reglab/statecodes huggingface dataset:
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-51-801 - RETURNS BY INDIVIDUALS › Rule 1.26-51-801(a) - Who Should File

Current through Register Vol. 49, No. 6, June, 2024
Every person receiving gross income from Arkansas sources
					 shall file an Arkansas individual income tax return for the tax year such gross
					 income was received with the Revenue Division of the Arkansas Department of
					 Finance and Administration. Arkansas "sources" shall include real or personal
					 property located within Arkansas and business or personal activity carried on
					 within Arkansas. However, gross income received by
nonresident
individuals from entirely "passive" sources within Arkansas is not
					 subject to Arkansas individual income tax and thus need not be reported by such
					 individuals to the Arkansas Department of Finance and Administration. Examples
					 of gross income derived entirely from passive sources would be interest earned
					 on a bank account located within Arkansas or dividends from stocks held by an
					 investment firm located within Arkansas as part of its client's investment
					 portfolio.
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-51-801 - RETURNS BY INDIVIDUALS › Rule 2.26-51-801(a) - Filing Status "4" - Married Filing Separately on the Same Return

Current through Register Vol. 49, No. 6, June, 2024
Married taxpayers who
both
have a net taxable
					 income for the tax year may find that this method of tax computation will
					 provide the greatest reduction in their tax liability over any other filing
					 statuses that are available. The net result will be either a combined refund or
					 a combined tax due. If there is tax due, both spouses will be considered
					 jointly liable for it even though they are filing separately.
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-51-801 - RETURNS BY INDIVIDUALS › Rule 1.26-51-801(c) - Completing and Signing Returns

Current through Register Vol. 49, No. 6, June, 2024
If, for whatever reason, a taxpayer does not complete his
					 or her own Arkansas individual income tax return, the return should be
					 completed by an authorized agent or by a guardian or other court appointed
					 person charged with caring for the taxpayer, the taxpayer's estate, or both. An
					 "authorized agent" may be designated by power of attorney, Will or any other
					 form of authorization made by the taxpayer that is clear and unambiguous and
					 that was made by the taxpayer while of sound mind and without duress or
					 coercion. If the authorized agent is merely a paid tax return preparer hired by
					 the taxpayer,
both
the tax return preparer
and
the
					 taxpayer must sign the return.
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-51-801 - RETURNS BY INDIVIDUALS › Rule 1.26-51-801(d)(1) - Head of Household

Current through Register Vol. 49, No. 6, June, 2024
A taxpayer shall be considered the head of a household if,
					 and only if, the following three conditions are met:
1. The taxpayer is not married at the close
				  of his tax year;
2. The taxpayer is
				  not a "surviving spouse" as defined by IRC Reg. 1.2-2(a); and
3. The taxpayer maintains as his home a
				  household which constitutes (for the tax year at issue)
the principal
				  place of abode
, as a
member
of such household, at least one
				  of the individuals described in IRC Reg. 1.2-2(b)(3)(i) or (ii);
or
The taxpayer maintains, whether or not as his home, a
					 household which constitutes (for the tax year at issue)
the principal
					 place of abode
of at least one of the individuals described in IRC Reg.
					 1.2-2(b)(4).
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-51-801 - RETURNS BY INDIVIDUALS › Rule 1.26-51-801(d)(2) - Surviving Spouse

Current through Register Vol. 49, No. 6, June, 2024
The term "qualifying widow or widower with dependent child"
					 shall mean the same thing as the term "surviving spouse." A surviving spouse's
					 Arkansas individual income tax return
for each of the next two (2) tax
					 years following the tax year in which the other spouse died
shall be
					 treated as a joint return and therefore taxed at the joint return rate if the
					 surviving spouse:
a) Has not remarried
				  at any time before the close of the tax year;
b) "Maintains" (pays more that 50% of the
				  costs of) a household as his or her home which is the principal place of abode
				  of a son or daughter (including adopted or foster children) or a stepson or
				  stepdaughter;
c) Is entitled to a
				  dependency deduction for at least one child; and
d) Was entitled to file a joint return with
				  the deceased spouse for the year of death.
This "surviving spouse" rule does not apply to the
					 tax year in which the spouse died
. A joint return may be filed for a
					 husband and wife (thus using a joint return tax rate) where their tax years
					 start on the same day and end on different days because of the death of either
					 or both. However, if the surviving spouse remarries before the close of his tax
					 year, he cannot file a joint return for himself and his deceased
					 wife.
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-51-801 - RETURNS BY INDIVIDUALS › Rule 1.26-51-801(d)(4) - Dependent Defined

