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26-18-406. Judicial relief.
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. A text match is a research starting point; applicability is not established.
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Stable record: arkansas_code:legal_authorities:26-18-406
Source file: gov.ar.code.title.26.odt
Pages: Not recorded – Not recorded
Passage SHA-256: 1376db56ef56fc0b8ee30588ad7e8a4f6b31c6b23ed6c4d0476be505433f7e4d
Source location: content.xml paragraph 2371
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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 shall be tried de novo.
(2) An appeal will lie from the circuit court to the Supreme Court, as in other cases provided by law.
(3) A presumption of correctness or weight of authority shall not attach to a final assessment or determination of the secretary in a trial de novo or an appeal under this section.
(d)(1) The methods provided in this section shall be the sole alternative methods for seeking relief from a written decision of the secretary establishing a deficiency in tax or disallowing a claim for refund.
(2) An injunction shall not issue to stay proceedings for assessment or collection of taxes levied under state tax law.
(e)(1) In a court proceeding under this section, the:
(A) Prevailing party may be awarded a judgment for court costs; and
(B) Taxpayer may be awarded reasonable attorney's fees if the:
(i) Secretary revised a decision of the hearing officer in favor of the taxpayer under § 26-18-405;
(ii) Taxpayer is the prevailing party in an action for judicial relief from the determination of the secretary under this section; and
(iii) Court finds that the secretary's revision was without a reasonable basis in law and fact.
(2) A judgment of court costs entered by the court in favor of either party or of attorney's fees awarded in favor of the taxpayer shall be treated, for purposes of this chapter, in the same manner as an overpayment or deficiency of tax, except that interest or penalty shall not be allowed or assessed with respect to a judgment for court costs or attorney's fees.
(f) If a taxpayer pays the tax, penalty, and interest assessed under § 26-18-403 and does not request administrative relief according to § 26-18-404, then:
(1) The taxpayer may seek judicial relief from the assessment only if the taxpayer files suit in circuit court within one (1) year from the date of payment of the assessment; and
(2) The provisions of § 26-18-507 shall not apply to the payments.
(g) The Arkansas Rules of Civil Procedure and § 16-56-126 concerning nonsuit and commencement of new actions apply to appeals under this section.
Cross-references
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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. The source passage cites 26-18-403. 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
26-18-405. Hearing on proposed assessments.
(a)(1) The Secretary of the Department of Finance and Administration shall appoint a hearing officer to review all written protests submitted by taxpayers, hold all hearings, and make written findings as to the applicability of the proposed assessment or the denial of the claim for refund.
(2) Decisions of the hearing officer shall be final unless revised by the secretary.
(3) The hearings on written and oral protests and determinations made by the hearing officer shall not be subject to the provisions of the Arkansas Administrative Procedure Act, § 25-15-201 et seq.
(b) The secretary may appoint one (1) or more hearing officers, but the persons occupying these appointments shall not contemporaneously with the holding of these appointments have any other administrative duties within the Revenue Division of the Department of Finance and Administration.
(c) The actual hearing on the written protest shall be held in any city in which the Revenue Division of the Department of Finance and Administration maintains a field audit district office or in such other city as the secretary shall, in his or her discretion, designate.
(d)(1)(A) All written protests filed with the secretary shall be delivered promptly to the hearing officer.
(B) The hearing officer shall set the time and place for the hearing on a written protest and shall give the taxpayer reasonable notice of the hearing.
(C) If it is not possible for the hearing officer to hold a hearing and issue a decision on a protest of a proposed assessment within one hundred eighty (180) days after the taxpayer files a written protest for reasons that the hearing officer determines are beyond the taxpayer's control, the secretary shall waive the interest for the period
Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-18-405
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 26-18-405. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
26-18-507. Claims for refunds of overpayments.
(a)(1) Any taxpayer who has paid any state tax to the State of Arkansas in excess of the state taxes lawfully due, subject to the requirements of this chapter, shall be refunded the overpayment of the state tax determined by the Secretary of the Department of Finance and Administration to be erroneously paid upon the filing of an amended return or a verified claim for refund, subject to subsection (e) of this section.
(2) This subsection does not include an action based on Arkansas Constitution, Article 16, § 13.
(b) The claim shall specify:
(1) The name of the taxpayer;
(2) The time when and the period for which the state tax was paid;
(3) The nature and kind of state tax paid;
(4) The amount of the state tax that the taxpayer claimed was erroneously paid;
(5) The grounds upon which a refund is claimed; and
(6) Any other information relative to the payment as may be prescribed by the secretary.
(c) The secretary shall determine what amount of refund, if any, is due as soon as practicable after a claim has been filed, but in no event shall the taxpayer be entitled to file a suit for refund under § 26-18-406 until at least six (6) months have elapsed from the date of the filing of the claim for refund or the secretary has issued a notice of denial of a claim for refund.
(d) Notwithstanding any provisions of the law to the contrary, a taxpayer who acts only as an agent of the state in the collection of any state tax shall be entitled to claim a credit or refund of the state tax only if the taxpayer establishes that he or she has:
(1) Borne the state tax in question;
(2) Repaid the amount of the state tax to the person from whom he or she collected it; or
(3) Obtained the consent of the person to th
Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-18-507
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 26-18-507. This identifies an authority to review, not proof of applicability.