Arkansas Administrative Code

26 CAR § 100-149. Receipts for taxes — Arkansas Code § 26-51-809. The Department of Finance and Administration 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…

26 CAR § 100-150. Forms for tax practitioners — Fee charged by department — Arkansas Code § 26-51-810. The Department of Finance and Administration may charge a postage fee for blank tax returns and related forms mailed to any person, partnership, limited liability company, or co…

26 CAR § 100-151. Information at source as to recipients of income — Arkansas Code § 26-51-811. (a) Recipients of income — Generally — Arkansas Code § 26-51-811(a). (b) Every individual, fiduciary, and business entity of whatever type or nature (payor) located within Arkansas sha…

26 CAR § 100-152. Confidentiality of reports and returns — Arkansas Code § 26-51-813. (a) Confidentiality — Generally — Arkansas Code § 26-51-813. (1) All employees of the Department of Finance and Administration must keep all taxpayer information strictly confidential. (2) This …

26 CAR § 100-153. Computing capital gains and losses — Arkansas Code § 26-51-815. (a) Computing capital gains and losses — Generally — Arkansas Code § 26-51-815(a). (1) With respect to capital gains and losses realized or incurred during tax years beginning after December 31, 199…

26 CAR § 100-154. Definitions — Arkansas Code § 26-51-902. (a) Agricultural labor — Federal definition — Arkansas Code § 26-51-902(1). "Agricultural labor" shall be as defined in I.R.C. § 3121(g), as in effect on January 1, 1993. (b) Agricultural labor — When nonagricultural labo…

26 CAR § 100-155. Filing of employer’s withholding return and payment of income taxes withheld — Arkansas Code § 26-51-908. (a) Filing schedule for employer’s withholding returns — Arkansas Code § 26-51-908. (1)(A) All employers, resident or nonresident, are initially set up as m…

26 CAR § 100-156. Annual withholding statement — Arkansas Code § 26-51-909. (a) Filing requirement — Arkansas Code § 26-51-909(a). (1) Every employer shall file with the Secretary of the Department of Finance and Administration an annual statement of withholding (federal Form W-2…

26 CAR § 100-157. Acts 1997, No. 1309. (a) Tuition savings program — Generally. (1)(A) The Arkansas Tax-Deferred Tuition Savings Program Act of 1997, Arkansas Code § 6-83-101 et seq. [repealed], became effective on August 1, 1997. (B) The Arkansas Tax-Deferred Tuition Savings Pro…

26 CAR § 101-101. Standard mileage rates for income tax purposes. (a) The optional standard mileage rate for use by employees or self-employed individuals in computing the income tax deductible costs of operating passenger automobiles owned by them for business purposes is fifty-…

26 CAR § 102-101. Introduction. (a) Under the direction of the Commissioner of Revenue, the Individual Income Tax Section prescribes the format of Arkansas tax: (1) Returns; (2) Schedules; (3) Statements; and (4) Declarations. (b) Substitute tax forms that are commercially printe…

26 CAR § 102-102. Companies and individuals who must get approval of substitute tax forms. (a)(1) Any company or individual who makes a product that produces substitute tax forms to be filed with the Individual Income Tax Section must receive prior written approval from the Indiv…

26 CAR § 102-103. Guidelines for preparing substitute tax forms. (a)(1) Substitute tax forms must be compatible with the Individual Income Tax Section’s automated processing system. (2) The Individual Income Tax Section must be able to process the substitute tax form in the same …

26 CAR § 102-104. Guidelines for preparing reproduced tax forms. (a) The Individual Income Tax Section will accept reproductions of official forms without prior approval if the reproductions are: (1) Facsimiles of the official form produced by: (A) Photo-offset; (B) Photoengravin…

26 CAR § 102-105. Substitute tax forms approval process. (a)(1) Complete Form AR9101, Letter of Intent to Abide by the Guidelines for the Use of Substitute and Reproduced Tax Forms. (2) Mail Form AR9101 to the Individual Income Tax Section at the address shown on the form. (3) Pr…

26 CAR § 102-106. Individual Income Tax Section procedures. (a) The Individual Income Tax Section will: (1) Coordinate the filing of Form AR9101, Letter of Intent to Abide by the Guidelines for the Use of Substitute and Reproduced Tax Forms; (2) Register the company identificatio…

26 CAR § 102-107. Consequences for not following the guidelines for the use of substitute and reproduced tax forms. If you release forms that fail to follow the guidelines for the use of substitute and reproduced tax forms, the Individual Income Tax Section: (1) Will work with yo…

