Arizona Requirement to File Ptrshp Return Electronically; Waiver Request
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Arizona Requirement to File Ptrshp Return Electronically; Waiver Request This message is directed to members of clubs based in Arizona. Starting this year, the Arizona Department of Revenue (ADOR) requires partnership returns to be filed electronically unless the ADOR director grants a waiver. The waiver request form (number 292) can be found on the ADOR website under the "Forms" box. I suggest the treasurer submit the waiver request as soon as possible so the waiver can be received before the filing deadline. Without the waiver, investment clubs will need to hire a third-party tax professional with ADOR-approved software to submit the return. ADOR is receiving reports that the cost from AZ-based tax preparers may be at least $750. There is a link through bivio for this service for a cheaper rate. https://www.bivio.com/hn/State_Tax_Returns.html Personally, I don't believe non-commercial partnerships like investment clubs should have to pay a third-party to file the AZ form 165. The only information we fill out on the form is contact and identifying information. None of the accounting numbers related to revenue or expenses is transferred from the federal return that is filed with it. There are no tax computations. Filling in the form 165 is purely a clerical exercise that for our seven members I can do quite easily. I have asked the Arizona Chapter of BI if it would be willing to coordinate with the Arizona-based clubs to mount an effort to make the waiver process permanent until such time as ADOR provides a means to enter this data directly through its website without the need for 3rd party software. I urge other members of Arizona-based clubs to communicate your support for this effort to the officers of the Arizona chapter. The email is: president@Arizona.betterinvesting.net ADOR may be liberal with the waivers initially, but I fear in a few years the waivers will not be given as freely. Now is the time to push for a permanent solution. I solicit information from treasurers of Arizona-based clubs to learn how many clubs there are in Arizona and how many members each has. A permanent solution will require legislative action so the more information about the impact of waiver requests on ADOR workload and the impact the denial of a waiver will have on members of an investment clubs the better. This information can be shared with me privately at ranby at outlook dot com. Jack Ranby, Treasurer Grants Partners Investment Club Jack, While I can provide e-file services to AZ clubs at a reasonable rate through Glenwood Tax Services, I fully support your efforts to get relief directly from your state's Department of Revenue and/or legislature. More and more states are imposing e-file requirements in the mistaken belief that all entities are "large" enough to require professional support services. If you can't get direct waiver relief, another endpoint you might want to pursue is for the state to create a webfile portal where the return can be completed on the ADOR website. Here in NJ, we have such a facility. I wish you the best in your efforts. Ira Smilovitz, EA Glenwood Tax Services On Wed, Jan 20, 2021 at 3:49 PM John W Ranby Trustee PGM Cariboo Trust via bivio.com <user*15792700001@bivio.com> wrote: This message is directed to members of clubs based in After a review of the legislation that mandated electronic filing of partnership returns, I noticed the following: 1) waivers may be granted for one year and renewed the following year, with no indication that waivers will be available after the second year; 2) waivers ARE NOT REQUIRED under certain circumstances, including when either the IRS or the Arizona Department of Revenue (AZDOR) has informed the partnership that it will not be required to file electronically. Therefore, if each investment club (partnership) can obtain a letter from AZDOR stating that the club is not required to file electronically, then the club may file paper returns, perhaps indefinitely. Of course, it would certainly be better if the legislature could be persuaded to modify the law (again), or if AZDOR would provide some means by which a partnership could file its returns electronically without requiring the intervention of a third party. Either solution will probably require a considerable amount of time to implement, so now is the time to contact your legislators and AZDOR to make your feelings known. William Peterson Former Arizona Chapter Director AZDOR retiree BetterInvesting non-club member I am looking at Arizona Form 165 (instructions) page 1. About half way down, in left column there is a note in italics that states "NOTE: A partnership that has no Arizona income, deductions or credits for taxable year 2020 is not required to file a partnership return for that year". If the club meets these conditions does that mean don't worry about the AZ return? > On January 20, 2021 at 3:48 PM "John W Ranby Trustee PGM Cariboo Trust via bivio.com" <user*15792700001@bivio.com> wrote: > > > This message is directed to members of clubs based in > Arizona. > > Starting this year, the Arizona Department of Revenue (ADOR) > requires partnership returns to be filed electronically > unless the ADOR director grants a waiver. The waiver request > form (number 292) can be found on the ADOR website under the > "Forms" box. I suggest the treasurer submit the waiver > request as soon as possible so the waiver can be received > before the filing deadline. > > Without the waiver, investment clubs will need to hire a > third-party tax professional with ADOR-approved software to > submit the return. ADOR is receiving reports that the cost > from AZ-based tax preparers may be at least $750. There is a > link through bivio for this service for a cheaper rate. > https://www.bivio.com/hn/State_Tax_Returns.html > > Personally, I don't believe non-commercial partnerships like > investment clubs should have to pay a third-party to file > the AZ form 165. The only information we fill out on the > form is contact and identifying information. None of the > accounting numbers related to revenue or expenses is > transferred from the federal return that is filed with it. > There are no tax computations. Filling in the form 165 is > purely a clerical exercise that for our seven members I can > do quite easily. > > I have asked the Arizona Chapter of BI if it would be > willing to coordinate with the Arizona-based clubs to mount > an effort to make the waiver process permanent until such > time as ADOR provides a means to enter this data directly > through its website without the need for 3rd party software. > I urge other members of Arizona-based clubs to communicate > your support for this effort to the officers of the Arizona > chapter. The email is: president@Arizona.betterinvesting.net > ADOR may be liberal with the waivers initially, but I fear > in a few years the waivers will not be given as freely. Now > is the time to push for a permanent solution. > > I solicit information from treasurers of Arizona-based clubs > to learn how many clubs there are in Arizona and how many > members each has. A permanent solution will require > legislative action so the more information about the impact > of waiver requests on ADOR workload and the impact the > denial of a waiver will have on members of an investment > clubs the better. This information can be shared with me > privately at ranby at outlook dot com. > > Jack Ranby, Treasurer > Grants Partners Investment Club Technically, yes. Did your club not have any dividends, interest, or capital gains? How did you get your bivio subscription? Any of these items require an AZ return. Besides that, the IRS shares information with the state tax agencies. If you file a federal return, the state tax authority (ADOR) will be looking for a tax return. Ira Smilovitz, EA I am looking at Arizona Form 165 (instructions) page 1.
Hi, I am trying to figure this Arizona thing out. We do have one member living in Arizona now so do I go through all our stocks in the club and see if any are headquartered in Arizona if so that stock would have us file Arizona state tax? If no stocks in Arizona but one member lives there will I still need to file Arizona state tax? Thanks for your help! Mary Fine treasurer
Hi, I am trying to figure this Arizona thing out. We do have one member living in Arizona now so do I go through all our stocks in the club and see if any are headquartered in Arizona if so that stock would have us file Arizona state tax? If no stocks in Arizona but one member lives there will I still need to file Arizona state tax? Thanks for your help! Mary Fine treasurer Mary: Based on the facts you present, you do NOT need to file an Arizona Partnership return. It is the domicile of the partnership (under the laws of what state was it created) that governs whether it needs to file in Arizona. So only if your partnership was organized under Arizona law do you need to file in AZ. Neither the ownership of shares of AZ-based companies nor partners living in AZ triggers a filing requirement. Jack Ranby Thank You!!! Mary > On 01/22/2021 6:04 PM John W Ranby Trustee PGM Cariboo Trust via bivio.com <user*15792700001@bivio.com> wrote: > > > Hi, I am trying to figure this Arizona thing out. We do have > one member living in Arizona now so do I go through all our > stocks in the club and see if any are headquartered in > Arizona if so that stock would have us file Arizona state > tax? If no stocks in Arizona but one member lives there will > I still need to file Arizona state tax? Thanks for your > help! Mary Fine treasurer > > Mary: Based on the facts you present, you do NOT need to > file an Arizona Partnership return. It is the domicile of > the partnership (under the laws of what state was it > created) that governs whether it needs to file in Arizona. > So only if your partnership was organized under Arizona law > do you need to file in AZ. Neither the ownership of shares > of AZ-based companies nor partners living in AZ triggers a > filing requirement. > Jack Ranby |
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