Current through Register Vol. 49, No. 6, June, 2024
A person qualifies as a taxpayer's "dependent" only if all
					 of the following provisions are met:
(a) Relationship test -- the person is
				  *related to the taxpayer or is a member of the taxpayer's household. The person
				  will be considered a member of the taxpayer's household if, for the taxpayer's
entire
tax year, the person had as his
principle place of
				  abode
the home of the taxpayer;
b) The person's gross income does not equal
				  or exceed the exemption amount. However, this gross income test does not apply
				  to a child of the taxpayer who either:
i) has
				  not reached the age of 19 at the end of the calendar year in which the
				  taxpayer's tax year begins; or
ii)
				  is a student who has not reached the age of 24 at the close of the calendar
				  year.
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-51-801 - RETURNS BY INDIVIDUALS › Rule 1.26-51-801(e) - Withholding for Low Income Employees

Current through Register Vol. 49, No. 6, June, 2024
If a person's gross income is not high enough to subject
					 the person to Arkansas' individual income tax, such person must complete and
					 submit to his employer Form AR4ECSP. This form, also known as the employee's
					 special withholding exemption certificate, must be signed and dated by the
					 employee. This form allows an employer, who would normally withhold Arkansas
					 income tax from the wages of such an employee, to refrain from doing
					 so.
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-51-802 - PARTNERSHIP RETURNS › Rule 1.26-51-802(a) - Partnership Returns - Generally

Current through Register Vol. 49, No. 6, June, 2024
For a tax year in which a partnership receives any income
					 from Arkansas sources, a partnership return (AR1050) must be filed on behalf of
					 the partnership and must be signed by at least one (1) of the partners. The
					 partnership return must include the names and addresses of all partners of
					 whatever nature who are entitled to a share of the partnership's income
and
the percentage or amount of each such partner's
					 share.
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-51-802 - PARTNERSHIP RETURNS › Rule 1.26-51-802(b) - Partnership Income From Arkansas Sources

Current through Register Vol. 49, No. 6, June, 2024
All partnership income from activities carried on within
					 Arkansas or from real or personal property located within Arkansas must be
					 allocated to Arkansas.
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-51-803 - FIDUCIARY RETURNS › Rule 1.26-51-803 - Fiduciary Returns - Generally

Current through Register Vol. 49, No. 6, June, 2024
A fiduciary return (AR1002) is used to report the income of
					 an estate or trust. The income received by an estate or trust will be
					 considered attributable to Arkansas when the estate or trust's trustee,
					 administrator, executor or personal representative
is a resident of
					 Arkansas
. Likewise, the income received by an estate or trust shall be
					 attributable to Arkansas when the estate or trust is physically located within
					 Arkansas. As such, a fiduciary return must be filed by every resident (AR1002)
					 and nonresident (AR1002NR) fiduciary under the following circumstances:
1. Any income of such estate or trust is
				  currently distributable.
2. The tax
				  is payable by the beneficiaries or by the grantor.
3. The net income of such estate or trust is
				  $3,000.00 or over.
4. Any
				  beneficiary of such estate or trust is a nonresident.
Pursuant to ACA
					 26-51-201(b) and
					 (c), a limited exemption from Arkansas income
					 tax has been established for
resident
fiduciaries under the
					 following circumstances:
1. The trust
				  or estate was created by a nonresident individual; or
2. The beneficiary of a trust is a
				  nonresident.
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-51-806 - FILING RETURNS - TIME AND PLACE - FORMS › Rule 1.26-51-806(a) - Due Date and What Constitutes Filing

Current through Register Vol. 49, No. 6, June, 2024
The due date for the filing of Arkansas individual income
					 tax returns shall be as follows:
(a)
				  May 15 for tax years based on a calendar year.
b) Four and one-half (41/2) months from the
				  closing date of the period covered for tax years based on a fiscal year.
A tax return is "filed" with the Department at the time and
					 date it is actually received by the Department. However, there is one exception
					 to this rule for tax returns mailed to the Department through the United States
					 Postal Service. ACA
					 26-18-105.
					 This statute states that the postmark date on the envelope containing the tax
					 return (or returns) shall be considered the return's filing date with the
					 Department.
Only
tax returns mailed through the
United
					 States Postal Service
qualify for this filing break. Tax returns sent
					 through private carriers such as United Parcel Service or Federal Express will
					 be considered "filed" when such returns are actually received by the
					 Department. If the due date falls on a Saturday, Sunday or legal holiday for
					 which the Department is closed in observance of, the due date shall be the next
					 working day that the Department is open for business.
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-51-806 - FILING RETURNS - TIME AND PLACE - FORMS › Rule 1.26-51-806(b)(1) - Responsibility for Obtaining and Filing Returns

