reglab/statecodes huggingface dataset:
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › GROSS RECEIPTS TAX RULES › Rule 006.05.08-004-GR-9.17 - SERVICES SUBJECT TO TAX - INITIAL INSTALLATION

Current through Register Vol. 49, No. 6, June, 2024
A. The initial installation of any of the
				following is taxable, unless one of the exemptions listed below, applies:
1. Motor vehicles;
2. Aircraft;
3. Farm machinery and implements;
4. Motors of all kinds;
5. Tires and batteries;
6. Boats;
7. Electrical appliances and
				devices;
8. Furniture;
9. Rugs;
10. Flooring;
11. Upholstery;
12. Household appliances;
13. Televisions and radios;
14. Jewelry;
15. Watches and clocks;
16. Engineering instruments;
17. Medical and surgical
				instruments;
18. Machinery of all
				kinds;
19. Bicycles;
20. Offices machines and equipment;
21. Shoes;
22. Tin and sheetmetal;
23. Mechanical tools; and
24. Shop equipment.
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › GROSS RECEIPTS TAX RULES › Rule 006.05.08-004-GR-9.18 - LABOR ASSOCIATED WITH THE INITIAL INSTALLATION, ALTERATION, ADDITION, OR REPLACEMENT OF MACHINERY AND EQUIPMENT THAT QUALIFIES FOR AN EXEMPTION FROM TAX AS MACHINERY AND EQUIPMENT USED IN MANUFACTURING

Current through Register Vol. 49, No. 6, June, 2024
A. The service of initial installation,
				alteration, addition, or replacement of machinery and equipment that qualifies
				for the exemption from the gross receipts or compensating use tax provided by
				Ark. Code Ann. §§
									26-52-402
				and
				26-53-114
				(machinery and equipment used directly in manufacturing) is not subject to
				gross receipts or use tax.
B. Labor
				services that are exempt from tax as provided in this rule are exempt without
				regard to who performs and bills for the labor services.
C. Labor performed in connection with the
				replacement of exempt manufacturing machinery is exempt from tax only if the
				machinery being replaced meets all of the requirements for exemption required
				by Ark. Code Ann. §§
									26-52-402
				and 26-53114, including the requirement that substantially all of the machinery
				required to perform an essential function is replaced.
D. The service of repair of exempt machinery
				is taxable.
Ark. Code Ann. §
											26-52-402
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › GROSS RECEIPTS TAX RULES › Rule 006.05.08-004-GR-10.1 - MAILING, WORD PROCESSING, AND DATA PROCESSING SERVICES

Current through Register Vol. 49, No. 6, June, 2024
A. The gross receipts or gross proceeds
				derived from sales of the following services are not subject to the tax:
1. The addressing, through the use of a
				computer or otherwise, of material to be mailed, with names and addresses
				furnished by the customer or provided by the seller for the customer.
2. The production, through the use of a
				computer or otherwise, of labels to be affixed to material to be mailed, where
				the names and addresses are furnished by the customer or provided by the seller
				for the customer. The tax will not apply regardless of whether the seller
				affixes the labels to the material to be mailed.
3. The production of multiple copies of
				letters, manuscripts, or other documents using word processing or data
				processing equipment.
a. The term "multiple
				copies" includes form letters produced with a slight variation that
				personalizes essentially the same letter.
b. The term "word processing equipment or
				data processing equipment" means computer hardware and software used to
				produce, create, edit and print original documents. The term "word processing
				equipment or data processing equipment" does not include photocopying or
				duplication equipment.
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › GROSS RECEIPTS TAX RULES › Rule 006.05.08-004-GR-30.1 - EXEMPTIONS FROM TAX - REPAIR OF COMMERCIAL JET AIRCRAFT

Current through Register Vol. 49, No. 6, June, 2024
A. The gross receipts or gross proceeds
				derived from the alteration, addition, cleaning, refinishing, replacement or
				repair of commercial jet aircraft, commercial jet aircraft components or
				commercial jet aircraft subcomponents are exempt from sales tax.
B. The gross receipts or gross proceeds
				derived from the sale of parts or other tangible personal property which is
				incorporated into or becomes a part of commercial jet aircraft, commercial jet
				aircraft components or commercial jet aircraft subcomponents are exempt from
				sales or use tax.
C. "Commercial
				jet aircraft" means any commercial, military, private, or other turbine or
				turbojet aircraft having a certified maximum take-off weight of more than
				12,500 pounds.
Ark. Code Ann. §
											26-52-401(28)
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › SPECIAL EXCISE TAX RULES

