Arkansas Administrative Code
Agency 006 - Department of Finance and Administration
Division 05 - Division of Revenues
1998-1 - Comprehensive Corporation Income Tax Regulations
- Rule 2-8-101 - BIOTECHNOLOGY DEVELOPMENT AND RESEARCH
- Rule 15-4-1224 - COUNTY AND REGIONAL INDUSTRIAL DEVELOPMENT CORPORATION ACT
- Rule 15-4-1704 - ARKANSAS ENTERPRISE ZONE ACT
- Rule 15-5-1301 - AFFORDABLE NEIGHBORHOOD HOUSING
- Rule 26-18-208 - TAX PENALTIES
- Rule 26-18-306 - REFUND AND CREDIT CLAIMS
- Rule 26-18-404 - TAXPAYER RELIEF
- Rule 26-18-406 - TAXPAYER RELIEF
- Rule 26-18-505 - EXTENSION OF TIME FOR FILING RETURNS
- Rule 26-18-507 - REFUNDS OF OVERPAYMENTS
- Rule 26-51-102 - CORPORATION INCOME TAX DEFINITIONS
- Rule 26-51-204 - RAILROADS AND PUBLIC UTILITIES
- Rule 26-51-205 - CORPORATION INCOME TAX RATES
- Rule 26-51-303 - EXEMPT ORGANIZATIONS
- Rule 26-51-401 - ACCOUNTING METHODS
- Rule 26-51-402 - BASIS FOR DETERMINING TAX LIABILITY
- Rule 26-51-404 - GROSS INCOME GENERALLY
- Rule 26-51-411 - GAIN OR LOSS - SALES OF PROPERTY
- Rule 26-51-412 - GAIN OR LOSS - EXCHANGE OF PROPERTY
- Rule 26-51-413 - CORPORATE LIQUIDATIONS
- Rule 26-51-414 - DEFERRED COMPENSATION PLANS
- Rule 26-51-416 - DEDUCTIONS - TAXES
- Rule 26-51-419 - DEDUCTIONS - CHARITABLE CONTRIBUTIONS
- Rule 26-51-423 - DEDUCTIONS - EXPENSES
- Rule 26-51-424 - DEDUCTIONS - LOSSES
- Rule 26-51-425 - DEDUCTIONS - WORTHLESS DEBTS
- Rule 26-51-426 - DEDUCTIONS - RESERVE FOR BAD DEBTS OR LIABILITIES
- Rule 26-51-427 - DEDUCTIONS - NET OPERATING LOSS (NOL)
- Rule 26-51-428 - DEDUCTIONS - DEPRECIATION AND EXPENSING OF PROPERTY
- Rule 26-51-440 - FEDERAL SUBCHAPTER M
- Rule 26-51-440 - FASITs
- Rule 26-51-509 - YOUTH APPRENTICESHIP PROGRAM
- Rule 26-51-701 - MULTISTATE BUSINESS INCOME
- Rule 26-51-702 - APPORTIONMENT - DETERMINATION OF NEXUS
- Rule 26-51-704 - NONBUSINESS INCOME
- Rule 26-51-709 - APPORTIONMENT - BUSINESS INCOME
- Rule 26-51-710 - PROPERTY FACTOR
- Rule 26-51-711 - PROPERTY FACTOR - VALUATION OF PROPERTY
- Rule 26-51-713 - PAYROLL FACTOR
- Rule 26-51-715 - SALES FACTOR
- Rule 26-51-717 - SALES FACTOR
- Rule 26-51-718 - MODIFICATION OF APPORTIONMENT AND ALLOCATION
- Rule 26-51-802 - PARTNERSHIP RETURNS
- Rule 26-51-804 - CORPORATION RETURNS
- Rule 26-51-805 - CONSOLIDATED CORPORATE RETURNS
- Rule 26-51-806 - FILING RETURNS
- Rule 26-51-807 - FILING RETURNS
- Rule 26-51-912 - MINIMUM ESTIMATED TAX
- Rule 26-51-913 - PAYMENT OF ESTIMATED TAX
- Rule 26-51-1001 - WATER CONSERVATION INCENTIVES
- Rule 26-51-1103 - DONATIONS AND SALES TO EDUCATIONAL INSTITUTIONS
- Rule 26-51-1213 - STEEL MILL TAX INCENTIVES
- Rule 26-51-1701 - LOW INCOME HOUSING
ARKANSAS CORPORATION INCOME TAX REGULATIONS
Pursuant to the authority vested in the Commissioner of Revenue and in compliance with Ark. Code Ann. § 26-18-301 and § 26-51-104, the Commissioner of Revenue of the Department of Finance and Administration, with the approval of the Governor, does hereby promulgate the following rules and regulations for the enforcement and administration of Ark. Code Ann. §2651-101 et seq.