Current through Register Vol. 49, No. 6, June, 2024
When a taxpayer requests that the Department send the
					 taxpayer a tax return or related form, such as through the mail or via
					 facsimile transmission, the Department must make a good faith effort to comply
					 with all such requests that are
reasonable
, even though the
					 Department has no legal obligation or duty to deliver tax returns or forms to
					 taxpayers via public or private carrier. However, it is ultimately the
taxpayer's responsibility
to obtain, properly complete and file
					 all Arkansas individual income tax returns and related forms required by
					 Arkansas law to be completed and filed. A taxpayer may not avoid responsibility
					 for any tax, penalty or interest properly due the State of Arkansas merely
					 because the Department did not send the taxpayer the appropriate return or
					 forms, even where personnel of the Department advised the taxpayer that such
					 return or forms would be sent by the Department to the
					 taxpayer.
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-51-806 - FILING RETURNS - TIME AND PLACE - FORMS › Rule 1.26-51-806(c) - Signing Returns

Current through Register Vol. 49, No. 6, June, 2024
Every taxpayer filing an Arkansas individual income tax
					 return must sign and date the return. Where a married couple files a joint
					 return or files separately on the same return, both taxpayers must sign the
					 return. Tax returns that have not been signed will not be processed although
					 otherwise complete. If the taxpayer paid someone else to complete the return,
					 the paid preparer must also sign and date the return (in addition to the
					 taxpayer).
Arkansas individual income tax returns that are filed
					 electronically by computer or by telephone must still be signed by the
					 taxpayer. However, the signature can be entered electronically by keystroke or
					 spoken over the telephone for such alternative filing options.
Any taxpayer who files an Arkansas individual income tax
					 return that has been fraudulently prepared is guilty of a Class D felony. ACA
					 26-18-203.
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-51-807 - FILING RETURNS - EXTENSIONS OF TIME › Rule 1.26-51-807(b) - Payment of Tax, Penalty and Interest

Current through Register Vol. 49, No. 6, June, 2024
Although an Arkansas taxpayer receives an extension of
					 time to file his or her Arkansas individual income tax return, this extension
					 does
not
extend to the
payment
of any income tax due
					 the State of Arkansas. A taxpayer should file a "tentative" return in the form
					 of estimated tax voucher #5 on or before the original due date for filing the
					 return (May 15 for calendar year taxpayers) and include with the return payment
					 in full of any tax estimated to be due the State of Arkansas. Interest at the
					 rate of ten percent (10%) per annum will be assessed on all unpaid tax due the
					 State of Arkansas from the original due date for filing the return (May 15 for
					 calendar year taxpayers). A "failure to pay" penalty will also be assessed on
					 all unpaid tax due the State of Arkansas from the original due date for filing
					 the return. However, no "failure to file" penalty will be assessed where the
					 taxpayer has
properly requested
an extension of time to file his
					 or her Arkansas individual income tax return.
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-51-808 - FAILURE TO FILE RETURN OR INCLUDE INCOME › Rule 1.26-51-808(a)&(b) - Taxpayer Required to File Return or Amended Return

Current through Register Vol. 49, No. 6, June, 2024
The Department shall have the authority to
require
a taxpayer to file an Arkansas income tax return or an
					 amended Arkansas income tax return under the following circumstances:
1. The taxpayer has failed to file a return;
				  or
2. The taxpayer has failed,
				  through error, to include items of taxable income in the taxpayer's return;
				  or
3. The taxpayer has
				  intentionally failed to include items of taxable income in the taxpayer's
				  return.
A return or amended return filed under such circumstances
must
include
all
items of income received by the
					 taxpayer during the tax year, whether or not such income is subject to Arkansas
					 individual income tax.
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-51-808 - FAILURE TO FILE RETURN OR INCLUDE INCOME › Rule 1.26-51-808(c) - Penalties, Prosecution, Jeopardy Assessments

Current through Register Vol. 49, No. 6, June, 2024
Even though a taxpayer fully complies with a request by
					 the Department to file a return or amended return, any penalties justifiable
					 under ACA
					 26-18-208
					 may be assessed against the taxpayer. Moreover, in the case of intentional
					 failure to disclose taxable income (i.e. fraud), a referral to the appropriate
					 Prosecuting Attorney for criminal prosecution may be appropriate. ACA
					 26-18-201
					 et seq.
Where a taxpayer refuses to promptly comply with a request
					 by the Department to properly prepare and file a return or amended return, the
					 Department may make a jeopardy assessment against the taxpayer as set forth in
					 ACA
					 26-18-402.
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-51-809 - RECEIPTS FOR TAXES › Rule 1.26-51-809 - Receipts - Generally