Current through Register Vol. 49, No. 6, June, 2024
Pursuant to the authority granted by Ark. Code Ann. §§
								26-18-301 and
				26-63-104,
				the Director of the Arkansas Department of Finance and Administration
				promulgates the following rules for the purpose of facilitating the compliance,
				administration, enforcement, and collection of the Arkansas Special Excise
				Taxes, Ark. Code Ann. §
								26-63-101 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 26-18-208 - ADDITIONAL PENALTIES AND TAX › Rule 1.26-18-208(3)(B) - Failure to File and Failure to Pay Penalties

Current through Register Vol. 49, No. 6, June, 2024
For individual income tax purposes only, failure to file
					 penalties of five percent (5%) per month and failure to pay penalties of one
					 percent (1%) per month are assessed simultaneously, not to exceed thirty-five
					 percent (35%).
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-18-208 - ADDITIONAL PENALTIES AND TAX › Rule 1.26-18-208(6) - Underestimated Tax Penalty

Current through Register Vol. 49, No. 6, June, 2024
The underestimated tax penalty shall not be imposed if the
					 tax liability for the current tax year is one thousand dollars ($250.00) or
					 less.
The underestimated tax penalty shall not be imposed if the
					 current year payments made equal or exceed ninety percent (90%) of the current
					 year tax liability or one hundred percent (100%) of the preceding tax year
					 liability and the preceding tax year was twelve (12) months.
The underestimated tax penalty is calculated by multiplying
					 the underpayment for each quarter by .00027397, then multiplying this product
					 by the number of days from the date the estimate payment was due to:
a) the date estimate was paid, or
b) the date the return is filed, or
c) the due date of the return,
whichever is earlier
.
For purposes of this regulation, payments include taxes
					 withheld from the taxpayer's wages and estimated tax payments. Estimated tax
					 payments must be made by the required due dates. Payments made with an
					 extension of time to file individual income tax returns do not constitute
					 estimated tax payments.
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-18-306 - TIME LIMITATIONS FOR ASSESSMENTS, COLLECTION, REFUNDS AND PROSECUTION › Rule 1.26-18-306(b) - Adjustment to Federal Return - Duty to Amend State Return

Current through Register Vol. 49, No. 6, June, 2024
For any given tax year, if the IRS changes and corrects the
					 taxable income, taxable estate and/or income tax due on an Arkansas taxpayer's
					 federal income tax return, the taxpayer must file an amended Arkansas income
					 tax return within thirty (30) days of receiving such notice from the
					 IRS.
This provision applies to any taxpayer who is required to
					 file an Arkansas individual income tax return, whether the individual is a
					 resident, part-year resident or nonresident 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 26-18-306 - TIME LIMITATIONS FOR ASSESSMENTS, COLLECTION, REFUNDS AND PROSECUTION › Rule 1.26-18-306(i)(2) - Time Limitation on Refunds and "Verified Claim" for Credit

Current through Register Vol. 49, No. 6, June, 2024
In the case of a taxpayer who fails to file a return,
					 underreports his income by twenty five percent (25%) or more, or fails to
					 notify the director of any change or correction by the Internal Revenue
					 Service, no amended return or verified claim for credit or refund will be
					 allowed after 3 years from the date the original return or the notification of
					 change by the Internal Revenue Service was originally due.
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-18-404 - TAXPAYER RELIEF › Rule 1.26-18-404(c) - Protest of Proposed Assessment

Current through Register Vol. 49, No. 6, June, 2024
A taxpayer cannot file a protest based upon a notice of tax
					 adjustment, but must wait until a proposed assessment is received.
The taxpayer must protest a proposed assessment in writing,
					 within thirty (30) days of service of the notice. The protest must include the
					 taxpayer's grounds for protesting the assessment. If the thirtieth (30th) day
					 falls on a Saturday, Sunday or legal holiday, the next succeeding day which is
					 not a Saturday, Sunday, or legal holiday would be within the prescribed time
					 period in which to file the protest.
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-18-405 - HEARING ON PROPOSED ASSESSMENTS › Rule 1.26-18-405(d)(4)(A) - Hearing on Proposed Assessments

Current through Register Vol. 49, No. 6, June, 2024
If a proposed assessment is sustained, in whole or part by
					 the Office of Hearing and Appeals, the taxpayer may request in writing, within
					 twenty (20) days of the mailing of the decision, that the director revise the
					 decision of the hearing officer. If the director refuses to make a revision,
					 then a final assessment shall be made upon the final determination of the
					 hearing officer.
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-18-406 - JUDICIAL RELIEF › Rule 1.26-18-406(a) - Judicial Relief

