reglab/statecodes huggingface dataset:
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 18 - STATE TAX PROCEDURE GENERALLY (§§ 26-18-101 — 26-18-1120) › Subchapter 5 - LIABILITY AND PAYMENT (§§ 26-18-501 — 26-18-509) › Section 26-18-501 - Liability for tax payment generally

(a)
The liability for the payment of taxes imposed under any state tax law is on the taxpayer or person as identified by the particular state tax law.
(b)
Any person required to collect, truthfully account for, and pay over any state tax who willfully fails to collect the tax, or truthfully account and pay over the tax, or willfully attempts in any manner to evade or defeat any tax or the payment thereof, shall, in addition to other penalties provided by law, be liable to a penalty equal to the total amount of the tax evaded, or not collected, or not accounted for and paid over.
(c)
As used in this section, "person" includes an officer, director, or employee of a corporation, a partner or employee of a partnership, or a member, manager, or employee of a limited liability company, who, as an officer, director, employee, partner, member, or manager is under a duty to perform the act in respect to which the violation occurs.
(d)
This section shall not apply to the payment of corporate income taxes.
Acts 1979, No. 401, § 7; A.S.A. 1947, § 84-4707; Acts 1995, No. 1160, § 24.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 18 - STATE TAX PROCEDURE GENERALLY (§§ 26-18-101 — 26-18-1120) › Subchapter 5 - LIABILITY AND PAYMENT (§§ 26-18-501 — 26-18-509) › Section 26-18-502 - Transferee liability

(a)
The liability, at law or in equity, of the transferee of property of any person liable for any tax imposed by a law of the State of Arkansas shall be the same as that of the transferor and may be assessed and collected from the transferee in the same manner and subject to the same provisions as the transferor.
(b)
The period of limitation for assessment of any liability of a transferee or a fiduciary shall be within one (1) year after the expiration of the period of limitation for assessment against the transferor.
(c)
As used in this section, unless the context otherwise requires, "transferee" includes the donee, heir, legatee, devisee, and distributee and, with respect to estate tax, also includes any person who is personally liable for any part of the tax.
Acts 1979, No. 401, § 42; A.S.A. 1947, § 84-4742.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 18 - STATE TAX PROCEDURE GENERALLY (§§ 26-18-101 — 26-18-1120) › Subchapter 5 - LIABILITY AND PAYMENT (§§ 26-18-501 — 26-18-509) › Section 26-18-503 - Remittance of taxes

(a)
When a return of tax is required to be filed, the person required to make the return shall, without assessment or notice and demand from the Secretary of the Department of Finance and Administration, pay the tax to the secretary at the time and place fixed for filing the return, determined without regard to any extension of time for filing the return.
(b)
All remittances required to be paid under any state tax law shall be made payable to the Department of Finance and Administration by bank draft, check, cashier's check, money order, or money. The secretary shall issue a receipt, if requested, to the taxpayer for every cash payment. No remittance, other than cash, is a final discharge of liability due the secretary until it has been paid in cash.
Acts 1979, No. 401, § 9; A.S.A. 1947, § 84-4709.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 18 - STATE TAX PROCEDURE GENERALLY (§§ 26-18-101 — 26-18-1120) › Subchapter 5 - LIABILITY AND PAYMENT (§§ 26-18-501 — 26-18-509) › Section 26-18-504 - Final accounts of fiduciaries

(a)
No final account of any fiduciary shall be allowed by a probate division of circuit court of the state unless the account shows, and the probate division of circuit court finds, that all taxes imposed by any state tax law which are due have been paid and that all taxes which may become due are secured by bond, security deposit, or otherwise. To the extent that a tax certificate of the Secretary of the Department of Finance and Administration shows payment, it shall be conclusive.
(b)
For the purpose of facilitating the settlement and distribution of the estates held by fiduciaries, the secretary may agree upon the amount of taxes due, or to become due, from the fiduciaries under the provisions of any state tax law, and payment in accordance with the agreement shall be in full satisfaction of all taxes to which the agreement relates.
Acts 1979, No. 401, § 30; A.S.A. 1947, § 84-4730.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 18 - STATE TAX PROCEDURE GENERALLY (§§ 26-18-101 — 26-18-1120) › Subchapter 5 - LIABILITY AND PAYMENT (§§ 26-18-501 — 26-18-509) › Section 26-18-505 - Extension of time for filing returns