Current through Register Vol. 49, No. 6, June, 2024
The Department shall provide, upon request, to any taxpayer
					 making a tax payment a written or printed receipt containing the following
					 information:
1. The amount
				  paid;
2. The account to which the
				  payment will be credited; and
3. If
				  applicable, the installment period to which the payment will be
				  credited.
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-51-810 - FORMS FOR TAX PRACTITIONERS › Rule 1.26-51-810 - Fee Charged by Department

Current through Register Vol. 49, No. 6, June, 2024
The Department may charge a postage fee for blank tax
					 returns and related forms mailed to any person, partnership, limited liability
					 company or corporation who prepare tax returns for a fee.
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-51-811 - INFORMATION AT SOURCE AS TO RECIPIENTS OF INCOME › Rule 1.26-51-811(a) - Recipients of Income - Generally

Current through Register Vol. 49, No. 6, June, 2024
Every individual, fiduciary and business entity of
					 whatever type or nature (payor) located within Arkansas shall report to the
					 Department, on Form 1099, all payments totaling $2,500.00 or more made to
					 taxpayers (payees, such as individuals, fiduciaries or business entities)
					 during the tax year.
Such payments shall include:
interest; rent;
					 salaries; wages; premiums; annuities; compensation; remuneration; gains;
					 profits and other income. When such payments are not properly reported to the
					 Department, the Department can disallow the payments as deductions or credits
					 in computing the payor's Arkansas income tax liability. Moreover, the
					 Department can require payors making payments as described above to withhold
					 Arkansas income tax from such payments and remit the tax directly to the
					 Department. ACA
					 26-51-812;
					 ACA
					 26-51-901 et
					 seq.
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-51-813 - CONFIDENTIALITY OF REPORTS AND RETURNS › Rule 1.26-51-813 - Confidentiality - Generally

Current through Register Vol. 49, No. 6, June, 2024
All employees of the Department
must
keep
all
taxpayer information strictly confidential. This includes:
					 information gained through an audit or investigation conducted by the State of
					 Arkansas, any other state or the U.S. Government; information from any tax
					 returns, reports, forms or other related documents filed with the State of
					 Arkansas, any other state or the U.S. Government; and tax-related information
					 provided in any other form from any other source whatsoever. The provisions of
					 ACA
					 26-51-813
					 shall complement and be read in conjunction with those of ACA
					 26-18-303,
					 which is the confidentiality statute of the Arkansas Tax Procedure Act. The
					 provisions of both ACA
					 26-18-303
					 and ACA
					 26-51-813
					 shall be strictly interpreted to ensure the highest degree of taxpayer
					 confidentiality.
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-51-813 - CONFIDENTIALITY OF REPORTS AND RETURNS › Rule 2.26-51-813 - Confidentiality - Exceptions

Current through Register Vol. 49, No. 6, June, 2024
Taxpayer information may be disclosed, but only to the
					 extent necessary, under the following circumstances:
1. The taxpayer and the Department are
				  involved in a proceeding, either administratively or judicially, involving any
				  issue related to Arkansas' individual income tax;
2. To income tax officials of any other state
				  or the U.S. Government if:
i) The taxpayer is
				  required by the law of the other state or the U.S. Government to file an income
				  tax return; and
ii) The other state
				  or the U.S. Government have substantially the same confidentiality laws as the
				  State of Arkansas.
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-51-815 - COMPUTING CAPITAL GAINS AND LOSSES › Rule 1.26-51-815(a) - Computing Capital Gains and Losses - Generally

Current through Register Vol. 49, No. 6, June, 2024
With respect to capital gains and losses realized or
					 incurred during tax years beginning after December 31, 1990, the following
					 Internal Revenue Code and Regulations shall apply:
* IRC Sections 1211 through 1237, and 1239 through 1257 as
					 in effect on January 1, 1997.
* Corresponding regulations promulgated by the Secretary of
					 the Treasury as in effect on January 1, 1997.
* Any other provisions of the Internal Revenue Code and
					 Regulations necessary for interpreting and implementing the above cited code
					 sections as in effect on January 1, 1997.
However, the provisions of 1.
					 26-51-815(a)
					 shall not apply to C corporations as defined in IRC Sec. 1361 as in effect on
					 January 1, 1997.
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-51-815 - COMPUTING CAPITAL GAINS AND LOSSES › Rule 1.26-51-815(b) - Computation of Tax

Current through Register Vol. 49, No. 6, June, 2024
If a taxpayer has a net capital gain for a given tax year,
					 the tax on such capital gain shall not exceed the sum of:
1. A tax computed at the rates and in the
				  same manner as if this subsection had not been enacted on
the greater
				  of
:
A) Taxable income reduced by the
				  amount of the net capital gain;
or
B)
				  The amount of taxable income taxed at a rate below six percent (6%);
PLUS
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-51-815 - COMPUTING CAPITAL GAINS AND LOSSES › Rule 1.26-51-815(c) - Exclusion of Small Business Stock from Gain

