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26-18-403. Proposed assessments.
Arkansas Code — all titles (historical 2020) · legal_authorities
26-18-403. Proposed assessments.
(a)(1) If any taxpayer fails to file any return as required by any state tax law, the Secretary of the Department of Finance and Administration from any information in his or her possession or obtainable by him or her, may determine the correct amount of tax for the taxable period. If a return has been filed, the secretary shall examine the return and make any audit or investigation that he or she considers necessary.
(2)(A) When a return has not been filed and the secretary determines that there is a tax due for the taxable period or when a return has been filed and the secretary determines that the tax disclosed by the return is less than the tax disclosed by his or her examination, the secretary shall propose the assessment of additional tax plus penalties, as the case may be, and shall give notice of the proposed assessment to the taxpayer.
(B) The notice required under subdivision (a)(2)(A) of this section shall:
(i) Explain the basis for the proposed assessment;
(ii)(a) State that a final assessment, as provided by § 26-18-401, will be made if the taxpayer does not protest the proposed assessment as provided by § 26-18-404.
(b) The taxpayer does not have to protest the proposed assessment to later be entitled to exercise the right to seek a judicial review of the assessment under § 26-18-406; and
(iii) Provide contact information for the taxpayer to use if the taxpayer wants to obtain his or her tax records, including without limitation the facts and evidence supporting the proposed assessment, from the Department of Finance and Administration.
(b) Any demand for additional payment of a state tax which is made as the result of a verification of a mathematical error on the return shall not be deemed to be a proposed
Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-18-403
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. A text match is a research starting point; applicability is not established.
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Stable record: arkansas_code:legal_authorities:26-18-403
Source file: gov.ar.code.title.26.odt
Pages: Not recorded – Not recorded
Passage SHA-256: 85918d4f00a17c323acad77e1106c8d68759e90cdcdf9072f36fa651da31b345
Source location: content.xml paragraph 2276
Stored source content
26-18-403. Proposed assessments.
(a)(1) If any taxpayer fails to file any return as required by any state tax law, the Secretary of the Department of Finance and Administration from any information in his or her possession or obtainable by him or her, may determine the correct amount of tax for the taxable period. If a return has been filed, the secretary shall examine the return and make any audit or investigation that he or she considers necessary.
(2)(A) When a return has not been filed and the secretary determines that there is a tax due for the taxable period or when a return has been filed and the secretary determines that the tax disclosed by the return is less than the tax disclosed by his or her examination, the secretary shall propose the assessment of additional tax plus penalties, as the case may be, and shall give notice of the proposed assessment to the taxpayer.
(B) The notice required under subdivision (a)(2)(A) of this section shall:
(i) Explain the basis for the proposed assessment;
(ii)(a) State that a final assessment, as provided by § 26-18-401, will be made if the taxpayer does not protest the proposed assessment as provided by § 26-18-404.
(b) The taxpayer does not have to protest the proposed assessment to later be entitled to exercise the right to seek a judicial review of the assessment under § 26-18-406; and
(iii) Provide contact information for the taxpayer to use if the taxpayer wants to obtain his or her tax records, including without limitation the facts and evidence supporting the proposed assessment, from the Department of Finance and Administration.
(b) Any demand for additional payment of a state tax which is made as the result of a verification of a mathematical error on the return shall not be deemed to be a proposed assessment under the provisions of this section and shall not be subject to the hearing or appeal provisions of this chapter.
(c)(1) An erroneously paid refund is a tax deficiency and is subject to assessment under this section.
(2)(A) When an erroneously paid refund is issued to a taxpayer, the secretary shall issue a notice of proposed assessment for the amount of the erroneously paid refund, plus interest and any penalty authorized under this chapter.
(B) The notice of proposed assessment to recover an erroneously paid refund shall explain the basis for the proposed assessment and shall inform the taxpayer that a final assessment under § 26-18-401 shall be made if the taxpayer fails to protest the assessment under § 26-18-404.
(3) Sections 26-18-404 — 26-18-406 and 26-18-701 apply to assessments of erroneously paid refunds.
(4) Interest and penalties imposed on a tax deficiency are subject to waiver or abatement in accordance with the procedure established in § 26-18-705(b) if the tax deficiency arose from an error by the department that resulted in the issuance of an erroneously paid refund.
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Arkansas Code — all titles (historical 2020) · legal_authorities
26-18-401. Assessment and collection of taxes generally.
(a)(1) The Secretary of the Department of Finance and Administration shall make the inquiries, determinations, and assessments of all state taxes, including interest, additions to taxes, and assessable penalties, imposed by all state tax laws.
(2) The proposed assessment shall be made by recording the liability of the taxpayer in the office of the secretary in accordance with rules prescribed by the secretary.
(3) Upon request of the taxpayer, the secretary shall furnish the taxpayer a copy of the record of the assessment.
(b)(1) The secretary shall collect all taxes imposed by any state tax law.
(2)(A)(i) The secretary shall issue a final assessment to each taxpayer liable for the unpaid tax.
(ii) The final assessment shall state the amount of the assessment and demand payment within ten (10) days of the assessment.
