Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › GROSS RECEIPTS TAX RULES › Rule 006.05.06-005-GR-85 - PENALTIES

Current through Register Vol. 49, No. 6, June, 2024
A. NEGLIGENCE
				PENALTY. If any part of a deficiency in tax is determined to be due to
				negligence or intentional disregard of these rules or state law, then a penalty
				of ten percent (10%) of the deficiency shall be added. If a fraud penalty, a
				failure to file penalty, or a failure to pay penalty is assessed, no negligence
				penalty will be assessed.
B. FRAUD
				PENALTY. If any part of a deficiency in tax required to be shown on a return is
				determined to be due to fraud, there shall be added to the tax an amount equal
				to fifty percent (50%) of the deficiency, in addition to any interest provided
				by law. If a fraud penalty is assessed, no negligence penalty, failure to file
				penalty, or failure to pay penalty will be assessed.
C. FAILURE TO FILE PENALTY. If a taxpayer
				fails to file a return on or before the first day of the month following the
				month in which a return was required to be filed, there shall be added to the
				tax a penalty of five percent (5%) of the tax due for each month or fraction of
				a month that the tax remains unreported. The penalty shall not exceed
				thirty-five percent (35%) of the tax due. No penalty will be assessed if the
				failure to file is due to reasonable cause and not to willful neglect. If a
				penalty is assessed for failure to file a return, no penalty will be assessed
				for failure to pay tax.
D. FAILURE
				TO PAY PENALTY. If a taxpayer fails to pay the reported tax on or before the
				first day of the month following the month in which the payment was required,
				there shall be added to the tax a penalty of five percent (5%) of the tax due
				for each month or fraction of a month that the tax remains unpaid. The penalty
				shall not exceed thirty-five percent (35%) of the tax due. No penalty will be
				assessed if the failure to pay is due to reasonable cause and not to willful
				neglect. If a penalty is assessed for failure to pay tax, no penalty will be
				assessed for failure to file a return.
E. A penalty of $50.00 per return will be
				assessed when a taxpayer continues to disregard previous notification by the
				Director that the taxpayer has failed to include required information on a
				return, included false information on a return, failed to file a return, or
				failed to notify the Director that the taxpayer is no longer required to file a
				return. No penalty will be assessed if the taxpayer's failure is due to
				reasonable cause and not willful neglect.
F. If a taxpayer that is required to pay tax
				by electronic funds transfer fails to do so on or before the due date, there
				shall be added to the tax a penalty of five percent (5%) of the tax
				due.
G. If a taxpayer that is
				required to make prepayment of sales tax fails to do so on or before the due
				date of each prepayment, there shall be added to the tax a penalty of five
				percent (5%) of the amount of the prepayment due. A taxpayer who elects to pay
				eighty percent (80%) of its tax liability for the month on or before the
				twenty-fourth (24th) of the month, and fails to do so will not be assessed the
				five percent (5%) penalty if the taxpayer proves that more than twenty percent
				(20%) of its tax liability arose from sales that occurred after the
				twenty-fourth and before the last day of the month.
Ark. Code Ann. §
											26-18-208