Arizona legislature made the decision to not fully conform to federal changes to the Internal Revenue Code in 2009 after the 2009 tax season had already ended. Due to the fact that many Arizona return filers will now have to amend their returns, on August 16, 2010 the State of Arizona Department of Revenue released Arizona Form 140X-NC ‘Individual Amended Income Tax Return – Non-Conformity Issues Only’ to be used to amend 2009 Arizona resident individual income tax returns if needed.

Note that if you file Form 140X-NC to report non-conformity changes and pay the entire tax due by October 17, 2011, you will not owe any penalties or interest on the additional tax.

Click here to determine if your 2009 Arizona return has been impacted by this change.

If your return was impacted by this change in Arizona legislature and you must amend your Arizona return, you must use “Arizona Form 140X-NC, Individual Amended Return for Non-Conformity Issues Only”. TaxACT has updated the 2009 Arizona program as of 09/01/2010 to include this new Arizona form. Please note that if you access your return after the update, if there was a change to your Arizona return due to these non-conformity issues, it would only result in an additional amount due and never an additional refund amount. The Federal return would not be affected by this change in the Arizona program.

The only purpose for the new Arizona Form 140X-NC is for taxpayers to make non-conformity changes (other than the net operating loss adjustments) to their previously filed Arizona individual income tax returns. Because this form is limited to non-conformity issues, it is simpler to complete than Arizona Form 140X.

To access Arizona Form 140X-NC in TaxACT, please do the following:

1. Log into your 2009 TaxACT Online return or open your Desktop program and Click on the Q&A button in the toolbar below the menu.

2. Click on the “State Q&A” tab and select “Arizona”.

3. Select “Amended Return for Non-Conformity Issues Only”.

4. Carefully read the text on the screen titled “Arizona Form 140X-NC – Non-Conformity Amended Return”. If you need to file Form 140X-NC, select “YES”.

5. The program will proceed with the interview questions for you to enter the appropriate information to complete the amended return. At the end of the process you will be prompted to print Form 140X-NC and then will be provided with the mailing address for the form.

It is very important to enter either the payment made with the original return filing (on the screen ‘Arizona – Payments with original return’) OR the refund received due to the original return filing (on the screen ‘Arizona – Original Overpayment’) in order for the additional amount due to be calculated correctly on Line 47 of Arizona Form 140X-NC.

What if you do not (or cannot) use Form 140X-NC?

If you amend your 2009 return but do not (or cannot) use Form 140X-NC, you will be billed for interest and possibly penalties. However, if the amended return includes adjustments you had to make for non-conformity issues and you filed and paid the tax by October 17, 2011, you should write to the Department for abatement of the penalties and interest related to non-conformity adjustments. Sign and date the request and include your telephone number and your tax identification number or social security number.

Send the request to:

Arizona Department of Revenue

Penalty Review Unit

1600 W. Monroe

Phoenix, AZ 85007