Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 4 - COLLECTION AND ENFORCEMENT (§§ 26-34-101 — 26-39-503) › Chapter 36 - COLLECTION OF DELINQUENT TAXES (§§ 26-36-201 — 26-36-321) › Subchapter 3 - SETOFF AGAINST STATE TAX REFUND (§§ 26-36-301 — 26-36-321) › Section 26-36-315 - Joint refunds

(a)
When a taxpayer who is a debtor as defined in this subchapter has filed a joint return for which he or she is due a refund or has filed a separate return on the same form resulting in a joint refund, the entire amount of the refund shall be subject to setoff.
(b)
(1)
The Secretary of the Department of Finance and Administration shall notify each taxpayer due a joint refund of the amount and the date of a proposed setoff for a debt certified by a claimant agency to the Revenue Division of the Department of Finance and Administration.
(2)
The notice under subdivision (b)(1) of this section shall be in writing and sent to the address listed on the taxpayer's most recently filed income tax return.
(c)
(1)
(A)
A taxpayer who claims that he or she is not a debtor of a claimant agency may seek administrative relief by filing a written protest or petition under oath within thirty (30) days after the notice under subdivision (b)(1) of this section is received.
(B)
The written protest or petition shall be signed by the nondebtor taxpayer or the nondebtor taxpayer's authorized agent and include documentation:
(i)
Certified by the claimant agency verifying that the nondebtor taxpayer is not a debtor of the claimant agency; and
(ii)
Supporting the proportionate share of the nondebtor taxpayer's payment of tax and the resulting amount of the joint refund that the nondebtor taxpayer claims is not subject to setoff.
(C)
Administrative relief is not available to a nondebtor taxpayer who fails to:
(i)
Timely submit a protest or a petition regarding a proposed setoff after the notice under subdivision (b)(1) of this section is received; or
(ii)
Provide the documentation required under subdivision (c)(1)(B) of this section.
(2)
The nondebtor taxpayer may request the secretary or the Tax Appeals Commission to consider his or her request for relief upon written documents furnished by the nondebtor taxpayer or upon the written documents and the evidence produced by the nondebtor taxpayer at a hearing conducted under the Arkansas Tax Procedure Act, §
26-18-101
et seq., or the Independent Tax Appeals Commission Act, §
26-18-1101
et seq.
(3)
(A)
The secretary or the commission, as applicable, shall:
(i)
Set the time and place of the hearing; and
(ii)
Provide written notice of the hearing at least thirty (30) days before the scheduled hearing.
(B)
At the hearing scheduled under subdivision (c)(3)(A) of this section, the nondebtor taxpayer may:
(i)
Be represented by an authorized representative; and
(ii)
Present evidence in support of his or her position.
(d)
After the hearing scheduled under subdivision (c)(3)(A) of this section, the hearing officer or the commission, as applicable, shall render a decision in writing and shall serve copies on the nondebtor taxpayer, the secretary, and the claimant agency by first class mail.
(e)
The hearings on written protests and decisions made by the hearing officer or the commission are not subject to the Arkansas Administrative Procedure Act, §
25-15-201
et seq.
(f)
(1)
After the issuance and service of a decision of the hearing officer or the commission to sustain the setoff of the joint refund, a nondebtor taxpayer may seek judicial relief from the decision by filing suit within thirty (30) days after the date of the final decision of the hearing officer or the commission.
(2)
Jurisdiction for a suit to contest a decision of the hearing officer or the commission under this section shall be in the Pulaski County Circuit Court or the circuit court of the county where the nondebtor taxpayer resides, and the matter shall be tried de novo.
(g)
This section is the sole means by which a nondebtor taxpayer may challenge a proposed setoff for the benefit of a claimant agency.
Amended by Act 2021, No. 593,§ 23, eff. 1/1/2023.
Amended by Act 2019, No. 910,§ 3695, eff. 7/1/2019.
Amended by Act 2019, No. 910,§ 3694, eff. 7/1/2019.
Amended by Act 2019, No. 910,§ 3693, eff. 7/1/2019.
Acts 1983, No. 372, § 17; A.S.A. 1947, § 84-4917; Acts 2009, No. 713, § 1.