Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › 1998-1 - Comprehensive Corporation Income Tax Regulations › Rule 26-18-406 - TAXPAYER RELIEF › 1.26-18-406 - Administrative and Judicial Review

Current through Register Vol. 49, No. 6, June, 2024
Taxpayers who receive a Notice of Proposed Assessment or
					 Notice of Proposed Disallowance of a Claim for Refund may obtain an
					 administrative review of the matter by the Department's Office of Hearings and
					 Appeals as set forth in ACA
					 26-18-404. If the
					 taxpayer is not satisfied with the decision issued by the Office of Hearings
					 and Appeals, the taxpayer may request a further review of the matter by the
					 Department's Commissioner of Revenue as set forth in ACA
					 26-18-405(d)(4).
Taxpayers have the option of bypassing administrative
					 review by the Department altogether by taking the disputed assessment or refund
					 claim directly to Chancery Court. When a taxpayer chooses to bypass the
					 administrative review process, the following procedure shall apply with respect
					 to a Notice of Proposed Assessment:
A.
				  The taxpayer should not protest the Notice of Proposed Assessment within the
				  thirty (30) day period following receipt of the notice (
see
ACA
				  26-18-404(c)
				  );
B. A Notice of Final Assessment
				  will be issued by the Department soon after the expiration of the thirty (30)
				  day period (
see
ACA 26-18- 403(a)(2));
C. Within one (1) year from the issue date of
				  the Notice of Final Assessment, the taxpayer must pay the entire amount of tax
				  due for at least one tax period covered by the final assessment. A tax "period"
				  is equivalent to any one (1) tax year (full or short) for which an Arkansas
				  corporation income tax return must be filed. Taxpayers who pay only part of an
				  assessment should be aware that the Department may proceed with collection
				  activities, including the filing of liens as authorized under ACA
				  26-18-701,
				  within thirty (30) days of the issuance of the final assessment, for any
				  assessed, but unpaid taxes, penalties or interest owed by the taxpayer for all
				  remaining tax periods covered by the final assessment;
D. Within one (1) year from the date of the
				  taxpayer's full or partial payment as addressed above, the taxpayer must file
				  its lawsuit with the Pulaski County Chancery Court or the Chancery Court of the
				  county in which the taxpayer has its principal place of business;
E. If the taxpayer has already made its full
				  or partial payment of the assessment before the Notice of Final Assessment is
				  actually issued, the taxpayer shall then have one (1) year from the date the
				  Notice of Final Assessment is eventually issued within which to file its
				  lawsuit.
When a taxpayer chooses to bypass the administrative review
					 process, the following procedure shall apply with respect to a Notice of
					 Proposed Disallowance of a Claim for Refund:
A. The taxpayer should not protest the Notice
				  of Proposed Disallowance of a Claim for Refund within the thirty (30) day
				  period following receipt of the notice (
see
ACA
				  26-18-404(c)
				  );
B. A Notice of Final
				  Disallowance of a Claim for Refund will be issued by the Department soon after
				  the expiration of the thirty (30) day period (
see
ACA
				  26-18-507(e)(2)(C)
				  );
C. Within one (1) year from the
				  issue date of the Notice of Final Disallowance of a Claim for Refund, the
				  taxpayer must file its lawsuit with the Pulaski County Chancery Court or the
				  Chancery Court of the county in which the taxpayer has its principal place of
				  business.