EFFECTIVE DATE: These regulations shall be effective for tax years beginning on and after January 1, 1998. All currently existing Arkansas corporate income tax regulations (with the exception of 1996-3) are hereby specifically repealed as of the effective date of these regulations.
PURPOSE OF THE REGULATIONS: The following regulations are promulgated to implement and clarify the Arkansas Income Tax Act of 1929 (§ 26-51-101 et seq.), as amended. All persons affected by or relying upon these regulations are advised to read them in their entirety, as the meaning of the provisions of one regulation may depend upon the provisions contained in another regulation.
INTERPRETATION: In those instances where Arkansas has adopted a section of the Internal Revenue Code (IRC) as its own law, the regulations promulgated by the Treasury Department to aid in interpreting the IRC section should be used for guidance in applying Arkansas' law.
INDEX
INDIVIDUAL INCOME TAX REGULATIONS
|
REGULATION NUMBER |
PAGE NUMBER |
|
|
ACCOUNTING METHOD |
||
|
Accounting Requirements |
1. 26-51-401(a) |
16 |
|
Accounting Requirements |
2. 26-51-401(a) |
17 |
|
Change in Accounting Methods |
1. 26-51-401(b) |
17 |
|
AIRLINES |
||
|
Apportionment |
4. 26-51-718(d) |
69 |
|
AMORTIZATION |
||
|
Intangibles |
1. 26-51-428(c) |
39 |
|
APPORTIONMENT |
||
|
Airlines |
4. 26-51-718 ' |
69 |
|
Apportionment and Allocation |
||
|
Source of Law and Regulations |
1. 26-51-701 |
42 |
|
Business vs. Nonbusiness Income |
2. 26-51-701 |
42 |
|
Unitary Business Principle |
3. 26-51-701 |
43 |
|
Allocation of Nonbusiness Income |
1. 26-51-704 |
50 |
|
Authorized |
1. 26-51-702 |
44 |
|
Determining Apportionment Factor |
1. 26-51-709 |
50 |
|
Bus Lines or Motor Freight Lines |
5. 26-51-718(d) |
69 |
|
Construction Contractors |
1. 26-51-718(d) |
58 |
|
Nexus - - Generally |
2. 26-51-702 |
44 |
|
Nature of Property Being Sold |
3. 26-51-702 |
44 |
|
Solicitation of Orders |
4. 26-51-702 |
44 |
|
Ancillary Activities |
5. 26-51-702 |
45 |
|
DeMinimus Activities |
6. 26-51-702 |
45 |
|
Independent Contractors |
7. 26-51-702 |
45 |
|
Unprotected/Protected Activities |
8. 26-51-702 |
46 |
|
Resident Individuals & Corps. |
9. 26-51-702 |
49 |
|
Registration/Qualification |
10. 26-51-702 |
49 |
|
Loss of Protection |
11. 26-51-702 |
49 |
|
Partnership Income Allocated |
1. 26-51-802(b) |
71 |
|
Payroll Factor - - Generally |
1. 26-51-713 |
54 |
|
Consistency |
2. 26-51-713 |
55 |
|
Numerator |
3. 26-51-713 |
55 |
|
Pipelines |
6. 26-51-718(d) |
69 |
|
Private Railcar Operators |
2. 26-51-204 |
13 |
|
Property Factor |
||
|
Includable Property |
1. 26-51-710 |
51 |
|
Consistency |
2. 26-51-710 |
52 |
|
Numerator |
3. 26-51-710 |
52 |
|
Valuation - - Owned Property |
1. 26-51-711 |
52 |
|
Valuation - - Rented Property |
2. 26-51-711 |
53 |
|
Public Utilities |
3. 26-51-204 |
14 |
|
Publishing |
3. 26-51-718(d) |
66 |
|
Railroads |
1. 26-51-204 |
11 |
|
Sales Factor - - Generally |