(iii) The final assessment shall not be issued before the expiration of time for the taxpayer to request an administrative hearing under § 26-18-404.
(B) If the taxpayer has requested administrative relief under § 26-18-404 the final assessment shall be issued according to § 26-18-405.
(C)(i) If the taxpayer has paid the assessment before the time for the issuance of the final assessment, no final assessment shall be issued.
(ii) The taxpayer may seek to recover the payment of the assessment only if § 26-18-403 or § 26-18-406 applies.
(3) Upon receipt of the final assessment from the secretary, the person liable for the tax shall pay the stated amount including any interest, additions to tax, and assessable penalties at the place and time stated in the final assessment.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-18-401
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 26-18-401. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
26-18-404. Taxpayer relief.
(a) Any taxpayer who wishes to seek administrative relief from any proposed assessment of taxes or from a denial of a claim for refund by the Secretary of the Department of Finance and Administration shall follow the procedure provided by this section.
(b)(1) A taxpayer may at his or her option either request the secretary to consider his or her request for relief solely upon written documents furnished by the taxpayer or upon the written documents and any evidence produced by the taxpayer at a hearing.
(2) A taxpayer who requests the secretary to render his or her decision based on written documents is not entitled by law to any other administrative hearing prior to the secretary's rendering of his or her decision and, if necessary, the issuing of a final assessment and demand for payment or issuing of a certificate of indebtedness.
(c)(1) Within sixty (60) days after service of notice of the proposed assessment or denial of a claim for refund, the taxpayer may file with the secretary a written protest under oath, signed by the taxpayer or the taxpayer's authorized agent, setting forth the taxpayer's reasons for opposing the proposed assessment or the denial of a claim for refund.
(2) No administrative relief will be available to a taxpayer who fails to protest or to a taxpayer who fails to request an extension of time to protest a proposed assessment of tax or denial of a claim for refund within the sixty (60) days following the service of notice of the proposed assessment or denial of a claim for refund.
(d) The secretary may, in his or her discretion, extend the time for filing a protest for any period of time not to exceed an additional ninety-day period.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-18-404
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 26-18-404. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
26-18-406. Judicial relief.
(a) After the issuance and service on the taxpayer of the final assessment of a deficiency in tax that is not protested by the taxpayer under § 26-18-403 or a final determination of the hearing officer or the Secretary of the Department of Finance and Administration under § 26-18-405, a taxpayer may seek judicial relief from the final assessment or determination by:
(1)(A) Filing suit for judicial relief from the final assessment or determination within one hundred eighty (180) days of the date of the final assessment or determination.
(B) A taxpayer filing suit under this subdivision (a)(1) shall not be required to pay the state tax, penalties, and interest due before filing suit;
(2) Paying the entire amount of state tax due within one (1) year of the date of the final assessment or determination and filing suit to recover that amount within one (1) year of the date of payment; or
(3) Filing suit to recover assessed tax, penalty, and interest paid prior to the time for issuance of the final assessment within one (1) year of the date of the final determination of the hearing officer or the secretary under § 26-18-405.
(b) A taxpayer may seek judicial relief from a final determination denying a claim for refund by filing suit to recover the amount claimed within one (1) year from the mailing of the denial of the secretary under § 26-18-507, or a final determination of the hearing officer or the secretary under § 26-18-405, whichever is later.
(c)(1) Jurisdiction for a suit to contest a final assessment or determination of the secretary under this section shall be in the Pulaski County Circuit Court or the circuit court of the county in which the taxpayer resides or has his or her principal place of business, where the matter sha
Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-18-406
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 26-18-406. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
26-18-701. Issuance of certificates of indebtedness and execution.
(a)(1)(A)(i) If a taxpayer does not timely and properly pursue his or her remedies seeking relief from a decision of the Secretary of the Department of Finance and Administration and a final assessment is made against the taxpayer, or if the taxpayer fails to pay the deficiency assessed upon notice and demand, then the secretary shall, as soon as practicable thereafter, issue to the circuit clerk of any county of the state a certificate of indebtedness certifying that the person named in the certificate of indebtedness is indebted to the state for the amount of the tax established by the secretary as due.
(ii)(a) The secretary may publish an electronic copy of a certificate of indebtedness issued under subdivision (a)(1)(A)(i) of this section on the official website maintained by the secretary.
(b) The secretary shall remove an electronic copy of a certificate of indebtedness published under subdivision (a)(1)(A)(ii)(a) of this section upon:
(1) Satisfaction of the underlying indebtedness that is the subject of the certificate of indebtedness; and
(2) The issuance of a release of the certificate of indebtedness on the records of the circuit clerk.
(B)(i) If a taxpayer has a delinquent tax liability to the State of Arkansas of less than one thousand dollars ($1,000), the secretary may enter into an agreement with the taxpayer to allow the taxpayer to pay the delinquency in installments.
(ii) The secretary may choose not to issue a certificate of indebtedness during the period of the installment agreement if he or she determines that it is in the best interest of the state.
(C)(i) If a taxpayer has a total delinquent individual income tax liability to the State of Arkansas of less than two
Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-18-701
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 26-18-701. This identifies an authority to review, not proof of applicability.