122: 122 Authorization & Consent of Subsidiary Corporation (2025)
Arizona · Arizona DOR · Used for tax years 2025
Arizona Form 122 records a subsidiary corporation’s authorization and consent to be included in its common parent corporation’s Arizona consolidated income tax return. The authorization applies to the indicated taxable year and succeeding years unless the department consents to a
Who files this form
Each subsidiary in a federal consolidated group must complete a separate Form 122 when the common parent elects to file an Arizona consolidated return for the first time.
The parent's election is effective only if it includes written consents signed by each member of the affiliated group. A current officer of each subsidiary must sign that subsidiary's consent form.
What you'll need
To complete Form 122, have the following information ready:
- The subsidiary's name, EIN, and mailing address.
- The common parent's name and EIN.
- Whether the form covers calendar year 2025 or a fiscal year beginning in 2025, including the fiscal-year dates if applicable.
- The signing corporate officer's signature, signing date, title, printed name, and phone number with area code.
The completed Forms 122 must accompany Form 120 for the first taxable year an Arizona consolidated return is filed.
How to file
- Type or print the information on a separate Form 122 for each subsidiary included in the federal affiliated group for the election year.
- Have a current officer of each subsidiary sign its form.
- Include all completed Forms 122 with Form 120 filed with the department for the first taxable year a consolidated return is filed.
The supplied form does not give a mailing address or e-file instructions. It refers readers to A.R.S. § 43-947 and the Form 120 instructions for more information about the election.
Common mistakes
- Leaving out a subsidiary's consent. The form says to complete a separate Form 122 for each subsidiary in the federal affiliated group.
- Missing the required signature. Each form must be signed by a current officer of that subsidiary.
- Omitting Forms 122 from the return. The completed forms must be included with Form 120 for the first taxable year a consolidated return is filed.
Questions people ask
What does Form 122 authorize?
It authorizes the common parent to include the subsidiary in an Arizona consolidated income tax return for the taxable year indicated.
Who may elect to file an Arizona consolidated return?
The common parent of an affiliated group that files a federal consolidated return may make the election.
Does the authorization apply to later years?
Yes. It applies to each succeeding taxable year unless the department consents to a change of filing method.
Who must sign the form?
A current officer of the subsidiary must sign. The officer declares under penalties of perjury that the subsidiary authorized the signature and that the information is correct and complete to the best of the officer's knowledge and belief.