Ariz. Admin. Code § 15-5-2211

Current through Register Vol. 30, No. 24, June 14, 2024

Section R15-5-2211 - Election of Basis to Report and Pay Taxes

A. For purposes of this Section, the following definitions apply:

1. "Accrual method" means that a sale is reported in the reporting period in which the sale occurs regardless of when payment is received.

2. "Cash receipts method" means that a sale is reported in the reporting period in which payment is received.

3. "Method of reporting" means a method to report and pay transaction privilege tax.

4. "Payment" means all consideration received including cash, credit, property, and services.

5. "Reporting period" means a calendar month or as prescribed by A.R.S. § 42-5014.

B. A taxpayer shall elect a method of reporting based on either the accrual or the cash receipts method at the time of making the application for a transaction privilege tax license or use tax registration.

C. A taxpayer shall report allowable exclusions, deductions, and exemptions in a manner consistent with the method of reporting elected under subsection (B).

D. A taxpayer shall provide written notification to the Department prior to changing its method of reporting elected under subsection (B). The Department may audit the books of the taxpayer to adjust any tax liability resulting from the change in the method of reporting.

Ariz. Admin. Code § R15-5-2211

Repealed effective July 23, 1985 (Supp. 85-4). New Section renumbered from R15-5-2213 and amended effective October 14, 1993 (Supp. 93-4). Amended by final rulemaking at 14 A.A.R. 3616, effective November 8, 2008 (Supp. 08-3).