AZ HB2114

Amends section 42-1107 of Arizona Revised Statutes regarding extensions of time for filing income tax returns.

Allows the Department to grant automatic extensions if at least 90 percent of tax liability is paid before the extension request deadline, with penalties of one-half of one percent per 30-day period (up to 25 percent maximum) if this threshold is not met.

Extends the maximum aggregate extension period from six months to seven months after the initial due date for corporate and exempt organization income tax returns.

Applies retroactively to taxable years beginning after December 31, 2020.