26-19-105. Payment by taxpayer — Definition.

26-19-105. Payment by taxpayer — Definition. (a)(1) If the Secretary of the Department of Finance and Administration determines that a taxpayer's monthly liability for the following taxes for any calendar year equals or exceeds twenty thousand dollars ($20,000), the taxpayer shall pay any tax due by electronic funds transfer: (A) Income withholding taxes under the Arkansas Income Tax Withholding Act of 1965, § 26-51-901 et seq.; (B) Gross receipts or sales taxes under the Arkansas Gross Receipts Act of 1941, § 26-52-101 et seq., §§ 26-74-201 — 26-75-705, or the Local Government Bond Act of 1985, § 14-164-301 et seq.; (C) Compensating or use taxes under the Arkansas Compensating Tax Act of 1949, § 26-53-101 et seq.; (D) Privilege taxes; (E) Special alcoholic beverage excise taxes under § 3-7-201; (F) Alcoholic beverage supplemental taxes under §§ 3-9-213 and 3-9-223; and (G) Any other taxes supplemental to the taxes in subdivisions (a)(1)(A)-(F) of this section or required to be collected and remitted in the same manner as sales or use taxes or any other law of this state. (2) If the secretary determines that a taxpayer's monthly liability for the following taxes for any calendar year equals or exceeds twenty thousand dollars ($20,000), the taxpayer shall pay the taxes due by electronic funds transfer: (A) Taxes on tobacco products under the Arkansas Tobacco Products Tax Act of 1977, § 26-57-201 et seq.; (B) Severance taxes under §§ 26-58-101 — 26-58-303; or (C) Taxes on spirituous liquors, wines, malt liquors, and beer under §§ 3-5-101 — 3-7-114. (3) If the secretary determines that a taxpayer's monthly liability for soft drink taxes under the Arkansas Soft Drink Tax Act, § 26-57-901 et seq., for any calendar year equals or exceeds twenty thousand dollars ($20,000), the taxpayer shall pay the taxes due by electronic funds transfer. (b) Monthly liability for taxes shall be determined by the secretary on the basis of average monthly liability for the preceding year. (c)(1) The transfer shall be made no later than the day before the due date for payment of the taxes so that payment of the taxes is received by the secretary on or before the due date for payment of the taxes as required by the laws of this state. (2)(A) A taxpayer who pays income withholding tax by electronic funds transfer or through the state module of the electronic funds transfer payment system of the United States Department of the Treasury in the time and manner required by this section shall not be required to file a monthly withholding return. (B) However, the taxpayer shall annually file a withholding return, setting forth the basis for each monthly payment made during the year by electronic funds transfer or through the state module of the electronic funds transfer payment system of the United States Department of the Treasury, on or before the fifteenth day following the end of each year. (C) The annual withholding return shall be made on such a form and shall include such information as the secretary prescribes. (3) Except as otherwise provided by this subchapter, no taxpayer required to pay tax by electronic funds transfer or who remits tax through the state module of the electronic funds transfer payment system of the United States Department of the Treasury shall be relieved from filing returns or complying with all other requirements of state tax laws. (4)(A) For any withholding tax reporting period, a company or any other business enterprise that provides the service of reporting and remitting withholding tax on the wages paid to Arkansas employees by other employers shall remit all such withholding taxes to the secretary by electronic funds transfer. (B) However, a company or business that provides tax reporting and remitting services shall not be required to remit withholding taxes by electronic funds transfer if the company or business provides those services for fewer than one hundred (100) Arkansas employers. (C) As used in this subdivision (c)(4), “Arkansas employer” means any employer required by Arkansas law to withhold, report, and remit Arkansas income tax on the wages, salary, or other compensation paid to its employees within this state. (5)(A) If the Federal Reserve Bank is closed on a due date that prohibits a taxpayer from being able to make a payment through electronic funds transfer, the payment shall be accepted as timely if made on the next day the Federal Reserve Bank is open. (B) A return filed in conjunction with a remittance that cannot be made due to the closure of the Federal Reserve Bank shall be accepted as timely if filed in conjunction with the payment on the next day the Federal Reserve Bank is open. (d) The following may elect to utilize the state module of the electronic funds transfer payment system of the United States Department of the Treasury to pay monthly income withholding taxes by electronic funds transfer: (1) Any taxpayer who is not required by subdivision (a)(1) of this section to pay income withholding taxes by electronic funds transfer; or (2) Any business that provides tax reporting and remitting services that is not required by subdivision (c)(4) of this section to pay income withholding taxes by electronic funds transfer.