Current through Register Vol. 49, No. 6, June, 2024
IRC Sec. 1202, as in effect on January 1, 1995 regarding
					 the exclusion from gain of certain small business stock, is adopted for the
					 purpose of computing Arkansas income tax liability.
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-51-902 - DEFINITIONS › Rule 1.26-51-902(1) - Agricultural Labor - Federal Definition

Current through Register Vol. 49, No. 6, June, 2024
"Agricultural labor" shall be as defined in IRC Sec.
					 3121(g), as in effect on January 1, 1993.
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-51-902 - DEFINITIONS › Rule 2.26-51-902(1) - Agricultural Labor - When Nonagricultural Labor is also Performed

Current through Register Vol. 49, No. 6, June, 2024
Where an employee performs duties consisting of both
					 agricultural and nonagricultural labor, the agricultural exemption applies only
					 if the employee in question performs services that constitute valid
					 agricultural labor for
at least
one-half ( 1/2) of any pay period
					 (a period of not more that 31 consecutive days). When this requirement has been
					 met, all wages paid by the employer to the employee for the given pay period
					 will be exempt from withholding.
See
Ragland v. Pittman Garden
					 Center, 293 Ark. 533, 739 S.W.2d 671 (1987).
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-51-902 - DEFINITIONS › Rule 3.26-51-902(1) - Agricultural Labor - Landscaping Services

Current through Register Vol. 49, No. 6, June, 2024
Landscaping services do not fall within the scope of
					 agricultural labor. Services performed at nurseries or garden centers operated
					 primarily for the raising of horticultural commodities do fall within the scope
					 of agricultural labor. However, a nursery or garden center employee is no
					 longer considered to be engaged in agricultural labor at the moment the
					 employee leaves the nursery or garden center to engage in nonagricultural
					 labor.
See
Ragland v. Pittman Garden Center, 299 Ark. 293, 772
					 S.W.2d 331 (1989).
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-51-902 - DEFINITIONS › Rule 1.26-51-902(6) - Employer

Current through Register Vol. 49, No. 6, June, 2024
An "employer" is
any
employer, whether a
					 resident or *nonresident of Arkansas, who:
(a) Is carrying on business activity within
				  Arkansas;
or
b)
				  Is receiving income from sources located within Arkansas;
and
c) Has control, either directly or through an
				  officer or agent, over the payment of wages to an individual for services
				  performed by such individual
within Arkansas
.
* Nonresident employers include both transient employers
					 and those employers carrying on business activity within Arkansas or receiving
					 income from sources within Arkansas on a long-term (nontransient)
					 basis.
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-51-902 - DEFINITIONS › Rule 1.26-51-902(12) - *Transient Employer

Current through Register Vol. 49, No. 6, June, 2024
A "transient employer" is an employer who:
a) Is not a resident of Arkansas;
and
b)
Temporarily
engages in any activity within Arkansas for the
				  purpose of producing income for the employer. A temporary engagement is one
				  which, as of any date, cannot reasonably be expected to continue for a period
				  of eighteen (18) consecutive months.
*
See Also
1.
					 26-51-908(b)
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-51-902 - DEFINITIONS › Rule 1.26-51-902(13)(B) - Wages for Agricultural Labor - Cash Remuneration

Current through Register Vol. 49, No. 6, June, 2024
Pursuant to IRC Sec. 3121(a),
cash
remuneration paid by an employer in any calendar year to an employee for
					 agricultural labor shall not be considered "wages" subject to withholding
unless
:
(a) The cash
				  remuneration paid in such year by the employer to the employee for such labor
				  is $150.00 or more;
or
b) The employer's expenditures for
				  agricultural labor in such year equal or exceed $2,500.00. However, this
				  provision (b) shall not apply in determining whether remuneration paid to an
				  employee constitutes "wages"
if
such employee:
i) Is employed as a hand harvest laborer and
				  is paid on a piece rate basis in an operation which has been, and is
				  customarily and generally recognized as having been, paid on a piece rate basis
				  in the region of employment;
ii)
				  Commutes daily from his permanent residence to the farm on which he is
				  employed; and
iii) Has been
				  employed in agriculture less than 13 weeks during the prior calendar
				  year.
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-51-902 - DEFINITIONS › Rule 2.26-51-902(13)(B) - Wages for Agricultural Labor - Noncash Remuneration

Current through Register Vol. 49, No. 6, June, 2024
Remuneration paid in any medium
other than
					 cash
for agricultural labor shall not be considered wages, regardless of
					 the amount or quantity paid.
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-51-902 - DEFINITIONS › Rule 1.26-51-902(13)(B)(i) & (ii) - Withholding of Income Tax on Agricultural Wages