1. 26-51-715 |
56 |
|
Exceptions |
2. 26-51-715 |
56 |
|
Consistency |
3. 26-51-715 |
57 |
|
Numerator |
4. 26-51-715 |
57 |
|
Nontangible Personal Property |
1. 26-51-717 |
58 |
|
TV & Radio Broadcasting |
2. 26-51-718(d) |
62 |
|
BAD DEBTS |
||
|
Generally |
1. 26-51-425 |
35 |
|
Mortgaged or Pledged Property |
2. 26-51-425 |
36 |
|
Bonds and Similar Obligations |
3. 26-51-425 |
36 |
|
BANKRUPTCY |
||
|
Dissolution and Receivership |
1. 26-51-804(d) |
72 |
|
BUS LINES |
||
|
Apportionment |
5. 26-51-718(d) |
69 |
|
CHARTIBLE CONTRIBUTIONS |
||
|
Generally |
1. 26-51-419 |
32 |
|
Consolidated Filers |
1. 26-51-805(f) |
73 |
|
CONSOLIDATED CORPORATE RETURNS |
||
|
Change of Ownership |
1. 26-51-805(d) (1) |
72 |
|
Allocation of Tax Credits |
1. 26-51-805(e) |
73 |
|
Eligible Members |
1. 26-51-805(a) (1) |
72 |
|
Filing Time and Place |
2. 26-51-806(a) |
82 |
|
Group Filing |
1. 26-51-805 |
72 |
|
Net Operating Loss |
2. 26-51-805(f) |
73 |
|
Separate Computation of Income |
1. 26-51-805(f) |
73 |
|
Separate Computation of Income |
2. 26-51-805(f) |
76 |
|
CORPORATE LIQUIDATIONS |
||
|
Treatment of Distributions |
1. 26-51-413 |
30 |
|
Election of Subchapter S Status |
2. 26-51-413 |
30 |
|
CORPORATE RETURNS |
||
|
Bankruptcy |
1. 26-51-804(d) |
72 |
|
Federal Extensions |
1. 26-51-807 |
83 |
|
Federal Extensions |
2. 26-51-807 |
83 |
|
FEIN |
1. 26-51-804(a) |
71 |
|
Filing Time and Place |
1. 26-51-806(a) |
82 |
|
Federal Consolidated Group |
2. 26-51-806(a) |
82 |
|
Forms |
1. 26-51-806(b) (1) |
82 |
|
Substitute Forms |
2. 26-51-806(b) (1) |
83 |
|
CREDITS |
||
|
Affordable Neighborhood Housing |
1. 15-5-1301 |
03 |
|
Biotechnology |
1. 2-8-101 |
01 |
|
Carryforward or Short Tax Year |
2. 26-51-102(17) (B) |
11 |
|
County or Regional Industrial |
||
|
Development Corporation |
1. 15-4-1224 |
01 |
|
Gain or Loss upon Sale of Stock |
2. 15-4-1224 |
02 |
|
Enterprise Zone |
1. 15-4-1704 |
02 |
|
Low Income Housing |
1. 26-51-1701 |
88 |
|
Research & Development |
1. 26-51-1103 |
88 |
|
Steel Mills |
1. 26-51-1213(a) |
88 |
|
Water Conservation Credits |
1. 26-51-1006 |
85 |
|
Water Conservation Credits |
1. 26-51-1007 |
86 |
|
Water Conservation Credits |
1. 26-51-1008 |
86 |
|
Water Conservation Credits |
1. 26-51-1010(c) |
87 |
|
Water Conservation Credits |
1. 26-51-1010(d) |
87 |
|
Water Conservation Credits |
1. 26-51-1011 |
87 |
|
Youth Apprenticeship |
1. 26-51-509 |
41 |
|
DEBT FORGIVENESS |
1. 26-51-404(b) (11) |
24 |
|
DEDUCTIONS |
||
|
Amortization of Intangibles |
1. 26-51-428(c) |
39 |
|
Bad Debts - - Generally |
1. 26-51-425 |
35 |
|
Mortgaged or Pledged Property |
2. 26-51-425 |
36 |
|
Bonds and Similar Obligations |
3. 26-51-425 |
36 |
|
Reserve for Bad Debts |
1. 26-51-426 |
37 |
|
Charitable Contributions |
1. 26-51-419 |
32 |
|
Depreciation |
1. 26-51-428(a) |
38 |
|
Losses - - Generally |
1. 26-51-424(a) (1) |
34 |
|
Demolition of Buildings |
2. 26-51-424(a) (1) |
34 |
|
Obsolete Capital Assets |
3. 26-51-424(a) (1) |
