INSTRUCTIONS: ARIZONA S CORPORATION INCOME TAX RETURN (Form 120S)

S Corporations doing business in Arizona use a form 120S to file their income tax with the state. The document can be obtained from the website of the Arizona Department of Revenue.

Arizona S Corporation Income Tax Return 120S Step 1: Indicate whether you are filing for a calendar year or on a fiscal year basis. If the latter, give its starting and ending dates.

Arizona S Corporation Income Tax Return 120S Step 2: Enter your business telephone number, NAICS code, name, address, employer identification number and Arizona transaction privilege tax number.

Arizona S Corporation Income Tax Return 120S Step 3: Indicate with a check mark whether this is an original or amended return.

Arizona S Corporation Income Tax Return 120S Step 4: Indicate with a check mark if you are filing this return for the first time, or if this return documents a name or address change.

Arizona S Corporation Income Tax Return 120S Step 5: Answer the questions on lines A through G.

Arizona S Corporation Income Tax Return 120S Step 6: Enter your total distributive income or loss on line 1.

Arizona S Corporation Income Tax Return 120S Step 7: Lines 2 through 11 need only be completed by S corporations which have excess net passive income, capital gains or built-in gains. S corporations doing business in multiple states must complete Schedule A on the second page in order to determine their Arizona apportionment ratio, which should be entered on line 7.

Arizona S Corporation Income Tax Return 120S Step 8: If you are not required to complete lines 2 through 11, you must complete lines 12 through 34 if you have a tax liability from the recapture of tax credits.

Arizona S Corporation Income Tax Return 120S Step 9: All businesses must complete Schedule B on the second page, which requires miscellaneous information about your S corporation.

Arizona S Corporation Income Tax Return 120S Step 10: You must prepare a Schedule C document giving every shareholder's name, address, tax identification number, and pro rata share of your total distributive income or loss.

Arizona S Corporation Income Tax Return 120S Step 11: An officer of the S corporation should sign and date the form, as well as providing their title.