Arkansas: Sales Tax Handbook
How to appeal a sales tax audit or penalty in Arkansas
In Arkansas, the Department of Finance and Administration will frequently audit business sales tax returns and may issue penalties or punishments for tardy filing, incorrect reporting, willful omissions, or other violations. Penalties can range from fines to revocation of your sales tax permit depending on the infraction.
If you disagree with a penalty or ruling made by the Arkansas Department of Finance and Administration, you have several options you can pursue in appealing their decision. This page contains basic guidelines for appealing to the Department of Finance and Administration, to an administrative appeal body, and through the courts.
Sales Tax Statute of Limitations in Arkansas
In sales tax law, the "statute of limitations" is the maximum amount of time state authorities have to investigate and begin potential audit or prosecution related to a a filed Arkansas sales tax return in the event of underpayment, incorrect reportings, etc. The Department of Finance and Administration cannot begin an audit or issue a penalty after this timeframe.
The statute of limitations in Arkansas is four years from the later of either the return filing date or the return due date. However, if the receipts are understated by greater than 25%, then three years from the return filing date becomes six years.
Appealing to the Department of Finance and Administration in Arkansas
If you do not agree with a penalty or decision made by the Arkansas Department of Finance and Administration, you have the right to file an appeal and ask for reconsideration. In the case of a department appeal, an official petition must be filed with the Director of the Department of Finance and Administration less than thirty days after the receipt of the notice of assessment.Top
Administrative Sales Tax Appeals in Arkansas
This state has no administrative appeal bodyTop
Judicial Sales Tax Appeals in Arkansas
If all other appeal avenues fail, businesses can make a final appeal in the state court system. When working with judicial appeals, your suit must be filed within thirty days if you want the files tender with the Circuit Court about a year following the date of final determination.
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