26-54-107. Computation of tax — Penalty — Relief. [Effective May 1, 2021.]

26-54-107. Computation of tax — Penalty — Relief. [Effective May 1, 2021.] (a) The Secretary of the Department of Finance and Administration from the information reported and from any other information received by him or her bearing upon the subject shall compute the amount of tax of each corporation at the rate or rates provided by this chapter. (b)(1)(A) If the taxpayer fails to comply with the filing and remittance requirements under § 26-54-105(c), the secretary shall assess the corporation a penalty of twenty-five dollars ($25.00) plus interest on the tax and penalty from the date due until paid at the rate of ten percent (10%) per year. (B) However, the franchise tax, penalty, and interest for any tax year shall not exceed two (2) times the corporation's tax owed. (2)(A) Except as provided in subdivision (b)(2)(B) of this section, on or before November 1 of each year, the secretary shall mail notice to the corporation at its last known address stating that the corporation is subject to forfeiture of its corporate charter under § 26-54-111 for the failure to pay corporate franchise tax. (B) For a corporation that has a franchise tax due date after May 1, six (6) months after the franchise tax return due date for the corporation, taking into account any extensions of the due date, the secretary shall mail notice to the corporation at its last known address stating that the corporation is subject to forfeiture of its corporate charter under § 26-54-111 for the failure to pay corporate franchise tax. (c) The secretary or his or her designee may agree to settle or compromise a dispute concerning interest or penalties associated with corporate franchise taxes if the taxpayer: (1) Disputes the proposed amount; or (2) Is insolvent or bankrupt. (d)(1) The secretary may waive any accrued interest or assessed penalties imposed on a taxpayer due to a failure to remit corporate franchise taxes under § 26-54-105(c), if: (A) The taxpayer is reasonably mistaken about the application of this chapter or the computation of the franchise tax to the corporation; or (B) A taxpayer cannot pay the accrued interest or assessed penalties because of the taxpayer's insolvency or bankruptcy. (2) The secretary may waive any fees that a taxpayer owes if the taxpayer desires to dissolve the corporation. (3) If a taxpayer demonstrates that a corporation was not doing business in the state for the period for which penalties and interest are owed under this section, the secretary shall waive the amount due under this section if the taxpayer demonstrates that the taxpayer intends to dissolve the corporation. (e) The Arkansas Tax Procedure Act, § 26-18-101 et seq., so far as is practicable, is applicable to the franchise tax levied under this chapter and to the reporting, remitting, and enforcement of the franchise tax. (f) The secretary shall develop guidelines to assist a taxpayer in resolving a corporate franchise tax dispute.