Table of Contents

1099 E-Filing: Arizona

Eric Updated by Eric

Due date

January 31

E-filing threshold

Mandatory for Tax Year 2021 CD or Electronic filing

Filing options

  • 1099 series that report Arizona income tax withheld and 1099-S is required regardless of state withholding
  • Electronic filing for 1099-DIV, 1099-MISC and 1099-R
  • CD for all other forms that report income tax

Forms to file

Arizona requires any Form 1099 series if Arizona tax was withheld and 1099-S, including Form 1099-NEC.

Transmittal form

Form AZ A1-T is located in e-file/MagMedia Step 5 - State Submittal Screen under ‘State Forms’ menu.

Required file name

Any name with “.txt” at the end.

E-filing website

https://efile.aztaxes.gov/AZFSETPortal

Submitting files

The Arizona Department of Revenue (ADOR) has a system that allows registered users to electronically upload W-2 and 1099 data.

Arizona requires that only one 1099 type be included per uploaded file.

Submit all federal Forms W-2G and any federal Form 1099 series that report Arizona income tax withheld.

Any federal Form W-2G or federal Form-1099 series NOT reporting Arizona income tax withheld is not required to be submitted to the Arizona Department of Revenue (ADOR).

An online method for uploading federal Form 1099-NEC files is not available. Therefore, each federal Form 1099-NEC required to be submitted to the Arizona Department of Revenue (ADOR) must be submitted on CD or by paper document.

If only some of the required federal Forms are submitted using CD, include a statement that the remaining forms will be filed electronically or by paper.

Please contact If you have questions or need assistance azwebfilesupport@azdor.gov if you need help in electronically submitting your Arizona withholding return or the required federal attachments.

Registering with ADOR Before submitting return(s) or federal forms, the employer must register its Employer Identification Number (EIN) with ADOR.

• To register, an employer must complete Arizona Form JT-1, available here https://azdor.gov/forms/tpt-forms/ joint-tax-application-tpt-license. Form JT-1 may be mailed to the address on the form or it may be completed online at: www.AZTaxes.gov.

• To register online, go to www.AZTaxes.gov, click “Enroll to File and Pay Online” under the “Business” header. Complete the online form as instructed.

All employers will have the option of uploading all of their federal Forms W-2 and 1099 through AZTaxes.gov(link is external). The employer will key in the information from their Arizona Form A1-R, or their Arizona Form A1-APR, and then upload a text file containing the data from federal Forms W-2 or 1099.

Please contact If you have questions or need assistance azwebfilesupport@azdor.gov if you need help in electronically submitting your Arizona withholding return or the required federal attachments.

CD FIling Requirements

Create the CD using the format for Windows 7 or later operating system.

• Include an external label to identify the employer’s name, EIN, calendar year, name and phone number of file preparer, and form(s) included on the Optical Media.

• If the CD is password protected email the password to MediaLibrarian@azdor.gov. Include “Form W-2” or “Form 1099” (or both, whichever applies) in the subject line of the email. Also include the email address from which the password was sent on the label of the CD.

Secure the Optical Media in a hard case and include it with Form A1-R, Form A1-APR, or Form A1-T.

• ADOR recommends the use of encrypted email when transmitting confidential information electronically.

Send media to:

Arizona Department of Revenue

PO Box 29009

Phoenix, AZ 85038-9009

Form 1099-S Filing Requirement If a federal Form 1099-S is required to be filed to the IRS and the address or legal description is in Arizona, Form 1099-S must be filed to Arizona.

How to File Form 1099-S to Arizona The Arizona Department of Revenue (ADOR) maintains a website that permits a user to file Form 1099-S electronically. The web address for electronic filing is https://efile.aztaxes.gov/AZFSETPortal.

NOTE ON SPECIAL USE BY A REGISTERED USER: The landing page states that AZ Web File (AZFSET) is available for “Payroll Service Providers” and for filing and paying “Employer Withholding.” Despite the landing page heading, a person that must file federal Form 1099-S will register through this portal because federal 1099 forms are filed through the portal even if the user is not a payroll service provider.

A person that must file Form 1099-S will complete registration and filing through the following steps:

1. Complete the Payroll Service Company Registration found at https://efile.aztaxes.gov/AZFSETPortal/Account/Register . Select Web Upload or Transmitter, whichever applies.

2. Receive the ADOR confirmation email, complete and return the signature card.

3. Receive a second email confirmation from ADOR that enables a user to generate a valid password. Be sure to check spam for agency email. Add ADOR to email contacts to ensure receipt of future emails.

4. Complete registration by creating a valid password.

5. Click “Home” on the left-side menu of the “Registration Complete” screen.

6. Logon to AZFSET (follow steps specific to user type)

a. Web Upload User –

i. Under W2 and 1099?, select “Click Here”.

ii. Log on with username and password on the “AZFSET User Login” screen.

iii. Click “Continue” on the “Welcome to Web Upload” screen.

iv. Choose Form 1099-S from drop-down menu and upload each applicable federal Form. A user will be required to navigate through two subsequent system validations to ensure that file upload was successful and complete.

b. Transmitter –

i. Log on with username and password on AZ Web File Welcome screen.

ii. In the left menu, click “Resources” to access the WSDL that will be used for transmissions.

How did we do?

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