Current through Register Vol. 49, No. 6, June, 2024
When cash remuneration paid for agricultural labor is
					 considered "wages" according to the criteria set forth above, if the
					 agricultural employer pays wages to four (4) or more employees during any
					 reporting period, the employer shall be required to withhold Arkansas income
					 taxes for any such reporting periods. However, if the agricultural employer
					 pays wages to three (3) or fewer employees during a reporting period, the
					 employer shall have the
option
to withhold Arkansas income taxes
					 for any such reporting periods if the employer so chooses.
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-51-908 - FILING OF EMPLOYER'S WITHHOLDING RETURN AND PAYMENT OF INCOME TAXES WITHHELD › Rule 1.26-51-908(a) - Filing Schedule for Employer's Withholding Returns

Current through Register Vol. 49, No. 6, June, 2024
All
employers, resident or nonresident, are
					 initially set-up as monthly filers when their registration for a withholding
					 account (via Form AR4ER) is first processed. Monthly withholding returns are to
					 be filed on or before the fifteenth (15th) day of each month and should include
					 with the return payment in full of all income tax withheld for the preceding
					 (i.e. prior) month.
All employers will remain on a monthly filing schedule
					 regardless of the amount of Arkansas income tax they are withholding. At the
					 request of the employer or on the Department's own initiative, the Department
					 can change the employer's filing schedule from once each month to once each
					 year if the
full
amount of Arkansas income tax that the employer
					 was required to withhold for the preceding (i.e. prior) year was $199.00 or
					 less. Yearly withholding returns must be filed on or before January 31 for the
					 preceding year.
Withholding returns are no longer processed on a quarterly
					 basis by the Department. Therefore, employers should not attempt to file
					 withholding returns on a quarterly basis.
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-51-908 - FILING OF EMPLOYER'S WITHHOLDING RETURN AND PAYMENT OF INCOME TAXES WITHHELD › Rule 1.26-51-908(b) - *Transient Employer

Current through Register Vol. 49, No. 6, June, 2024
All transient employers shall complete and submit a
					 withholding return (AR941M) to the Individual Income Tax Section of the Revenue
					 Division of the Department of Finance and Administration once each month. The
					 full amount of Arkansas income tax required to be deducted and withheld from
					 the employee's wages for the preceding (i.e. prior) calendar month shall be
					 submitted along with the withholding return for such month.
Transient employers shall file their withholding returns
					 (along with payment in full of all income tax due) with the Department on or
					 before the last day of the month following the month for which the income taxes
					 were deducted and withheld from the wages of the employees.
*
See Also
1.
					 26-51-902(12)
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-51-908 - FILING OF EMPLOYER'S WITHHOLDING RETURN AND PAYMENT OF INCOME TAXES WITHHELD › Rule 1.26-51-908(c) - Employers Engaged in a Seasonal Business

Current through Register Vol. 49, No. 6, June, 2024
All employers engaged in any business which is seasonal in
					 nature shall nonetheless be required to complete and file a withholding return
					 on or before the
last
day of each month for wages paid to
					 employees the preceding (i.e. prior) calendar month. The employer shall remit
					 payment in full of all income taxes required to be deducted and withheld along
					 with the withholding return.
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-51-908 - FILING OF EMPLOYER'S WITHHOLDING RETURN AND PAYMENT OF INCOME TAXES WITHHELD › Rule 1.26-51-908(g) - Filing Requirements when Employer no Longer Withholds Income Tax

Current through Register Vol. 49, No. 6, June, 2024
An employer on a monthly or annual filing schedule who
correctly
no longer withholds and remits income tax to the
					 Department must continue to file monthly or annual reports until such time that
					 the employer gives the Department written notice that the employer no longer
					 has any employees or has no employees based within or regularly working within
					 Arkansas.
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-51-909 - ANNUAL WITHHOLDING STATEMENT › Rule 1.26-51-909(a) - Filing Requirement

Current through Register Vol. 49, No. 6, June, 2024
Every employer shall file with the Director an annual
					 statement of withholding (Federal Form W-2) for each employee along with an
					 Arkansas Annual Withholding Tax Reconciliation (Form AR-3MAR).
Every employer shall also file with the Director a copy of
					 all Federal Form 1099's issued during the year. The 1099's must be accompanied
					 by a copy of the Federal Transmittal(Federal Form 1096).
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › 1998-1 - Comprehensive Corporation Income Tax Regulations › Rule 2-8-101 - BIOTECHNOLOGY DEVELOPMENT AND RESEARCH › Rule 1.2-8-101 - Biotechnology Tax Credit