(a)
(1)
Upon written request and for good cause, the Secretary of the Department of Finance and Administration may grant a reasonable extension of time to file any return required under any state tax law.
(2)
The secretary shall keep a record of every extension granted with the reason the extension was granted.
(3)
Except for a corporation income tax return as provided in §
26-51-807(c)
, the time for filing any return shall not be extended more than one hundred eighty (180) days.
(4)
The secretary may promulgate rules to grant automatic extensions of time to file income tax returns and information returns without the taxpayer being required to submit a written application for the extension of time to file.
(b)
When an extension of time to file is granted, the taxpayer may file a tentative return on or before the original due date showing the estimated amount of tax due for the period covered by the return and may pay the estimated tax or the first installment at the same time.
(c)
(1)
No interest shall be accrued or assessed against any sums paid on or before the original due date.
(2)
Any state tax not paid when due because the secretary granted an extension of time for payment shall bear interest at the rate of ten percent (10%) per annum from the date originally due until paid.
(d)
(1)
For purposes of granting an extension of time for filing a return under this section, "good cause" includes, but is not limited to:
(A)
An instance in which the taxpayer is determined for federal tax purposes to be affected by a presidentially declared disaster under the provisions of
26 U.S.C. § 7508A
, as in effect on January 1, 1999; and
(B)
An instance in which the taxpayer is determined to be affected by a disaster emergency as declared by the Governor under §
12-75-107
.
(2)
In the event that an extension of time for filing a return is granted to a taxpayer affected by a presidentially declared disaster or a disaster emergency declared by the Governor, no interest or penalty shall accrue for the extension period granted by the secretary.
Amended by Act 2019, No. 315,§ 2943, eff. 7/24/2019.
Acts 1979, No. 401, § 10; 1981, No. 403, § 2; 1983, No. 379, § 22; A.S.A. 1947, § 84-4710; Acts 1991, No. 685, § 8; 1999, No. 1126, § 4; 2005, No. 686, § 1; 2007, No. 369, § 1.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 18 - STATE TAX PROCEDURE GENERALLY (§§ 26-18-101 — 26-18-1120) › Subchapter 5 - LIABILITY AND PAYMENT (§§ 26-18-501 — 26-18-509) › Section 26-18-506 - Preservation of records by taxpayers

(a)
It is the duty of every taxpayer required to make a return of any tax due under any state tax law to keep and preserve suitable records as are necessary to determine the amount of tax due or to prove the accuracy of any return.
(b)
Unless otherwise provided by law, the taxpayer is required to keep and maintain all records within the State of Arkansas and for at least six (6) years after a return was filed. These records are subject to examination by the Secretary of the Department of Finance and Administration at any reasonable time.
(c)
When the records required by this section are kept outside the State of Arkansas in the usual course of business, they shall be produced within the state within fifteen (15) days after receipt of demand by the secretary. If the taxpayer determines it is impractical, then the taxpayer may request, and the secretary may grant, permission to have the records audited wherever they may be.
(d)
When a taxpayer fails to preserve and maintain the records required by any state tax law, the secretary may, in his or her discretion, make an estimated assessment based upon information available to him or her as to the amount of tax due by the taxpayer. The burden of proof of refuting this estimated assessment is upon the taxpayer.
Acts 1979, No. 401, § 11; A.S.A. 1947, § 84-4711.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 18 - STATE TAX PROCEDURE GENERALLY (§§ 26-18-101 — 26-18-1120) › Subchapter 5 - LIABILITY AND PAYMENT (§§ 26-18-501 — 26-18-509) › Section 26-18-508 - Interest on deficiencies and overpayments

Interest shall be collected on tax deficiencies and paid on overpayments as follows:
(1)
A tax levied under any state tax law which is not paid when due is delinquent. Interest at the rate of ten percent (10%) per annum shall be collected on the total tax deficiency from the date the return for the tax was due to be filed until the date of payment;
(2)
Interest on a tax deficiency shall be assessed at the same time as the tax deficiency. The tax deficiency together with the interest shall be paid upon notice and demand by the Secretary of the Department of Finance and Administration;
(3)
When any overpayment has been made by a taxpayer, the overpayment shall be refunded together with interest at the rate of ten percent (10%) per annum;
(4)
Interest on overpayments shall be paid from the date the return for the tax was due to be filed or the date the return is filed, whichever occurs later, until a date, to be determined by the secretary, preceding the date of the refund warrant by not more than thirty (30) days, whether or not the warrant is accepted by the taxpayer; and
(5)
No interest shall be allowed on an overpayment of tax that is refunded by the secretary within ninety (90) days after the last date provided for filing the return for the tax including any extension of time for filing the return, or ninety (90) days after the date the return is filed, whichever occurs later.
Amended by Act 2019, No. 670,§ 1, eff. 7/24/2019.
Acts 1979, No. 401, § 8; 1983, No. 379, § 21; A.S.A. 1947, § 84-4708; Acts 1989, No. 910, § 3; 2005, No. 262, § 1; 2007, No. 827, § 197.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 18 - STATE TAX PROCEDURE GENERALLY (§§ 26-18-101 — 26-18-1120) › Subchapter 5 - LIABILITY AND PAYMENT (§§ 26-18-501 — 26-18-509) › Section 26-18-509 - Liability for payment of taxes - Falsification of sales transaction records

A person who violates §
5-37-507
is liable to the state for a civil penalty equal to the total amount of the tax evaded, not collected, or not accounted for and paid over to the Secretary of the Department of Finance and Administration that results from the violation.
Amended by Act 2019, No. 910,§ 3627, eff. 7/1/2019.
Added by Act 2013, No. 1076,§ 3, eff. 8/16/2013.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 18 - STATE TAX PROCEDURE GENERALLY (§§ 26-18-101 — 26-18-1120) › Subchapter 6 - LICENSES, PERMITS, AND REGISTRATIONS (§§ 26-18-601 — 26-18-602) › Section 26-18-602 - Judicial review of cancellation decision