Current through Register Vol. 49, No. 6, June, 2024
A taxpayer may seek further relief from the final decision
					 of the hearing officer or the director on a final assessment of a tax
					 deficiency through the courts within thirty (30) days of the issuance of the
					 final assessment. The taxpayer may pay the full deficiency, interest and
					 penalty under protest and file suit for recovery within one (1) year from the
					 date of payment, or file a bond with the director in double the amount of the
					 tax deficiency and file suit within thirty (30) days thereafter to stay the
					 effect of the director's determination. A taxpayer's failure to file suit,
					 diligently prosecute the suit, or pay any tax deficiency and court costs, shall
					 result in the forfeiture of the bond in the amount of the assessment and court
					 costs.
Jurisdiction for suit shall be in Pulaski County Chancery
					 Court or the Chancery court of the county in which the taxpayer resides or has
					 his principle place of 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 26-18-505 - EXTENSION OF TIME FOR FILING RETURNS › Rule 1.26-18-505(a)(3)(A) - First Ninety Day Extension

Current through Register Vol. 49, No. 6, June, 2024
Taxpayers may request a ninety (90) day state extension
					 past the original due date of the state individual income tax return. This
					 request shall be made on or before the original due date of the return. Upon
					 receipt, the extension will be approved or denied and a copy sent back to the
					 taxpayer. If approved, attach a copy of the extension to the return when filed.
					 An approved extension only extends the filing due date and does not postpone
					 the due date of payment of taxes. If any tax due is reflected on the filed
					 return and is not paid on or before the original due date, interest as provided
					 by law sill be assessed from the original due date until the tax is paid.
					 Failure to file or pay penalties under ACA
					 26-18-208
					 will apply to any tax not paid on or before the extended
					 date.
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-18-505 - EXTENSION OF TIME FOR FILING RETURNS › Rule 1.26-18-505(a)(3)(B) - Second Ninety Day Extension

Current through Register Vol. 49, No. 6, June, 2024
The director may issue a second ninety (90) day extension
					 for extraordinary circumstances. This additional extension will run
					 consecutively with the first extension. This request shall be made on or before
					 the expiration of the first ninety (90) day extended due
					 date.
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-18-505 - EXTENSION OF TIME FOR FILING RETURNS › Rule 1.26-18-505(a)(4) - Federal Extension Recognized

Current through Register Vol. 49, No. 6, June, 2024
The director will recognize an automatic extension afforded
					 the taxpayer by the Internal Revenue Service. This extension will be granted to
					 the Federal extended due date. The taxpayer must attach a copy of the request
					 to the state return in order to receive the automatic
					 extension.
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-18-506 - PRESERVATION OF RECORDS BY TAXPAYER › Rule 1.26-18-506(b) - Type of Records and Time Period

Current through Register Vol. 49, No. 6, June, 2024
The taxpayer is required to keep and maintain all records
					 that are necessary to reconcile the amount of tax due or to prove the accuracy
					 of any return. These records must be preserved for six (6) years after a return
					 is filed and are subject to examination by the director at any reasonable
					 time.
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-18-506 - PRESERVATION OF RECORDS BY TAXPAYER › Rule 1.26-18-506(d) - Insufficient Records and Estimated Assessment

Current through Register Vol. 49, No. 6, June, 2024
If the taxpayer cannot produce sufficient records to
					 reconcile the amount of tax due or to prove the accuracy of any return, the
					 director may make an estimated assessment based upon information available to
					 him. The burden of proof of refuting this assessment is upon 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 26-18-507 - CLAIMS FOR REFUNDS OF OVERPAYMENTS › Rule 1.26-18-507(a) - Grounds for Refund Claim

Current through Register Vol. 49, No. 6, June, 2024
A taxpayer who has paid any tax to the State of Arkansas
					 through error of fact, computation or mistake or law, in excess of the taxes
					 lawfully due, shall be refunded the overpayment of the tax determined by the
					 director to be erroneously paid upon the filing of an amended return or a
					 verified claim for refund. These claims shall be subjected to certain
					 requirements and other information relative to the overpayment.
If a refund is determined, the director shall certify that
					 the claim is to be paid to the taxpayer as provided by law or credited against
					 taxes due or to become due.
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-18-507 - CLAIMS FOR REFUNDS OF OVERPAYMENTS › Rule 1.26-18-507(i)(1) - Form and Procedure for Refund Claims

