (2025)

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 expect Arizona tax liability of at least $1,000 for the year.
• Unitary groups filing combined Form 120 returns and Arizona affiliated groups filing consolidated Form 120 returns apply the $1,000 threshold as a single taxpayer, on a combined or 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 combine their separately calculated corporate and PTE estimated payments.

Who should use this paper form?

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

Do not submit this form for payments made by electronic funds transfer (EFT) or over the Internet. For voluntary composite estimated payments on behalf of participating nonresident individuals, partnerships and S corporations must use Form 140ES instead.

When it's due

For the 2025 tax year:

• Corporate estimated payments: Due by the 15th day of the 4th, 6th, 9th, and 12th months of the taxable year, whether the taxpayer uses a calendar or fiscal year.
• 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 that have federal-level tax liability and make the Arizona PTE election.

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

What you'll need

Have the following information ready to complete Form 120/165ES:

• The taxable year covered, including beginning and ending dates for a fiscal year.
• The firm's name exactly as it will appear on the return, address, EIN, and business phone number.
• The type of tax return filed and applicable PTE election status.
• The quarter the payment covers and the payment amount in whole dollars.
• Any name, address, or EIN changes, including the previous EIN if it changed.

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

How to file

Mail

If eligible to use the paper form, complete it in full. Select the tax year, return type, and payment quarter. Enter the payment amount on line 2 in whole dollars.

Check box A for the first return under the listed name and EIN, box B for a name or address change, or box C for an EIN change. If checking box C, enter the previous EIN.

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 with no fee. The account is debited on the date specified.
• Credit card: The payment service provider charges a convenience fee, disclosed before you choose whether to complete the transaction.

Keep the confirmation number as proof of payment. Do not submit Form 120/165ES when paying electronically.

Taxpayers expecting current-year tax liability of at least $1,000 must pay estimated tax by EFT. Those expecting 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 general EFT instructions require an authorization agreement at least 30 days before the first applicable transaction, including for voluntary EFT participants. The Internet payment instructions state that advance registration with the department is no longer required for Internet EFT payments.

Common mistakes

• Leaving the form incomplete: Complete the entire form so the payment is applied properly.
• Entering cents: Round to the nearest whole dollar. Round up for 50 cents or more and down for less than 50 cents.
• Leaving the EIN off the payment: Include it on the payment and make the check payable to the Arizona Department of Revenue.
• Sending the paper form after paying electronically: Do not submit Form 120/165ES for EFT or Internet payments.
• Ignoring the EFT requirement: A payment required to be made by EFT but paid another way is subject to a penalty of 5% of that payment.
• Paying corporate installments late or short: Required corporate installments that are late or underpaid are subject to a penalty. If the tax estimate changes, recompute the installments and adjust future payments. Make an immediate catch-up payment to reduce any penalty from earlier underpayments.
• Discarding payment confirmation numbers: Keep them as proof of electronic payment.

Questions people ask

How do I calculate my estimated installments?

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

Is there a fee to pay from my bank account online?

No. The e-check option at www.AZTaxes.gov has no fee and can debit a checking or savings account.

Can I use this form for composite payments for nonresident owners?

No. Partnerships and S corporations must use Form 140ES for voluntary composite estimated payments on behalf of participating nonresident individual partners or shareholders filing a composite Arizona Form 140NR return.

What if my expected tax liability changes after I make a payment?

Recompute the required installments and adjust payments due on or after the new estimate. The form directs taxpayers to make an immediate catch-up payment to reduce penalties from earlier underpayments.

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, and other tax information are available at www.azdor.gov.

Official sources

• https://azdor.gov/forms