(a)
(1)
A taxpayer may seek judicial relief from an administrative decision rendered after a hearing cancelling a license, permit, or registration by filing suit within thirty (30) days of the date of the administrative decision.
(2)
Jurisdiction for suit under subdivision (a)(1) of this section is in the Pulaski County Circuit Court or the Arkansas circuit court of the county in which the taxpayer resides or has his or her principal place of business, where the matter shall be tried de novo.
(3)
(A)
A taxpayer shall not operate a business after thirty (30) calendar days from the issuance of an administrative decision cancelling a license, permit, or registration unless the taxpayer obtains an order from the circuit court staying the effect of the administrative decision.
(B)
An order of a circuit court to stay the effect of an administrative decision may be revoked if the Secretary of the Department of Finance and Administration provides proof that the taxpayer has failed to timely file returns for taxes administered by the secretary or has failed to timely pay taxes administered by the secretary after the date suit is filed under this section.
(b)
The secretary may seek judicial relief from an adverse decision of the Tax Appeals Commission under §
26-18-1117
by filing suit in circuit court within thirty (30) calendar days of the date of the decision.
Amended by Act 2021, No. 593,§ 18, eff. 1/1/2023.
Acts 1979, No. 401, § 17; A.S.A. 1947, § 84-4717.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 18 - STATE TAX PROCEDURE GENERALLY (§§ 26-18-101 — 26-18-1120) › Subchapter 7 - ENFORCEMENT (§§ 26-18-701 — 26-18-708) › Section 26-18-702 - Injunction proceedings

(a)
When a return required under any state tax law has not been filed or does not furnish all the information required by the Secretary of the Department of Finance and Administration or when the taxes imposed by any state tax law have not been paid or when any required license or permit has not been secured, the secretary, in the name of the State of Arkansas, may institute any necessary action or proceeding in the Pulaski County Circuit Court to enjoin the person or taxpayer from continuing operations until the report or return has been filed, required licenses or permits secured, or taxes paid as required.
(b)
The injunction shall be issued without a bond being required from the state.
Acts 1979, No. 401, § 28; A.S.A. 1947, § 84-4728.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 18 - STATE TAX PROCEDURE GENERALLY (§§ 26-18-101 — 26-18-1120) › Subchapter 7 - ENFORCEMENT (§§ 26-18-701 — 26-18-708) › Section 26-18-703 - Appointment of receivers

At the request of the Secretary of the Department of Finance and Administration, the court shall appoint a receiver to manage the property of the taxpayer upon a proper showing by the secretary that the claim of the state of any state tax is in danger of being lost or rendered uncollectible because of mismanagement, dissipation, or concealment of the property by the taxpayer.
Acts 1979, No. 401, § 28; A.S.A. 1947, § 84-4728.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 18 - STATE TAX PROCEDURE GENERALLY (§§ 26-18-101 — 26-18-1120) › Subchapter 7 - ENFORCEMENT (§§ 26-18-701 — 26-18-708) › Section 26-18-704 - Proceedings against localities

When a county, city, town, or other political subdivision of the state fails or refuses to pay any tax due under any state tax law, the procedure for collecting the tax shall be the same as for any other taxpayer.
Acts 1979, No. 401, § 29; A.S.A. 1947, § 84-4729.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 18 - STATE TAX PROCEDURE GENERALLY (§§ 26-18-101 — 26-18-1120) › Subchapter 7 - ENFORCEMENT (§§ 26-18-701 — 26-18-708) › Section 26-18-705 - Settlement or compromise of liability controversies

(a)
The Secretary of the Department of Finance and Administration may enter into an agreement to compound, settle, or compromise any controversy relating to a state tax or any admitted or established tax liability as to any tax collectible under any state law when:
(1)
The controversy is over the amount of tax due; or
(2)
The inability to pay results from the insolvency of the taxpayer.
(b)
The secretary may waive or remit the interest, penalty, or certificate of indebtedness filing fees, or any portion of the interest, penalty, or certificate of indebtedness filing fees, ordinarily accruing or incurred by the secretary because of a taxpayer's failure to pay a state tax within the statutory period allowed for its payment:
(1)
If the taxpayer's failure to pay the tax is satisfactorily explained to the secretary;
(2)
If the failure results from a mistake by the taxpayer of either the law or the facts subjecting him or her to such tax; or
(3)
If the inability to pay the interest or penalty results from the insolvency or bankruptcy of the taxpayer.
(c)
(1)
In settling or compromising any controversy relating to the liability of a person for any state tax for any taxable period, the secretary may enter into a written closing agreement concerning the liability.
(2)
When the closing agreement is signed by the secretary, it shall be final and conclusive, and except upon a showing of fraud or misrepresentation of a material fact, no additional assessment or collection shall be made by the secretary, and the taxpayer shall not file a protest of the assessment under §
26-18-404
, file a petition under the Independent Tax Appeals Commission Act, §
26-18-1101
et seq., or institute a judicial proceeding to recover such liabilities as agreed to in the closing agreement.
(d)
The secretary shall promulgate rules establishing guidelines for determining whether a proposed offer in compromise is adequate and is acceptable to resolve a tax dispute.
Amended by Act 2021, No. 593,§ 20, eff. 1/1/2023.
Amended by Act 2021, No. 145,§ 1, eff. 7/28/2021.
Amended by Act 2019, No. 315,§ 2944, eff. 7/24/2019.
Amended by Act 2019, No. 910,§ 3636, eff. 7/1/2019.
Acts 1979, No. 401, § 24; A.S.A. 1947, § 84-4724; Acts 1999, No. 1126, § 5.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 18 - STATE TAX PROCEDURE GENERALLY (§§ 26-18-101 — 26-18-1120) › Subchapter 7 - ENFORCEMENT (§§ 26-18-701 — 26-18-708) › Section 26-18-706 - Release of property from lien