Current through Register Vol. 49, No. 6, June, 2024
Biotechnology tax credits are issued and verified through
					 the Department's Tax Credits/Special Refunds Section. Original certificates
					 must be obtained from the Arkansas Economic Development Commission and must be
					 attached to the corporation income tax return in order to claim the credit.
					 Credit is limited to the first $50,000 of income tax liability arising during
					 each year and fifty percent (50%) of any remaining income tax liability for
					 each year. Unused tax credits may be carried forward for up to nine (9)
					 consecutive tax years following the tax year in which the credit originated. A
					 taxpayer who receives a biotechnology tax credit for the purchase of machinery
					 or equipment shall not be entitled to claim any other state or local tax
					 credits or deductions based on the purchase of such machinery or equipment
					 (other than the deduction for normal depreciation). This tax credit shall be
					 available for tax years beginning on 01/01/97 and thereafter.
Example:
The tax liability before credits of ABC Corporation for
					 1997 is $81,273. The ABC Corporation has available a $75,000 biotechnology tax
					 credit. The 1997 tax liability for ABC Corporation is computed as
					 follows:
Click here
					 to view image
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › 1998-1 - Comprehensive Corporation Income Tax Regulations › Rule 15-4-1224 - COUNTY AND REGIONAL INDUSTRIAL DEVELOPMENT CORPORATION ACT › Rule 1.15-4-1224 - Income Tax Credit

Current through Register Vol. 49, No. 6, June, 2024
The original purchaser of common stock in a County or
					 Regional Industrial Development Corporation shall be entitled to a credit
					 against any Arkansas income tax liability that the purchaser may have. The
					 credit shall be determined as follows:
Example:
Click here
					 to view image
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › 1998-1 - Comprehensive Corporation Income Tax Regulations › Rule 15-4-1224 - COUNTY AND REGIONAL INDUSTRIAL DEVELOPMENT CORPORATION ACT › 2.15-4-1224 - Gain or Loss Upon Sale or Disposition of Common Stock

Current through Register Vol. 49, No. 6, June, 2024
The basis for computation of gain or loss upon the sale of
					 the common stock in a County or Regional Industrial Development Corporation
					 shall be reduced by the amount of the income tax credits previously deducted.
					 The basis shall be further reduced by ten percent (10%) of the original
					 purchase price if the stock is disposed of within five years (5) of its
					 original purchase date.
Example:
Click here
					 to view image
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › 1998-1 - Comprehensive Corporation Income Tax Regulations › Rule 15-4-1704 - ARKANSAS ENTERPRISE ZONE ACT › Rule 1.15-4-1704 - Income Tax Credits

Current through Register Vol. 49, No. 6, June, 2024
Enterprise zone credits are issued and verified through the
					 Department's Tax Credits/Special Refunds Section. Original certificates must be
					 attached to the Corporation income tax return in order to claim the tax
					 credits. The tax credits must be used for the tax year in which the increase in
					 average annual employment occurred. The tax credits should be used to the full
					 extent of the computed tax for the initial and succeeding tax years. Any unused
					 credits may be carried forward for up to four (4) consecutive tax years
					 following the tax year in which the credit originated if approved prior to
					 03/25/97 or for up to nine (9) consecutive tax years following the tax year in
					 which the credit originated if approved on or after 03/25/97. If more than one
					 (1) credit is involved, the taxpayer should specify in which order the credits
					 should be claimed. If the taxpayer does not specify the order, the credits will
					 be applied in the order which will be of best advantage to the taxpayer.
Regional headquarters and steel service centers (SIC 5051)
					 may qualify for the tax incentive credits. These taxpayers must employ fifty
					 (50) or more new permanent employees and must not make retail sales to the
					 general public.
Under prior law, new employees were required to be Arkansas
					 residents. The law now requires only that a new employee be an Arkansas
					 taxpayer during the tax year in which the credit was issued.
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › 1998-1 - Comprehensive Corporation Income Tax Regulations › Rule 15-5-1301 - AFFORDABLE NEIGHBORHOOD HOUSING › Rule 1.15-5-1301 - Housing Tax Credit

Current through Register Vol. 49, No. 6, June, 2024
This tax credit applies to any taxpayer who provides
					 affordable housing assistance that has been qualified by the Arkansas
					 Development Finance Authority ("ADFA"). The ADFA establishes the requirements
					 for this credit and issues a certificate of eligibility for tax credit. This
					 certificate must be attached to the taxpayer's income tax return upon which the
					 tax credit is first taken.
The allowable credit cannot exceed thirty (30%) percent of
					 the total amount invested in affordable housing assistance activities by the
					 taxpayer. If not fully used in the year established, this credit may be carried
					 forward for up to five (5) consecutive tax years following the tax year in
					 which the credit originated.
The affordable neighborhood housing tax credit applies to
					 tax years ending after August 1, 1997 and is available on a first come, first
					 served basis until a $750,000 per year limit for all taxpayers is
					 reached.
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › 1998-1 - Comprehensive Corporation Income Tax Regulations › Rule 26-18-208 - TAX PENALTIES › 1.26-18-208(6)(A) - Estimated Tax Penalty

