42-1107. Extension of time for filing returns

A. The department, pursuant to administrative rule, may grant an automatic extension of time for filing an income tax return under title 43 if at least ninety per cent of the tax liability disclosed by the taxpayer's return for the reporting period is paid and if the request for extension is received or mailed on or before the date the return is otherwise due to be filed. If at least ninety per cent of the tax liability disclosed by the taxpayer's return for the reporting period has not been paid at the time of filing for the extension, the taxpayer is subject to a penalty of one-half of one per cent of the tax not paid for each thirty day period or fraction of a thirty day period elapsing between the date the return is otherwise due to be filed and the date the tax is paid, not to exceed a total of twenty-five per cent. If a taxpayer is subject to both of the penalties prescribed under this section and section 42-1125, the maximum combined penalty that may be imposed on the taxpayer under both sections shall not exceed twenty-five per cent of the tax found to be remaining due. A taxpayer is not subject to the penalties prescribed under section 42-1125, subsection D if the taxpayer is subject to the penalties prescribed under this section. If in its judgment good cause exists, the department may grant a further extension or extensions of time for filing the return pursuant to administrative rule. No extension or extensions granted under this subsection may aggregate more than six months from the due date provided for the filing of returns.

B. If the taxpayer has been granted an extension or extensions of time within which to file a federal income tax return for any taxable year, the taxpayer is deemed to have been granted the same extension of time for filing the Arizona income tax return if the taxpayer has paid at least ninety per cent of the tax liability disclosed by the taxpayer's return for the reporting period. If at the time the taxpayer has been granted a federal extension or extensions the taxpayer is required to make the payment of at least ninety per cent under this section, the payment shall be in a manner prescribed by the department.

C. The department, for good cause, may extend the time for making any other return required by chapter 5, articles 1, 4 and 5 of this title, and may grant such reasonable additional time in which to make the return as it deems proper, but the time for filing the return shall not be extended beyond the first day of the third month next succeeding the regular due date of the return.