26 CAR § 102-108. How to contact the Individual Income Tax Section regarding substitute tax forms. Mail all correspondence regarding substitute tax forms and related issues to: Income Tax Processing Tax Forms Design Group P.O. Box 8094 Little Rock, Arkansas 72203-8094 (501) 682-7…

26 CAR § 103-101. Definitions. As used in this part: (1)(A) “Approved political action committee” means any person who: (i) Receives contributions from one (1) or more persons in order to make contributions to candidates; (ii) Does not accept any contribution or cumulative contri…

26 CAR § 103-102. Individual income tax credit for political contributions. (a)(1) A credit against Arkansas individual income tax will be allowed for political contributions made by a taxpayer. (2) The allowable credit will reduce a taxpayer’s income tax liability on a dollar-fo…

26 CAR § 103-103. Prohibition of credit for federal candidates. No credit may be taken for contributions made to a candidate seeking nomination or election to a federal office, including contributions made: (1) Directly to the candidate; or (2) Indirectly through a: (A) Campaign …

26 CAR § 103-104. Applicability. (a) This income tax rule shall apply to all tax years beginning on and after January 1, 1997. (b) The first income tax credits will be available on the 1997 individual income tax returns filed in 1998.

26 CAR § 104-101. Treatment of employee contributions to employment-related retirement plans. (a) For tax years beginning January 1, 2003, and thereafter, individual recipients of benefits from a public or private employment-related retirement system, plan, or program shall be al…

26 CAR § 130-101. Purpose. (a) This part is promulgated to implement and clarify the Arkansas Income Tax Act of 1929, Arkansas Code § 26-51-101 et seq., as amended. (b) All persons affected by or relying upon this part are advised to read it in its entirety, as the meaning of the…

26 CAR § 130-102. Interpretation. In those instances where Arkansas has adopted a section of the Internal Revenue Code as its own law, the regulations promulgated by the United States Department of the Treasury to aid in interpreting the Internal Revenue Code section should be us…

26 CAR § 130-103. Biotechnology development and research — Biotechnology tax credit — Arkansas Code § 2-8-101 [repealed]. (a) Biotechnology tax credits are issued and verified through the Tax Credits/Special Refunds Section of the Department of Finance and Administration. (b) Ori…

26 CAR § 130-104. County and Regional Industrial Development Corporation Act — Arkansas Code § 15-4-1224 [repealed]. (a) Income tax credit — Arkansas Code § 15-4-1224 [repealed]. (1) The original purchaser of common stock in a county or regional industrial development corporation…

26 CAR § 130-105. Arkansas Enterprise Zone Act — Income tax credits — Arkansas Code § 15-4-1704. (a)(1) Enterprise zone credits are issued and verified through the Tax Credits/Special Refunds Section of the Department of Finance and Administration. (2) Original certificates must …

26 CAR § 130-106. Affordable neighborhood housing — Housing tax credit — The Affordable Neighborhood Housing Tax Credit Act of 1997, Arkansas Code § 15-5-1301 et seq. (a)(1) This tax credit applies to any taxpayer that provides affordable housing assistance that has been qualifie…

26 CAR § 130-107. Tax penalties — Arkansas Code § 26-18-208. (a) Estimated tax penalty — Arkansas Code § 26-18-208(6)(A). (1)(A) Payments made with an extension of time to file corporation income tax returns do not constitute estimated tax payments. (B) Estimated tax payments mus…

26 CAR § 130-108. Refund and credit claims — Arkansas Code § 26-18-306. (a) Claims for a refund or credit — Arkansas Code § 26-18-306(i)(1). (b) A verified claim for an income tax credit or refund may be submitted on an amended return (AR1100CTX) or on the taxpayer's letterhead a…

26 CAR § 130-109. Taxpayer relief — Protesting proposed assessments — Arkansas Code § 26-18-404. (a) A taxpayer may file a protest based upon a Notice of Tax Adjustment and need not wait until a Notice of Proposed Assessment is received. (b)(1) Taxpayers must protest a Notice of …

26 CAR § 130-110. Taxpayer relief — Administrative and judicial review — Arkansas Code § 26-18-406. (a)(1) Taxpayers that 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 Offi…

26 CAR § 130-111. Extension of time for filing returns — Arkansas Code § 26-18-505. (a) First ninety-day state extension — Arkansas Code § 26-18-505(a)(3). (1) Taxpayers may request a ninety-day state extension for filing the Arkansas corporation income tax return from the Corpor…