(a)
Upon written application by any person, the Secretary of the Department of Finance and Administration may release affected property from the lien imposed by any assessment, order, judgment, or certificate of indebtedness obtained by or from any levy made by the secretary if:
(1)
Either full payment is made to the secretary of the sum he or she considers adequate consideration for the release, including any costs the circuit clerk is entitled to receive as provided by law in these matters; or
(2)
Adequate security deposit is made with the secretary to secure the payment of the debt evidenced by the lien, including any costs the circuit clerk is entitled to receive as provided by law in these matters.
(b)
When the secretary determines that his or her assessment, certificate of indebtedness, or judgment is clouding the title of property because of an error in the description of properties or similarity in names, the secretary may issue a release without the payment of any consideration or any costs the circuit clerk is entitled to receive, as provided by law in these matters.
(c)
The secretary's release shall be given under his or her seal and filed in the office of the circuit clerk in the county in which the lien is filed, or it shall be recorded in any office in which conveyances of real estate may be recorded.
Acts 1979, No. 401, § 25; A.S.A. 1947, § 84-4725; Acts 2003, No. 1085, § 3.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 18 - STATE TAX PROCEDURE GENERALLY (§§ 26-18-101 — 26-18-1120) › Subchapter 7 - ENFORCEMENT (§§ 26-18-701 — 26-18-708) › Section 26-18-707 - Extension of comity

The courts of this state shall recognize and enforce liability for taxes lawfully imposed by other states which extend a like comity to this state.
Acts 1979, No. 401, § 31; A.S.A. 1947, § 84-4731.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 18 - STATE TAX PROCEDURE GENERALLY (§§ 26-18-101 — 26-18-1120) › Subchapter 7 - ENFORCEMENT (§§ 26-18-701 — 26-18-708) › Section 26-18-708 - Spousal relief - Definitions

(a)
If a return required under any state tax law has been filed by spouses and the amount of tax due on the return was understated by either the omission of an amount properly includable in the return or by erroneous deductions or credits attributable to one (1) spouse, upon written request, the Secretary of the Department of Finance and Administration may relieve the other spouse of liability for any tax, penalty, or interest attributable to the understatement of tax for that return.
(b)
In determining whether to grant the relief set out in subsection (a) of this section, the secretary may take into consideration the following factors:
(1)
Whether the spouse making the request for relief has significantly benefited, either directly or indirectly, from the understatement of tax;
(2)
Whether the spouse making the request for relief knew or had reason to know of the understatement of tax; and
(3)
Any other fact or circumstance that would make it inequitable to hold the spouse making the request for relief liable for the deficiency resulting from the understatement of tax.
(c)
As used in subdivision (b)(2) of this section, "reason to know" means whether a reasonably prudent person would have known that an understatement was made.
(d)
As used in subsection (a) of this section, "attributable to one (1) spouse" means that the understatement on the return was the result of the actions taken or information supplied by that spouse.
Acts 1999, No. 1126, § 6.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 18 - STATE TAX PROCEDURE GENERALLY (§§ 26-18-101 — 26-18-1120) › Subchapter 8 - TAXPAYER BILL OF RIGHTS (§§ 26-18-801 — 26-18-812) › Section 26-18-801 - Title

This subchapter may be cited as the "Taxpayer Bill of Rights".
Acts 1989, No. 590, § 1.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 18 - STATE TAX PROCEDURE GENERALLY (§§ 26-18-101 — 26-18-1120) › Subchapter 8 - TAXPAYER BILL OF RIGHTS (§§ 26-18-801 — 26-18-812) › Section 26-18-802 - Disclosure of rights of taxpayer

(a)
The Secretary of the Department of Finance and Administration shall, as soon as practicable, but not later than one hundred eighty (180) days after July 3, 1989, prepare a statement which sets forth in simple and nontechnical terms:
(1)
The rights of a taxpayer and the obligations of the secretary during an audit;
(2)
The procedure by which a taxpayer may appeal any adverse decision of the secretary, including administrative and judicial appeals;
(3)
The procedures for prosecuting refund claims and for filing of taxpayer complaints; and
(4)
The procedures which the secretary may use in enforcing the state's revenue laws, including assessment, estimated assessment, jeopardy assessment, and the filing and enforcement of liens.
(b)
The statement prepared in accordance with subsection (a) of this section shall be distributed by the secretary to a taxpayer:
(1)
When a proposed assessment of any state tax is made against the taxpayer or when the taxpayer is contacted by the secretary for an examination of the taxpayer's records, whichever is earlier;
(2)
When requested by the taxpayer; and
(3)
At any time the secretary deems it appropriate.
(c)
The secretary shall take such actions as the secretary deems necessary to ensure that such distribution does not result in multiple statements being sent to any one (1) taxpayer.
Acts 1989, No. 590, § 1.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 18 - STATE TAX PROCEDURE GENERALLY (§§ 26-18-101 — 26-18-1120) › Subchapter 8 - TAXPAYER BILL OF RIGHTS (§§ 26-18-801 — 26-18-812) › Section 26-18-804 - Abatement of penalty or addition to tax due to erroneous written advice by secretary - Limitations

