1) Why did I get a statement that says I owe money, when my tax return amount due and the payment I sent in equal?
There are many reasons for the difference, including the following:
- The amount due may have resulted from penalties imposed due to paying or filing your sales taxes late. All payments and returns must be received before the due date. Postmarks are not proof of timely payment or filing.
- Your payment may have been rejected by the bank.
- Our system reviews and recalculates each tax return. You may have performed a calculation error, filled out the form incorrectly or over-stated the tax collected deduction (64) or the standard 35% deduction.
- The listed Total Deductions on the front of the tax return form may have been provided without the itemized detail on the back of the tax return form.
- You may have claimed a deduction under "Other," line A20, but did not provide a valid explanation for the deduction or claimed a deduction that is not allowed.
If you have any questions regarding the detail shown on your City of Phoenix statement for tax periods prior to January 2017, please contact an Accounts Receivable Section representative.
2) How do I get a penalty waived for a tax period prior to January 2017?
- Any request for a waiver of penalty must be in writing and received by the City within 45 days of the first statement you received showing the penalty. Interest cannot be waived.
- Every penalty waiver request must include (a) the name of the licensed business, (b) the City license number, (c) the tax period, (d) a reason for requesting the waiver, (e) the amount of penalty, and (f) copies of any supporting documentation. Please send the penalty waiver request to the Accounts Receivable Section.
3) I am no longer in business. Why is the City sending me billing statements for unfiled tax returns for tax periods prior to January 2017?
Phoenix automatically cancelled all active tax licenses with an effective cancellation date of December 31, 2016. If you were not in business during a tax period prior to January 2017, please contact the City of Phoenix, Revenue Enforcement Division, Administration section with your license number, business name, reason for cancellation, revised cancellation date, your name, and your title.
4) I didn't have any gross sales. Why is the City sending me billing statements for unfiled returns for tax periods prior to January 2017?
A tax return must be filed for every tax period, whether or not tax is due. If you have no income to report, check the "no activity" box on the front of the City of Phoenix tax return form, sign, and mail the tax return back to the City. The City of Phoenix may estimate the tax, interest, and penalty due for non-filed returns at any time.
5) What do the codes on a City of Phoenix statement for a tax period prior to January 2017 signify?
B1. Deductions were not itemized in Schedule A on the back of the return.
B2. One or more deductions taken on your tax return were not valid for the reporting activity.
B3. The standard 35% contracting deduction was miscalculated. A construction contracting worksheet is available on our website to
assist with the calculations.
B4. Excess tax was calculated by the City based on the reported income and total tax collected deduction.
B5. The total of individual deductions on the back of the return do not match the deduction total on the front.
B6. There was a mathematical error on your return.
B7. The tax return was received after the last working day of the month in which it was due.
B8. Taxpayer self-assessment of penalty/interest was miscalculated.
B9. The account credit taken on the tax return is not available.
B10. The amount owed was not paid in full.
B11. Additional monthly interest was charged on tax balances due.