Current through Register Vol. 49, No. 6, June, 2024
A "verified claim" for credit or a refund may be the
					 signed copy of a previously filed return accompanied by a letter of explanation
					 as to the reason the refund or credit request is being made. Upon request by
					 the Department, it shall be the burden of the taxpayer to prove that all
					 claimed prior income tax or estimated 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.
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-18-507 - CLAIMS FOR REFUNDS OF OVERPAYMENTS › Rule 1.26-18-507(e)(2) - Judicial Relief

Current through Register Vol. 49, No. 6, June, 2024
The taxpayer may seek judicial relief, according to ACA
					 26-18-406, if the
					 written decision of the director denies the claim in whole or part.
A taxpayer must file suit within ninety (90) days after the
					 issuance of the director's written decision. The suit may be filed in Pulaski
					 County Chancery Court or the chancery court of the county in which the taxpayer
					 resides or has his principal place of business. A written decision of the
					 director on a refund becomes final and not subject to suit ninety-one (91) days
					 after it is issued.
If the director fails to issue a written decision, and has
					 not acted on the claim after at least six (6) months have expired from the date
					 of the filing of the claim for refund, the taxpayer may file suit in either
					 Pulaski County Chancery Court or the county in which he
					 lives.
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-51-102 - DEFINITIONS › Rule 1.26-51-102(8) - Administrator

Current through Register Vol. 49, No. 6, June, 2024
A person appointed by the court to administer (that is,
					 manage or take charge of) the estate, including liabilities, of a
					 decedent.
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-51-102 - DEFINITIONS › Rule 1.26-51-102 - Charitable Trust

Current through Register Vol. 49, No. 6, June, 2024
A trust designed for the benefit of a class or the public
					 generally. Charitable trusts are essentially different from private trusts in
					 that the beneficiaries of a charitable trust are uncertain. A charitable
					 remainder trust consists of assets which are paid over to the trust
after
the expiration of a life estate or intermediate estates and
					 designated for charitable purposes.
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-51-102 - DEFINITIONS › Rule 1.26-51-102(5) - Corporate Characteristics

Current through Register Vol. 49, No. 6, June, 2024
Whether an organization (including an unincorporated entity
					 like a partnership, LLC, or trust) will be taxed as a corporation depends on
					 how many of these corporate characteristics it has:
* associates,
* an objective to carry on a business and divide the gain
					 from it,
* continuity of life,
* centralized management,
* liability limited to the organization's assets,
					 and
* free transferability of interests. IRC Reg.
					 301.7701-2(a)(1)
If an entity has more corporate than noncorporate
					 characteristics, it is treated as a corporation (association taxable as a
					 corporation). IRC Reg. 301.7701-2(a)(3)
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-51-102 - DEFINITIONS › Rule 2.26-51-102 - Estate

Current through Register Vol. 49, No. 6, June, 2024
The degree, quantity, nature and extent of interest which
					 a person has in real estate and all other personal property of whatever kind.
					 With respect to a decedent, the total property of whatever kind that is owned
					 by a decedent prior to the distribution of that property in accordance with the
					 terms of a will, or, when there is no will, by the laws of inheritance in the
					 state of domicile of the decedent.
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-51-102 - DEFINITIONS › Rule 3.26-51-102 - Estate Taxability

Current through Register Vol. 49, No. 6, June, 2024
Estate Tax Extension -- AY321E
Estate Tax Return -- AY321
Fiduciary Return -- AR1002
Estate income is normally taxed to the estate
itself
if retained by the estate, or to the distributee, if
					 distributed. Thus, if the fiduciary (that is, executor or administrator) passes
					 on income to the distributee, the estate deducts the distributed income which
					 then becomes taxable to the distributee. What would be gross income in the
					 hands of an individual is gross income when received by an estate -- dividends,
					 interest, rents, royalties, capital gains, ordinary gains, etc. IRC Reg.
					 1.641(a)-2. Gross income includes income accumulated or held for future
					 distribution under the terms of a will or trust, income that is currently
					 distributable, income received by a deceased's estate during administration or
					 settlement, and income that, in the fiduciary's discretion, may be either
					 accumulated or distributed. IRC Sec. 641(a). Deductions and credits allowed to
					 estates are basically those allowed to individuals. An estate's status as a
					 separate taxpayer exists only during the period of administration and
					 settlement of the estate. IRC Sec. 641(a)(3). This period starts with the
					 deceased's death and generally extends for the entire time actually required to
					 perform the ordinary duties of administration, such as collecting assets and
					 paying legacies and debts. If estate administration is unduly prolonged, the
					 IRS considers the estate terminated for tax purposes after expiration of a
					 reasonable period (considering the estate's assets) for performance by the
					 executor of all the duties of administration. IRC Reg.
					 1.641(b)-3(a).
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-51-102 - DEFINITIONS › Rule 2.26-51-102(8) - Executor