(a)
In General.
The Secretary of the Department of Finance and Administration shall abate any portion of any penalty or addition to tax attributable to erroneous advice furnished to the taxpayer in writing by an agent of the secretary acting in such agent's official capacity.
(b)
Limitations.
The provisions of subsection (a) of this section shall apply only if:
(1)
The written advice was reasonably relied upon by the taxpayer and was in response to a specific written request of the taxpayer; and
(2)
The portion of the penalty or addition to tax did not result from a failure by the taxpayer to provide adequate or accurate information.
Acts 1989, No. 590, § 1.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 18 - STATE TAX PROCEDURE GENERALLY (§§ 26-18-101 — 26-18-1120) › Subchapter 8 - TAXPAYER BILL OF RIGHTS (§§ 26-18-801 — 26-18-812) › Section 26-18-805 - Basis for evaluation of employees

The Secretary of the Department of Finance and Administration shall not use records of tax collection results to:
(1)
Evaluate employees directly involved in collection activities, and their immediate supervisors; or
(2)
Impose or suggest production quotas or goals with respect to employees directly involved in collection activities, and their immediate supervisors.
Acts 1989, No. 590, § 1.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 18 - STATE TAX PROCEDURE GENERALLY (§§ 26-18-101 — 26-18-1120) › Subchapter 8 - TAXPAYER BILL OF RIGHTS (§§ 26-18-801 — 26-18-812) › Section 26-18-806 - Content of tax due, deficiency, and other notices

(a)
General Rule.
(1)
Any notice to which this section applies shall:
(A)
Describe the basis for the tax due and any interest, additional amounts, additions, and assessable penalties;
(B)
Identify the amounts, if any, of the tax due, interest, additional amounts, additions to the tax, and assessable penalties included in the notice; and
(C)
Provide contact information for the taxpayer to use if the taxpayer wants to obtain his or her tax records, including without limitation the facts and evidence supporting the proposed deficiency, from the Department of Finance and Administration.
(2)
An inadequate description under this subsection shall not invalidate such notice.
(b)
Notice to Which Section Applies.
This section shall apply to:
(1)
Any notice to be given by the Secretary of the Department of Finance and Administration described in §
26-18-307
;
(2)
Any notice generated out of any information return matching program; and
(3)
The first letter of the proposed deficiency which allows the taxpayer an opportunity for administrative review under this chapter.
Amended by Act 2017, No. 881,§ 2, eff. 8/1/2017.
Acts 1989, No. 590, § 1.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 18 - STATE TAX PROCEDURE GENERALLY (§§ 26-18-101 — 26-18-1120) › Subchapter 8 - TAXPAYER BILL OF RIGHTS (§§ 26-18-801 — 26-18-812) › Section 26-18-807 - Agreements for payment of tax liability in installments

(a)
Authorization of Agreements.
The Secretary of the Department of Finance and Administration is authorized to enter into written agreements with any taxpayer under which such taxpayer is allowed to satisfy liability for payment of any tax in installment payments, if the secretary determines that such agreement will facilitate collection of such liability.
(b)
Extent to Which Agreements Remain in Effect.
(1)
In General.
Except as otherwise provided in this subsection, any agreement entered into by the secretary under subsection (a) of this section shall remain in effect for the term of the agreement.
(2)
Inadequate Information or Jeopardy.
The secretary may terminate any agreement entered into by the secretary under subsection (a) of this section if the following conditions apply:
(A)
Information that the taxpayer provided to the secretary prior to the date such agreement was entered into was inaccurate or incomplete; or
(B)
The secretary believes that collection of any tax to which an agreement under this section relates is in jeopardy.
(3)
Subsequent Change in Financial Conditions.
(A)
In General.
If the secretary makes a determination that the financial condition of a taxpayer with whom the secretary has entered into an agreement under subsection (a) of this section has significantly changed, the secretary may alter, modify, or terminate such agreement.
(B)
Notice.
Action may be taken by the secretary under subdivision (b)(3)(A) of this section only if:
(i)
Notice of such determination is provided to the taxpayer no later than thirty (30) days prior to the date of such action; and
(ii)
Such notice includes the reasons why the secretary believes a significant change in the financial condition of the taxpayer has occurred.
(4)
Failure to Pay an Installment or any Other Tax Liability When Due or to Provide Requested Financial Information.
The secretary may alter, modify, or terminate an agreement entered into by the secretary under subsection (a) of this section in the case of the failure of the taxpayer to:
(A)
Pay any installment at the time such installment payment is due under such agreement;
(B)
Pay any other tax liability at the time such liability is due; or
(C)
Provide a financial condition update as requested by the secretary.
Acts 1989, No. 590, § 1.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 18 - STATE TAX PROCEDURE GENERALLY (§§ 26-18-101 — 26-18-1120) › Subchapter 8 - TAXPAYER BILL OF RIGHTS (§§ 26-18-801 — 26-18-812) › Section 26-18-808 - Civil damages for failure to release lien