26 CAR § 130-112. Refunds of overpayments — Arkansas Code § 26-18-507. (a) Refund claims – Arkansas Code § 26-18-507(a). (b) A verified claim for a refund of an overpayment of income tax must be filed on a corporation income tax amended return, Form AR1100CTX. (c) In lieu of fili…

26 CAR § 130-113. Corporation income tax definitions — Arkansas Code § 26-51-102. (a) Characteristics of corporations — Arkansas Code § 26-51-102(1). (1) The term "corporation" refers to an organization whose characteristics require it to be classified for purposes of taxation as…

26 CAR § 130-114. Railroads and public utilities — Arkansas Code § 26-51-204. (a) Railroads — Arkansas Code § 26-51-204. (1) Every organization operating a railroad, partly within and partly without the state, shall apportion the net operating income attributable to this state by…

26 CAR § 130-115. Corporation income tax rates — Arkansas Code § 26-51-205. (a) Every domestic and foreign corporation doing business within Arkansas shall pay a graduated income tax on its entire Arkansas net taxable income based on the following tax rate: (1) First three thousa…

26 CAR § 130-116. Exempt organizations — Definitions and guidelines for claiming tax-exempt status — Arkansas Code § 26-51-303. (a) Definitions. As used in this section: (1) "Association" means an entity operating under articles of association, a constitution, or other creating d…

26 CAR § 130-117. Accounting methods — Arkansas Code § 26-51-401. (a) Accounting and recordkeeping requirements — Arkansas Code § 26-51-401(a). (1) Arkansas taxpayers must use the same accounting method as that used for federal income tax purposes. (2)(A) Each taxpayer is require…

26 CAR § 130-118. Basis for determining liability — Arkansas Code § 26-51-402. (a) Tax year – Arkansas Code § 26-51-402(a). (b) No income tax return can be made for a period of more than twelve (12) months, unless the return is based on a fifty-two-week or fifty-three-week tax ye…

26 CAR § 130-119. Gross income generally — Arkansas Code § 26-51-404. (a) Definitions — Arkansas Code § 26-51-404(a)(1). (1) Corporation income tax is imposed upon net income. (2)(A) In the computation of the tax, various classes of income must be considered. (B)(i) "Gross income…

26 CAR § 130-120. Gain or loss — Sales of property — Arkansas Code § 26-51-411. (a) Amount realized on sale of property — Arkansas Code § 26-51-411. (1)(A) The amount realized from the sale or other disposition of property is the sum of any money received plus the fair market val…

26 CAR § 130-121. Gain or loss — Exchange of property — Arkansas Code § 26-51-412. (a) Exchange of property for like property — Arkansas Code § 26-51-412(a). (1) For purposes of corporation income tax, no gain or loss shall be recognized in an exchange of property for like proper…

26 CAR § 130-122. Corporate liquidations — Arkansas Code § 26-51-413. (a) Treatment of amounts distributed in liquidation — Arkansas Code § 26-51-413. (1)(A) Amounts distributed in complete liquidation of a corporation are to be treated as full payment for all stock issued. (B) A…

26 CAR § 130-123. Deferred compensation plans — Savings Incentive Match Plan for Employees (SIMPLE) — Arkansas Code § 26-51-414. (a)(1) Beginning in tax years after 1996, eligible employers may maintain SIMPLE retirement plans to provide a tax-favored means of providing for emplo…

26 CAR § 130-124. Deductions — State income taxes — Arkansas Code § 26-51-416. (a) No deduction will be allowed for Arkansas state income taxes in the computation of net income. (b) All other states' income taxes are deductible.

26 CAR § 130-125. Deductions — Charitable contributions — Arkansas Code § 26-51-419. (a) Arkansas has adopted I.R.C. § 170 as referenced in Arkansas Code § 26-51-419. (b)(1) I.R.C. § 170(d)(2)(B) does not allow unused contributions to increase NOL carry forward. (2) It merely dec…

26 CAR § 130-126. Deductions — Expenses — Arkansas Code § 26-51-423. (a) Travel and entertainment – Arkansas Code § 26-51-423(b). (b) For tax years beginning before January 1, 1995, I.R.C. § 274 as in effect January 1, 1989, shall apply. (c) For tax years beginning on or after Ja…

26 CAR § 130-127. Deductions — Losses — Arkansas Code § 26-51-424. (a) Losses — Arkansas Code § 26-51-424(a)(1). (1) Losses sustained during the tax year, not compensated for by insurance or otherwise, are fully deductible. (2) Losses must usually be evidenced by closed and compl…