Current through Register Vol. 49, No. 6, June, 2024
A person appointed by a testator to carry out the
					 directions and requests in his will, and to dispose of the property according
					 to his testamentary provisions after his death. The executor would also be
					 responsible for disposing of the estate's debts and other
					 liabilities.
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-51-102 - DEFINITIONS › Rule 3.26-51-102(8) - Fiduciary

Current through Register Vol. 49, No. 6, June, 2024
Fiduciary Return -- AR1002
Extension of Time -- AR1055
A person having a duty, created by his undertaking, to act
					 primarily for another's benefit in matters connected with such undertaking. A
					 fiduciary relationship is considered one of trust and confidence. A fiduciary
					 has a legal responsibility to act in the beneficiary's (or beneficiaries') best
					 interest. The term "fiduciary" means a guardian, trustee, executor,
					 administrator, receiver, conservator, or any person acting in any fiduciary
					 capacity for any other person. IRC Sec. 7701(a)(6). A trustee, for example,
					 possesses a fiduciary responsibility to the beneficiaries of a trust to follow
					 the terms of the trust and the requirements of applicable state
					 law.
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-51-102 - DEFINITIONS › Rule 4.26-51-102 - Grantor Trust

Current through Register Vol. 49, No. 6, June, 2024
A trust whereby the grantor retains control over the
					 income or corpus (trust property) or both,
to such an extent
that
					 the grantor will be treated as the owner of the property and its income for
					 income tax purposes. The general result is that the income from a grantor trust
					 is taxable to the grantor, as "owner" of the trust, and not to the fiduciary.
					 In determining whether a trust is a grantor trust, the grantor's degree of
					 control over the trust must be analyzed.
If a grantor is considered to be the owner of the
entire
trust, the grantor computes his own personal income tax by
					 taking into account all trust income, deductions and credits as though the
					 trust did not exist. However, where a grantor is treated as owner solely
					 because of his interest in trust
income
, the grantor takes into
					 account only his share of trust items that would be reported by a current
					 income beneficiary. IRC Reg. 1.671-3.
The grantor of a trust is treated as its "owner" and is
					 generally taxed on its income if:
a)
				  The grantor reserves the power to take back title to (that is, revoke) trust
				  funds for himself
where
the grantor can exercise this power alone,
				  or it can be exercised only by another who is regarded as a nonadverse party or
				  it can be exercised by both the grantor and nonadverse party
				  together;
*b) The trust income is
				  distributed actually or constructively to the grantor or the grantor's
				  spouse;
*c) The trust income is
				  held or accumulated for future distribution to the grantor or the grantor's
				  spouse;
*d) The trust income is
				  applied to pay premiums on life insurance policies taken out on the life of the
				  grantor or the grantor's spouse.
See
IRC Sec. 671 et seq.
*The income is not taxable to the grantor if the
					 application of the income to any of these purposes requires the approval of an
					 adverse party (such as a beneficiary).
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-51-102 - DEFINITIONS › Rule 5.26-51-102 - Irrevocable Trust

Current through Register Vol. 49, No. 6, June, 2024
A trust which the settlor may not revoke after it has been
					 created.
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-51-102 - DEFINITIONS › Rule 6.26-51-102 - Limited Liability Company

Current through Register Vol. 49, No. 6, June, 2024
Limited Liability Companies (LLC's) are owned and in some
					 cases managed by members who are not personally liable for the LLC's debts or
					 obligations. The IRS may classify an LLC as a partnership if it lacks a
					 preponderance of "corporate characteristics" (see definition), resulting in the
					 flow-through of tax attributes to the LLC's members under the partnership tax
					 rules. In Arkansas, LLC's are created and governed pursuant to the Small
					 Business Entity Tax Pass Through Act, ACA
					 4-32-101 et seq. An LLC can
					 be created by one or more persons by filing Articles of Organization with the
					 Arkansas Secretary of State. Property may be acquired, held and conveyed in the
					 name of the LLC and such property would belong to the LLC, not its members.
					 Pursuant to ACA
					 4-32-1313, every LLC
					 having two (2) or more members must file an income tax return for each taxable
					 year as required for every partnership by ACA
					 26-51-802.
					 The income and expenses of every LLC having
only
one (1) member
					 must be reported on the member's 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 26-51-102 - DEFINITIONS › Rule 1.26-51-102(4) - Limited Partnership