(a)
In General.
If any employee of the Secretary of the Department of Finance and Administration knowingly, or by reason of negligence, fails to release a lien under §
26-18-706
or §
26-18-811
on property of the taxpayer, such taxpayer may bring a civil action for damages against the secretary in court.
(b)
Damages.
In any action brought under subsection (a) of this section, upon a finding of liability on the part of the defendant, the defendant shall be liable to the plaintiff in an amount equal to the sum of the following:
(1)
Actual, direct, economic damages sustained by the plaintiff which, but for the action of the defendant, would not have been sustained; plus
(2)
The costs of the action.
(c)
Limitations.
(1)
Requirement that Administrative Remedies Be Exhausted.
A judgment for damages shall not be awarded under subsection (b) of this section, unless the court determines that the plaintiff has exhausted the administrative remedies available to such plaintiff within the Revenue Division of the Department of Finance and Administration.
(2)
Mitigation of Damages.
The amount of damages awarded under subdivision (b)(1) of this section shall be reduced by the amount of such damages which could have reasonably been mitigated by the plaintiff.
(3)
Period for Bringing Action.
Notwithstanding any other provision of the law, an action to enforce liability created under this section may be brought without regard to the amount in controversy and may be brought only within two (2) years after the date the right of action accrues.
(d)
Notice of Failure to Release Lien.
The secretary shall by rule prescribe reasonable procedures for a taxpayer to notify the secretary of the failure to release a lien on property of the taxpayer.
Amended by Act 2019, No. 315,§ 2945, eff. 7/24/2019.
Acts 1989, No. 590, § 1.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 18 - STATE TAX PROCEDURE GENERALLY (§§ 26-18-101 — 26-18-1120) › Subchapter 8 - TAXPAYER BILL OF RIGHTS (§§ 26-18-801 — 26-18-812) › Section 26-18-809 - Civil damages for certain unauthorized collection actions

(a)
In General.
If, in connection with any collection of state tax with respect to a taxpayer, any employee of the Revenue Division of the Department of Finance and Administration, recklessly or intentionally disregards any provision of this title, or any rule promulgated under this title, such taxpayer may bring a civil action for damages against the Secretary of the Department of Finance and Administration. Except as provided in §
26-18-808
, such civil action shall be the exclusive remedy for recovering damages resulting from such actions.
(b)
Damages.
In any action brought under subsection (a) of this section, upon a finding of liability on the part of the defendant, the defendant shall be liable to the plaintiff in an amount equal to the lesser of ten thousand dollars ($10,000) or the sum of:
(1)
Actual, direct economic damages sustained by the plaintiff as a proximate result of the reckless or intentional actions of the officer or employee; and
(2)
The costs of the action.
(c)
Limitations.
(1)
Requirement that Administrative Remedies Be Exhausted.
A judgment for damages shall not be awarded under subsection (b) of this section unless the court determines that the plaintiff has exhausted the administrative remedies available to such plaintiff within the division.
(2)
Mitigation of Damages.
The amount of damages awarded under subdivision (b)(1) of this section shall be reduced by the amount of such damages which could have reasonably been mitigated by the plaintiff.
(3)
Period for Bringing Action.
Notwithstanding any other provision of law, an action to enforce liability created under this section may be brought without regard to the amount in controversy and may be brought only within two (2) years after the date the right of action accrues.
(d)
Damages for Frivolous or Groundless Claims.
Whenever it appears to the court that the taxpayer's position in proceedings before the court instituted or maintained by such taxpayer under this section, is frivolous or groundless, then damages in an amount not in excess of ten thousand dollars ($10,000) shall be awarded to the Department of Finance and Administration by the court in the court's decision. Damages so awarded shall be assessed at the same time as the decision and shall be paid upon notice and demand from the secretary.
Amended by Act 2019, No. 315,§ 2946, eff. 7/24/2019.
Acts 1989, No. 590, § 1.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 18 - STATE TAX PROCEDURE GENERALLY (§§ 26-18-101 — 26-18-1120) › Subchapter 8 - TAXPAYER BILL OF RIGHTS (§§ 26-18-801 — 26-18-812) › Section 26-18-810 - Disclosure or use of information by preparers of returns