Current through Register Vol. 49, No. 6, June, 2024
Payments made with an extension of time to file corporation
					 income tax returns do not constitute estimated tax payments. Estimated tax
					 payments must be made by the required due dates.
Underestimate penalty is calculated by multiplying the
					 underpayment for each quarter by .00027397 and then multiplying that figure by
					 the number of days underpaid. There can be several calculations for each
					 quarter when partial payments are received.
Example 1:
Corporation "A" FEIN 99-9999991, is a calendar year filer.
					 The tax liability for tax year 12/94 was $40,000 and for tax year 12/95, the
					 tax liability was $20,000. "A" has a $2,000 estimate credit carryforward from
					 tax year 12/94. "A" filed an extension payment of $3,000 on 5/15/96. The 12/95
					 income tax return was filed 9/15/96. "A" paid estimated tax payments for tax
					 year 12/95 as follows:
PAYMENT DATE
VOUCHER NO.
AMOUNT
05/15/95
1
$3,000
01/15/96
4
10,000
The required estimated tax due per quarter is $4,500
					 ($20,000 X 90% ÷ 4). $500 of the 1st quarter overpayment ($3,000 + $2,000 -
					 $4,500) is applied to the 2nd quarter estimate. The $10,000 4th quarter payment
					 will be applied to the 2nd, 3rd and 4th quarter required estimates as
					 follows:
(1) $4,000 to the 2nd
				  quarter,
(2) $4,500 to the 3rd
				  quarter, and
(3) $1,500 to the 4th
				  quarter. The amount subject to underestimate penalty and the penalty
				  calculations are as follows:
Click here
					 to view image
* 5-15-96 is the original income tax return due
					 date.
Example 2:
Corporation "B", FEIN 99-9999992, is a fiscal year filer.
					 The tax liability for tax year 3/94 was $15,010 and for tax year 3/95, the tax
					 liability was $16,644. Corporation "B" filed an extension payment of $7,940 on
					 8/15/95. The income tax return was filed on 12/15/95. "B" paid estimated tax
					 payments for tax year 3/95 as follows:
PAYMENT DATE
VOUCHER NO.
AMOUNT
08/15/94
1
$3,000
12/15/94
4
$10,000
The required estimated tax due per quarter is $3,745
					 ($16,644 X 90% ÷ 4). The $10,000 4th quarter overpayment will be applied to the
					 1st, 2nd and 3rd quarters as follows:
(1) $745 to the 1st quarter,
(2) $3,745 to the 2nd quarter,
(3) $3,745 to the 3rd quarter, and
(4) $1,765 to the 4th quarter. The amount
				  subject to underestimate penalty and the penalty calculations are as follows:
Click here
					 to view image
* 8-15-95 is the original income tax return due
					 date.
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › 1998-1 - Comprehensive Corporation Income Tax Regulations › Rule 26-18-208 - TAX PENALTIES › 1.26-18-208(6)(B)(iii) - Estimated Tax Penalty

Current through Register Vol. 49, No. 6, June, 2024
The estimated tax penalty will not be imposed if estimated
					 tax payments equal or exceed the amount of tax liability shown on the
					 taxpayer's return for the preceding tax year. The taxpayer's preceding tax year
					 must have been for a period of twelve (12) months. "Tax liability shown on the
					 taxpayer's return" means total tax, as reported, less business and incentive
					 credits.
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › 1998-1 - Comprehensive Corporation Income Tax Regulations › Rule 26-18-306 - REFUND AND CREDIT CLAIMS › 1.26-18-306(i)(1) - Claims for a Refund or Credit

Current through Register Vol. 49, No. 6, June, 2024
A verified claim for an income tax credit or refund may be
					 submitted on an amended return (AR1100CTX) or on the taxpayer's letterhead as
					 set forth in 1.
					 26-18-507(a).
					 Upon request by the Department, it shall be the burden of the taxpayer to prove
					 that all claimed prior income tax payments that are reflected on an amended
					 return or verified claim for credit or refund were made. The Department will
					 accept legible copies of the front and back of canceled checks as proof of
					 prior payments. Where the taxpayer paid the tax at issue via Electronic Funds
					 Transfer ("EFT"), documentation from the taxpayer's bank will be necessary to
					 establish proof of payment.