Current through Register Vol. 49, No. 6, June, 2024
A limited partnership is a partnership with two classes of
					 partners: general partners, who may participate in the management of the
					 partnership's business and who have unlimited liability for the partnership's
					 obligations; and limited partners, who may not participate in management, and
					 whose liability is limited to the amount of their capital
					 contribution.
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-51-102 - DEFINITIONS › Rule 2.26-51-102(4) - Partnership

Current through Register Vol. 49, No. 6, June, 2024
Partnership Return -- AR1050
Extension of Time -- AR1055
A "partnership" includes a syndicate, group, pool, joint
					 venture or other unincorporated organization through, or by means of which, any
					 business, financial operation or venture is carried on if it is not, within the
					 meaning of the IRC, a corporation, trust or estate. IRC Sec. 761(a). A
					 partnership exists when two or more persons join in carrying on a trade or
					 business, with each person contributing either money, property, labor or skill.
					 The partnership agreement doesn't have to be written, it can be oral. IRC Sec.
					 761(c); Reg. 1.761-1(c). A joint undertaking merely to share expenses isn't a
					 partnership. IRC Reg. 1.761-1(a). Partnerships are treated as a conduit or
					 "pass-through entity" and are, therefore, not subject to taxation. The various
					 items of partnership income, gains and losses, etc. flow through to the
					 individual partners and are reported on their individual income tax returns.
					 Moreover, every domestic or foreign partnership doing business within Arkansas
					 or which has received income from sources within Arkansas (regardless of the
					 amount), shall file an Arkansas partnership 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 26-51-102 - DEFINITIONS › Rule 3.26-51-102(4) - Publicly Traded Partnership (PTP)

Current through Register Vol. 49, No. 6, June, 2024
A publicly traded partnership (PTP) is taxable as a
					 corporation. IRC Sec. 7704(a). A partnership is a publicly traded partnership
					 if interests in the partnership either:
(1) are traded on an established securities
				  market, or
(2) are readily
				  tradable on a secondary market or its substantial equivalent. IRC Sec. 7704(b).
				  However, a publicly traded partnership won't be treated as a corporation if,
				  for each tax year beginning after 1987, at least 90% of its gross income is
				  specified passive-type income, and certain other requirements are met. IRC Sec.
				  7704(c). Certain existing partnerships that were publicly traded partnerships
				  on December 17, 1987, won't be treated as corporations until tax years
				  beginning after 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 26-51-102 - DEFINITIONS › Rule 1.26-51-102(9) - Resident

Current through Register Vol. 49, No. 6, June, 2024
Any natural person domiciled in the State of Arkansas
or
any other person who maintains a permanent place of abode
					 within Arkansas and spends in the aggregate more than six (6) months of the tax
					 year 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 26-51-102 - DEFINITIONS › Rule 7.26-51-102 - Revocable Trust

Current through Register Vol. 49, No. 6, June, 2024
A trust in which the settlor (that is, grantor or creator
					 of the trust) reserves the right to revoke the trust. The settlor would be
					 considered to be the "owner" of such a trust. Therefore, revocable trusts may
					 be treated as grantor trusts under certain circumstances. IRC Sec. 671 et seq.;
					 Reg. 1.676(a).
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-51-102 - DEFINITIONS › Rule 8.26-51-102 - Trust

Current through Register Vol. 49, No. 6, June, 2024
Any arrangement whereby property is transferred with the
					 intention that it be administered by a trustee for anothers benefit. A trust
					 can be created for any purpose which is not illegal and which is not against
					 public policy. The essential elements of a trust are a designated beneficiary
					 and trustee, a fund or other property sufficiently identified to enable title
					 to pass to the trustee, and actual delivery to the trustee with the intention
					 of passing title to the trustee. A fiduciary relationship exists between the
					 trustee and beneficiary.
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-51-102 - DEFINITIONS › Rule 9.26-51-102 - Trust Taxability