(a)
Imposition of Penalty.
If any person who is engaged in the business of preparing, or providing services in connection with the preparation of, returns of tax administered under this chapter, or when any person who, for compensation prepares any such return for any other person, and who:
(1)
Discloses any information furnished to him or her for, or in connection with, the preparation of any such return; or
(2)
Uses any such information for any purpose other than to prepare, or assist in preparing, any such return,
shall pay a penalty of two hundred fifty dollars ($250) for each such disclosure or use, but the total amount imposed under this subsection on such a person for any calender year shall not exceed ten thousand dollars ($10,000).
(b)
Subsection (a) of this section shall not apply to a disclosure of information if such disclosure is made either:
(1)
Pursuant to any other provision of this subchapter;
(2)
Pursuant to an order of a court; or
(3)
For quality or peer reviews, which are conducted under the auspices of the American Institute of Certified Public Accountants or the United States Securities and Exchange Commission.
(c)
Subsection (a) of this section shall be in addition to the provisions of §
26-18-303
.
Acts 1989, No. 590, § 1; 1991, No. 998, § 1.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 18 - STATE TAX PROCEDURE GENERALLY (§§ 26-18-101 — 26-18-1120) › Subchapter 8 - TAXPAYER BILL OF RIGHTS (§§ 26-18-801 — 26-18-812) › Section 26-18-811 - Administrative appeal of liens

(a)
In General.
In such form and at such time as the Secretary of the Department of Finance and Administration shall prescribe by rule, any person shall be allowed to appeal to the secretary after the filing of a notice of a lien under this subchapter on the property or the rights to property of such person, for a release of such lien alleging an error in the filing of the notice of such lien.
(b)
Certification of Release.
If the secretary determines that the filing of the notice of any lien was erroneous, the secretary shall expeditiously, and, to the extent practicable, within fourteen (14) days after such determination, issue a certificate of release of such lien and shall include in such certificate a statement that such filing was erroneous.
Amended by Act 2019, No. 315,§ 2947, eff. 7/24/2019.
Acts 1989, No. 590, § 1.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 18 - STATE TAX PROCEDURE GENERALLY (§§ 26-18-101 — 26-18-1120) › Subchapter 8 - TAXPAYER BILL OF RIGHTS (§§ 26-18-801 — 26-18-812) › Section 26-18-812 - [Repealed]

Repealed by Act 2019, No. 393,§ 2, eff. 7/24/2019.
Acts 1989, No. 590, § 1.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 18 - STATE TAX PROCEDURE GENERALLY (§§ 26-18-101 — 26-18-1120) › Subchapter 9 - TAXPAYER ASSISTANCE (§§ 26-18-901 — 26-18-904) › Section 26-18-901 - Office of Problems Resolution and Tax Information

(a)
The Secretary of the Department of Finance and Administration shall request the General Assembly to appropriate funds and create positions for an Office of Problems Resolution and Tax Information, which shall resolve taxpayer problems directly and provide information to taxpayers concerning tax law. This office shall report directly to the secretary or his or her designee.
(b)
The secretary shall have the authority to establish the duties of the office. The office shall give highest priority to reviewing taxpayer problems and taking prompt and appropriate action to resolve problems and respond to taxpayers.
Amended by Act 2019, No. 910,§ 3637, eff. 7/1/2019.
Acts 1991, No. 998, § 2.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 18 - STATE TAX PROCEDURE GENERALLY (§§ 26-18-101 — 26-18-1120) › Subchapter 9 - TAXPAYER ASSISTANCE (§§ 26-18-901 — 26-18-904) › Section 26-18-902 - Tax Advisory Council

(a)
The Secretary of the Department of Finance and Administration shall establish a Tax Advisory Council consisting of representatives of the Arkansas Bar Association, the Arkansas Society of Certified Public Accountants, the Arkansas Society of Accountants, the Office of Problems Resolution and Tax Information, other taxpayer-oriented groups, and other representatives of the Revenue Division of the Department of Finance and Administration.
(b)
The council shall meet annually to discuss tax law changes, compliance problems, and other related matters, and it shall study methods to expedite claims for refunds, protests, appeals, and cases which take an inordinate amount of time to complete.
(c)
The council will develop and submit a report to the chairs of the House Committee on Revenue and Taxation and the Senate Committee on Revenue and Taxation.
Amended by Act 2019, No. 910,§ 3638, eff. 7/1/2019.
Acts 1991, No. 998, § 3.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 18 - STATE TAX PROCEDURE GENERALLY (§§ 26-18-101 — 26-18-1120) › Subchapter 9 - TAXPAYER ASSISTANCE (§§ 26-18-901 — 26-18-904) › Section 26-18-903 - Employee evaluation criteria

The Secretary of the Department of Finance and Administration shall develop employee evaluation criteria requiring compliance with the Taxpayer Bill of Rights, §
26-18-801
et seq., and quality taxpayer assistance, which shall be included in the annual evaluation of each employee whose job responsibilities include taxpayer contact.
Amended by Act 2019, No. 910,§ 3639, eff. 7/1/2019.
Acts 1991, No. 998, § 4.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 18 - STATE TAX PROCEDURE GENERALLY (§§ 26-18-101 — 26-18-1120) › Subchapter 9 - TAXPAYER ASSISTANCE (§§ 26-18-901 — 26-18-904) › Section 26-18-904 - Collection activity - Erroneous action - Claim for damages

