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Summary of 2021 Arkansas Tax Procedure Legislation

By Dover Dixon Horne PLLC on May 19, 2021
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Act 65 establishes a system of review of administrative rules whereby the Legislative Council reexamines agency rules and considers which rules to extend or repeal.

Act 143 requires tax preparers that file their clients’ federal income tax returns electronically to also file clients’ Arkansas returns electronically. Effective for tax years beginning on or after January 1, 2021. Act 145 allows DFA to waive the filing fees for certificates of indebtedness issued for failure to pay state taxes.

Act 260 requires a state entity to report incidents compromising data security to the legislative auditor within five (5) business days of the state entity learning of the incident.

Act 373 amends the definition of “claimant agency” entitled to offset delinquent tax collections against a state income tax refund to include the State Insurance Department and the Self-Insured Fidelity Bond Program.

Act 483 makes technical revisions to the provisions of Title 26 of the Arkansas Code concerning taxation.

Act 586 establishes the Independent Tax Appeals Commission! It is intended to be a neutral panel of experienced tax professionals to hear and resolve taxpayer disputes with the Department of Finance and Administration (DFA). The three commissioners will be appointed by July 1, 2022, and the commission will begin taking cases January 1, 2023.

Act 593 changes provisions governing tax appeals and hearings to conform language to the Independent Tax Appeals Commission Act.

Act 718 requires DFA to authorize the offset of a tax refund toward a tax delinquency when there has been a final assessment issued, even if a certificate of indebtedness has not been issued yet.

Act 732 makes various changes to exceptions to the rules prohibiting disclosure of taxpayer information and designates the Secretary of DFA as the official custodian of certain taxpayer records.

Act 876 gives the Bureau of Legislative Research (BLR) direct access to state tax records and other revenue information and prohibits disclosure of tax records and revenue information to anyone unauthorized. This will allow BLR to better advise the General Assembly about potential impacts of tax legislation.

  • Posted in:
    Tax
  • Blog:
    Arkansas Tax & Incentives Update
  • Organization:
    Dover Dixon Horne PLLC
  • Article: View Original Source

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