You have the right to full explanation of all actions by any agent of the Commissioner of Revenue both during an audit and during collection activities.
All tax information contained in the records and files of the Commissioner of Revenue (hereinafter "Commissioner") pertaining to you or your business is confidential.
You may represent yourself in any proceeding or interview before the Commissioner or you may be represented by anyone whom you authorize in writing to be your representative.
You have the right to consult with a lawyer, accountant, or other representative at any time during an interview with an agent of the Commissioner. The Commissioner shall terminate the interview to allow you to consult with your representative.
You may record any interview with the Commissioner or his agent at your own expense. You should let the Commissioner or his agent know in advance of your intention to record the interview. The Commissioner may likewise record an interview, and a copy may be obtained within a reasonable time at your expense.
You may request an administrative review of any proposed assessment of tax. You must request this review within 60 days of your receipt of a proposed assessment. The administrative review may be based on a court hearing, a telephone hearing, or consideration of written documents. If you do not request an administrative hearing, you may still pursue your judicial remedies by filing an action in the circuit court.
If you receive an unfavorable decision from your administrative review, then you may request a review of the decision by the Commissioner. This review should be requested within 20 days of your receipt of the administrative decision. If you receive an unfavorable decision from the Commissioner on any issue, you may pursue judicial remedies as discussed below.
After the issuance of the final assessment and demand for payment, you may appeal the tax assessment to circuit court, regardless of whether you protested the assessment and requested an administrative review. To pursue your appeal of a tax assessment to circuit court you must either: (a) pay the entire amount of tax due for any taxable period(s) covered by the final assessment within one year of the date of the final assessment or (b) file a bond for double the amount of the tax deficiency within 30 days of the issuance of the final assessment. You must file your lawsuit within one year from the date of paying or within 30 days of filing a bond. Within 30 days of the final assessment, the Revenue Division may proceed with collection activities, including the filing of a lien, for any tax, penalty, or interest that is unpaid or not covered by a bond.
A taxpayer may file an amended return or a verified claim for credit or refund of an overpayment of any State tax within three years of the time the return was filed or two years from the date the tax was paid, whichever is later. Any amended return or claim for refund should be filed with the office of the Revenue Division which administers the type of tax in question.
If the Commissioner disallows the refund claim either in whole or in part, the Commissioner will issue a proposed notice of refund claim disallowance. You may request an administrative review of the refund disallowance. This request must be made within 60 days of your receipt of the proposed notice. If you receive an unfavorable decision from your administrative review, you may request a review of the decision by the Commissioner. This request must be made within 20 days of your receipt of the administrative decision.
Following an administrative review, the Commissioner will issue a final notice of refund claim disallowance. After the issuance of the final notice of claim disallowance, you may appeal the decision to circuit court. Judicial review is available whether or not you requested an administrative review. To pursue your appeal of a claim disallowance to circuit court, you must file suit within one year of the date of the final notice of claim disallowance. If the director fails to issue a written decision within six months of the date a claim for refund is filed, the taxpayer may then file suit to recover the amount claimed.
Any taxpayer who wishes to file a complaint regarding any activity concerning the administration or collection of any State tax by the Revenue Division should make the complaint in writing to:
Commissioner of Revenues
Ledbetter Building, Room 2440
PO Box 1272
Little Rock, Arkansas 72203-1272
In administering the State tax laws, the Commissioner is authorized by law to make an examination or investigation of the business, books, and records of the taxpayer. If the Commissioner determines that an additional amount of tax is due, then a proposed assessment shall be issued to the taxpayer. The taxpayer may seek relief from the proposed assessment as outlined above. If the taxpayer fails to preserve and maintain records suitable to determine the amount of tax due or to prove accuracy of any return, the Commissioner may make an estimated assessment based upon the best information available as to the amount of tax due by the taxpayer.
The Commissioner may issue a jeopardy assessment against any taxpayer (1) whose tax liability exceeds any bond on file indemnifying the State for the payment of a State tax, (2) who intends to leave the State, remove his property, or conceal himself or his property, (3) who intends to discontinue his business without making adequate provisions for payment of State taxes or, (4) who does any other act tending to prejudice or jeopardize the Commissioner's ability to compute, assess, or collect any State tax. Any taxpayer seeking relief from a jeopardy assessment must request an administrative hearing within five days from the receipt of the notice of jeopardy assessment.
When collecting any State tax due from a taxpayer, the Commissioner is authorized to file a certificate of indebtedness with the circuit clerk of any county of this State certifying that the person named therein is indebted to the State for the amount of tax due as established by the Commissioner. The certificate of indebtedness shall have the same force and effect as the entry of a judgment rendered by a circuit court and shall constitute a lien upon the title of any real and personal property of the taxpayer in the county where the certificate of indebtedness is recorded.
After the filing of the certificate of indebtedness, the Commissioner may take all steps authorized by law for the collection of the tax, including the issuance of a writ of execution, garnishment, and cancellation of any State tax permits or registrations.
Any court costs or sheriff's fees which result from the Commissioner's attempt to collect delinquent taxes shall be collected from the taxpayer in addition to the tax, interest, and penalties included in the certificate of indebtedness.