Current through Register Vol. 49, No. 6, June, 2024
Fiduciary Return -- AR1002
Extension of Time -- AR1055
Trust income is normally taxed to the trust
itself
if retained by the trust, or to the beneficiary, if
					 distributed. Thus, if the fiduciary (that is, trustee) passes on income to the
					 beneficiary, the trust deducts the distributed income which then becomes
					 taxable to the beneficiary. What would be gross income in the hands of an
					 individual is gross income when received by a trust -- dividends, interest,
					 rents, royalties, capital gains, ordinary gains, etc. IRC Reg. 1.641(a)-2.
					 Gross income includes income accumulated or held for future distribution under
					 the terms of a trust, income that is currently distributable, and income that,
					 in the fiduciary's discretion, may be either accumulated or distributed. IRC
					 Sec. 641(a). A "trust" is taxed as a corporation if it has been created or used
					 during the tax period to carry on a business and it has corporate
					 characteristics such as centralized management, continuity of existence,
					 limited liability, etc. IRC Reg. 301.7701-4(b). Deductions and credits allowed
					 to trusts are basically those allowed to individuals. When a trust terminates,
					 it ends as a separate tax entity and no longer reports gross income or claims
					 deductions, credits, etc. IRC Reg. 1.641(b)-3(d). Though the duration of a
					 trust may depend on the occurrence of a particular event under the trust
					 instrument, e.g., the life beneficiary reaching a specified age, for tax
					 purposes the trust will nevertheless continue for a reasonable period beyond
					 this time to allow for the orderly completion of administration. IRC Reg.
					 1.641(b)-3(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 26-51-102 - DEFINITIONS › Rule 4.26-51-102(8) - Trustee

Current through Register Vol. 49, No. 6, June, 2024
Person who holds legal title to property in trust for the
					 benefit of another person or people (that is, the beneficiaries). A trustee is
					 one who is appointed, or required by law, to execute a trust.
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-51-202 - NONRESIDENTS › Rule 1.26-51-202(a) - Income Producing Property

Current through Register Vol. 49, No. 6, June, 2024
A nonresident individual, partnership, trust or estate who
					 earns income from property (real property or tangible personal property)
					 located within Arkansas or from a business, trade or occupation carried on
					 within Arkansas shall pay Arkansas income tax at the rates set forth in ACA
					 26-51-201.
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-51-202 - NONRESIDENTS › Rule 2.26-51-202(a) - Income Producing Property - Intangible

Current through Register Vol. 49, No. 6, June, 2024
Income derived by a nonresident from
intangible
personal property located within Arkansas is not
					 subject to Arkansas income tax. For example, the interest income earned on a
					 savings account with a bank located in Arkansas by a nonresident account holder
					 would not be subject to Arkansas 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 26-51-202 - NONRESIDENTS › Rule 1.26-51-202(b)(1) - Nonresident Generally

Current through Register Vol. 49, No. 6, June, 2024
A nonresident who earns income attributable to Arkansas
					 must timely file an Arkansas income tax return and remit with the return the
					 full amount of Arkansas income tax due. The filing of an Arkansas income tax
					 return and the payment of Arkansas income tax by a nonresident shall be done
					 without regard to the income tax laws of the nonresident's resident
					 state.
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-51-202 - NONRESIDENTS › Rule 1.26-51-202(d) - Income from Trust or Estate

Current through Register Vol. 49, No. 6, June, 2024
A nonresident beneficiary of a trust or estate administered
					 by a resident trustee, executor or administrator shall not be subject to
					 Arkansas income tax
unless
the beneficiary's income has been
					 derived by the trust or estate from:
a) Any interest in real property (real
				  estate) located within Arkansas, including but not limited to the following:
				  lease and rental income; income from crops, timber, mining and other land uses;
				  and the
gain
from any sale of such real property.
b) The use of tangible personal property
				  located within Arkansas, including any
gain
realized from the sale
				  thereof.
c) Any unincorporated
				  business located within Arkansas, such as an association, sole proprietorship,
				  partnership and limited liability company (LLC).
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-51-202 - NONRESIDENTS › Rule 1.26-51-202(c) - Allocation of Income to Arkansas Sources

Current through Register Vol. 49, No. 6, June, 2024
Where a nonresident individual is paid a salary, lump sum
					 payment or some other form of payment which encompasses work performed both
					 inside and outside of Arkansas, Arkansas income tax should be paid only on that
					 portion of the individual's income that can be reasonably
allocated
to work performed in 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 26-51-203 - FIDUCIARIES › Rule 1.26-51-203 - Fiduciaries - Generally

