26-18-708. Spousal relief — Definitions.

Arkansas Code — all titles (historical 2020) · legal_authorities

26-18-708. Spousal relief — Definitions.

26-18-708. Spousal relief — Definitions. (a) If a return required under any state tax law has been filed by spouses and the amount of tax due on the return was understated by either the omission of an amount properly includable in the return or by erroneous deductions or credits attributable to one (1) spouse, upon written request, the Secretary of the Department of Finance and Administration may relieve the other spouse of liability for any tax, penalty, or interest attributable to the understatement of tax for that return. (b) In determining whether to grant the relief set out in subsection (a) of this section, the secretary may take into consideration the following factors: (1) Whether the spouse making the request for relief has significantly benefited, either directly or indirectly, from the understatement of tax; (2) Whether the spouse making the request for relief knew or had reason to know of the understatement of tax; and (3) Any other fact or circumstance that would make it inequitable to hold the spouse making the request for relief liable for the deficiency resulting from the understatement of tax. (c) As used in subdivision (b)(2) of this section, “reason to know” means whether a reasonably prudent person would have known that an understatement was made. (d) As used in subsection (a) of this section, “attributable to one (1) spouse” means that the understatement on the return was the result of the actions taken or information supplied by that spouse.

Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-18-708

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.