(a)
A claim may be filed with the Department of Finance and Administration for any actual damages sustained as a result of any erroneous action taken in a collection activity. Each claimant applying for reimbursement shall file a claim in such form as may be prescribed by the Secretary of the Department of Finance and Administration. In order for the claim to be granted, the claimant must establish that:
(1)
The actual damage resulted from an error made by the Revenue Division of the Department of Finance and Administration; and
(2)
Prior to the actual damage, the taxpayer responded to all contacts by the division and provided all requested information or documentation sufficient to establish the taxpayer's position. This provision may be waived for reasonable cause.
(b)
(1)
(A)
Claims made pursuant to this section shall be filed within ninety (90) calendar days after the date the actual damage was sustained.
(B)
Within thirty (30) calendar days after the date the claim is received, the claim shall be approved or denied.
(2)
If a claim is denied, the taxpayer shall be notified in writing of the reason for the denial of the claim.
Amended by Act 2019, No. 910,§ 3640, eff. 7/1/2019.
Acts 1991, No. 998, § 5.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 18 - STATE TAX PROCEDURE GENERALLY (§§ 26-18-101 — 26-18-1120) › Subchapter 10 - BUSINESS CLOSURE (§§ 26-18-1001 — 26-18-1006) › Section 26-18-1001 - Business closure authority - Notice

(a)
In addition to all other remedies provided by law for the collection of unpaid taxes, the Secretary of the Department of Finance and Administration may close the business of a noncompliant taxpayer as defined by §
26-18-104
, subject to the administrative and judicial appeal procedures in this subchapter, if the noncompliant taxpayer for three (3) times within any consecutive twenty-four-month period fails to either:
(1)
Report in the manner required by Arkansas law:
(A)
Gross receipts or compensating use tax; or
(B)
State income tax withholding for employees; or
(2)
Remit the tax that is due for the reporting period for:
(A)
Gross receipts or compensating use tax; or
(B)
State income tax withholding for employees.
(b)
(1)
The secretary shall give notice to the noncompliant taxpayer that the third delinquency in reporting or remitting tax in any consecutive twenty-four-month period will result in the closure of the business.
(2)
The notice must be in writing and delivered to the noncompliant taxpayer by the United States Postal Service or by hand delivery.
(c)
(1)
If the noncompliant taxpayer has a third delinquency in reporting or remitting tax in any consecutive twenty-four-month period after the issuance of the notice provided in subsection (b) of this section, the secretary shall notify the noncompliant taxpayer by certified mail or by hand delivery that the business will be closed within five (5) business days from the date of the notice unless the noncompliant taxpayer makes arrangements with the secretary to satisfy the tax delinquency.
(2)
When the fifth day falls on a Saturday, Sunday, or legal holiday, the performance of the act is considered timely if it is performed on the next succeeding business day that is not a Saturday, Sunday, or legal holiday.
(d)
A noncompliant taxpayer may avoid closure of the business by:
(1)
Filing all delinquent reports and by remitting the delinquent tax including any interest and penalty; or
(2)
Entering into a payment agreement approved by the secretary to satisfy the tax delinquency.
(e)
After written notice delivered to a lottery retailer by the United States Postal Service or by hand delivery, the secretary may pursue a remedy under this subchapter against a lottery retailer as a noncompliant taxpayer upon receiving a referral from the Office of the Arkansas Lottery under §
23-115-605
.
Amended by Act 2019, No. 910,§ 3645, eff. 7/1/2019.
Amended by Act 2019, No. 910,§ 3644, eff. 7/1/2019.
Amended by Act 2019, No. 910,§ 3643, eff. 7/1/2019.
Amended by Act 2019, No. 910,§ 3642, eff. 7/1/2019.
Amended by Act 2019, No. 910,§ 3641, eff. 7/1/2019.
Amended by Act 2015, No. 218,§ 30, eff. 2/26/2015.
Acts 2003 (2nd Ex. Sess.), No. 46, § 2; 2009, No. 360, § 3; 2009, No. 605, § 24; 2009, No. 606, § 24.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 18 - STATE TAX PROCEDURE GENERALLY (§§ 26-18-101 — 26-18-1120) › Subchapter 10 - BUSINESS CLOSURE (§§ 26-18-1001 — 26-18-1006) › Section 26-18-1004 - Business closure procedure

(a)
If a noncompliant taxpayer fails to timely seek administrative or judicial review of a business closure decision or if the business closure decision is affirmed after administrative or judicial review, the Secretary of the Department of Finance and Administration shall affix a written notice to all entrances of the business that:
(1)
Identifies the business as being subject to a business closure order; and
(2)
States that the business is prohibited from further operation.
(b)
(1)
The secretary may also lock or otherwise secure the business so that it may not be operated.
(2)
However, if the business is located in the noncompliant taxpayer's home, the secretary shall not lock or otherwise secure the business but may post the notice under subsection (a) of this section.
(c)
The secretary may request the assistance of the Division of Arkansas State Police or any state or local law enforcement official to post the notice or to secure the business as authorized in this section.
(d)
Any taxpayer information disclosed by the secretary under the procedures outlined in this section shall not be subject to the confidentiality provisions of §
26-18-303
.
Amended by Act 2019, No. 910,§ 3659, eff. 7/1/2019.
Amended by Act 2019, No. 910,§ 3658, eff. 7/1/2019.
Amended by Act 2019, No. 910,§ 3657, eff. 7/1/2019.
Acts 2003 (2nd Ex. Sess.), No. 46, § 2.