Current through Register Vol. 49, No. 6, June, 2024
Arkansas income tax shall be levied against and paid by
					 resident fiduciaries on the
net income
of:
(a) Estates and trusts which has not been
				  distributed (or become distributable) to beneficiaries during the tax
				  year;
b) deceased individuals
				  received during the tax year who at the time of their death were residents and
				  who died during the tax year without having made a return;
c) resident insolvent or incompetent
				  individuals, whether or not any portion thereof is held for the future use of
				  such individuals, where the fiduciary has complete charge of the net income.
Where there are two (2) or more joint fiduciaries, part of
					 whom are nonresidents of Arkansas, the net income taxable to the fiduciaries
					 shall be allocated equally. The income tax imposed upon a fiduciary shall be a
					 charge against the estate or trust, as opposed to a charge against the
					 fiduciary personally.
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-51-305 - INCOME FROM SALE OF HOME › Rule 1.26-51-305(a) - One Time Exclusion of Gain from Gross Income

Current through Register Vol. 49, No. 6, June, 2024
A taxpayer may make a one time (i.e., once-in-a-lifetime)
					 election to exclude from his gross income the gain realized from the sale or
					 exchange of a home if the following conditions are met:
1 The taxpayer has reached the age of
				  fifty-five (55) before the date of the sale or exchange; and
2 During the five (5) year period
ending
on the date of the sale or exchange, the home was owned and
				  used by the taxpayer as his principal residence for a period of (or periods
				  aggregating) three (3) years or more.
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-51-305 - INCOME FROM SALE OF HOME › Rule 1.26-51-305(b) - One Time Exclusion of Gain from Gross Income - Amount Excludable

Current through Register Vol. 49, No. 6, June, 2024
The maximum amount of gain excludable from gross income
					 under this section is one hundred twenty-five thousand dollars ($125,000.00).
					 In the case of a separate return filed by a married taxpayer, the maximum
					 amount allowable shall be sixty-two thousand five hundred dollars ($62,500.00)
					 for such taxpayer.
The exclusion from gross income provided by this section
					 can only be taken once by a taxpayer after reaching the age of fifty-five (55).
					 After this election has been properly taken by a taxpayer, it shall not be
					 available to the taxpayer again. However, refer to 1.
					 26-51-305(c)
					 regarding revocation of the election.
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-51-305 - INCOME FROM SALE OF HOME › Rule 1.26-51-305(c) - One Time Exclusion of Gain from Gross Income - Example

Current through Register Vol. 49, No. 6, June, 2024
An election to exclude from gross income the gain realized
					 from the sale or exchange of a home may be
made
or
revoked
at any time before the period expires for filing a claim
					 for credit or a refund of income tax paid for the tax year in which the sale or
					 exchange occurred. If the taxpayer making the election or revocation is
					 married, the taxpayer's spouse must join in the election or revocation.
For example, a taxpayer well above the age of fifty-five
					 (55) sold his long-time principal place of residence in 1994. The taxpayer
					 realized fifty-five thousand dollars ($55,000.00) in gain from the sale. In
					 1995, the taxpayer made his once-in-a-lifetime election to exclude the
					 $55,000.00 of gain from his gross income. The taxpayer now wishes to revoke
					 this election, as he anticipates realizing a larger gain on the pending sale of
					 his current residence. Pursuant to ACA
					 26-18-306(i)(1),
					 the taxpayer must file his revocation with the Department within three (3)
					 years from the date his 1994 Arkansas income tax return was filed or two (2)
					 years from the time his 1994 Arkansas income tax due was paid, whichever period
					 expires later.
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-51-305 - INCOME FROM SALE OF HOME › Rule 1.26-51-305(d)(1) - One Time Exclusion of Gain from Gross Income - Husband and Wife

Current through Register Vol. 49, No. 6, June, 2024
With respect to excluding from gross income the gain
					 realized from the sale or exchange of a home,
both
a husband and
					 wife shall be treated as satisfying the age, holding and use requirements of 1.
					 26-51-305(a)
					 if all of the following requirements are met:
(a) The home is held by the husband and wife
				  as either:
i. joint tenants; or
ii. tenants by the entirety;
Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Regulation 1997-4 - Comprehensive Individual Income Tax Regulations › Rule 26-51-306 - COMPENSATION AND BENEFITS FROM MILITARY SERVICE › Rule 1.26-51-306 - Exemption Amount

Current through Register Vol. 49, No. 6, June, 2024
The first $6,000.00 of
service pay
or
service allowances
received by any active duty member of the
					 United States armed services shall be exempt from Arkansas income tax. All such
					 service pay or allowances received above and beyond $6,000.00 for any given tax
					 year shall be subject to Arkansas income tax.