Does my Arizona AMLP need to file an Arizona Tax Return?

The question for most of our clients is: "Does my Arizona LP need to file an Arizona tax return if I am not a resident of the State and the partnership does not do any business in the State of Arizona?"

The Arizona Department of Revenue has clarified in a direct response to an inquiry from Lodmell & Lodmell, PC (See attached) the following:

"If the investing activity occurs in Arizona on a regular basis, the partnership is considered to be doing business in the state. (See ITR 94-9). However, if the investing takes place in another state (i.e. California) and the partnership does not conduct any business within the state and does not have Arizona source income, the partnership would not have Arizona income and would not be required to file an Arizona partnership return."

For most of our clients, this means that they will not have any requirement to file an Arizona partnership return. You should confirm with your CPA your exact situation as this is general advice and not specific to any particular client.