34 |
|
Stock- - Value Shrinkage |
4. 26-51-424(a) (1) |
35 |
|
Farm Losses |
5. 26-51-424(a) (1) |
35 |
|
NOL Adjustments |
1. 26-51-427 |
37 |
|
NOL Carryover - - Merger |
1. 26-51-427(3) (C) |
38 |
|
Sub Chapter M |
1. 26-51-440 |
39 |
|
Taxes |
1. 26-51-416 |
32 |
|
Travel and Entertainment |
1. 26-51-423(b) |
33 |
|
DEFERRED COMPENSATION PLANS |
||
|
SIMPLE Retirement Plans |
1. 26-51-414 |
31 |
|
DEFINITIONS |
||
|
Association |
1. 26-51-303 |
15 |
|
Cooperative Association |
1. 26-51-303 |
15 |
|
Corporation |
1. 26-51-102(5) |
09 |
|
Foreign |
1. 26-51-102(7) |
09 |
|
Tax Exempt |
1. 26-51-303 |
15 |
|
Dealer |
1. 26-51-412(a) |
27 |
|
Farm |
10. 26-51-404(a) (1) |
20 |
|
Fiduciary |
1. 26-51-303 |
09 |
|
Partnership |
2. 26-51-805(f) |
15 |
|
Separate Return Limitation Year |
2. 26-51-805(f) |
76 |
|
Separate Return Year |
1. 26-51-102(17) (A) |
76 |
|
Tax Year |
2. 26-51-102(17) (A) |
09 |
|
Tax Year |
1. 26-51-102(17) (B) |
10 |
|
Tax Year - - Short Year |
2. 26-51-102(17) (B) |
11 |
|
Carryforward |
1. 26-51-428(a) |
11 |
|
DEPRECIATION |
38 |
|
|
ESTIMATED TAX |
||
|
Generally |
1. 26-51-912 |
85 |
|
Payment Claimed |
1. 26-51-913(b) |
85 |
|
EXTENSIONS |
||
|
Federal Extensions |
2. 26-51-807 |
83 |
|
Consolidated Returns |
2. 26-51-806(a) |
82 |
|
State Extension - - First 90 days |
1. 26-18-505(a) (3) (A) |
07 |
|
State Extension - - Second 90 days |
1. 26-18-505(a) (3) (B) |
07 |
|
Federal Extensions |
1. 26-51-807 |
83 |
|
FASITs |
||
|
Definition |
2. 26-51-440 |
39 |
|
Qualification Requirements |
3. 26-51-440 |
39 |
|
Taxation of FASITs |
4. 26-51-440 |
40 |
|
Taxation of Regular Interests |
5. 26-51-440 |
41 |
|
Prohibited Transactions |
6. 26-51-440 |
41 |
|
Transfers of Assets to FASITs |
7. 26-51-440 |
41 |
|
GAIN OR LOSS |
||
|
Bonds |
||
|
Premiums or Discounts |
9. 26-51-404(a) (1) |
19 |
|
Sinking Funds |
14. 26-51-404(a) (1) |
20 |
|
Corporate Dissolutions |
12. 26-51-404(a) (1) |
20 |
|
Reorganizations |
1. 26-51-412(c) |
28 |
|
Exchanges of Property |
2. 26-51-412(c) |
29 |
|
Exchanges of Property |
3. 26-51-412(c) |
29 |
|
Securities Received |
4. 26-51-412(c) |
29 |
|
Securities Received |
5. 26-51-412(c) |
29 |
|
Property Exchange - - Like Kind |
1. 26-51-412(a) |
27 |
|
Property Exchange - - Not Like Kind |
2. 26-51-412(a) |
27 |
|
Payment of Dividends |
3. 26-51-412(a) |
27 |
|
Stock Received for Property |
1. 26-51-412(b) |
28 |
|
Involuntary Conversion |
1. 26-51-404(b) (1) |
23 |
|
Basis of Property So Acquired |
4. 26-51-412(a) |
27 |
|
Sale of Property - - Generally |
1. 26-51-411 |
24 |
|
Shares of Stock |
2. 26-51-411 |
25 |
|
Installment Sales |
1. 26-51-411(e) |
26 |
|
Loss Carryforwards |
3. 26-51-411 |
26 |
|
Sale Proceeds as Income |
11. 26-51-404(a) (1) |
20 |
|
Installment Sales |
||
|
Personal Property |
2. 26-51-404(a) (2) |
22 |
|
Real Estate |
3. 26-51-404(a) (2) |
22 |
|
Stock Dividends |
19. 26-51-404(a) (1) |
22 |
|
GROSS INCOME |
||
|
Definitions |
1. 26-51-404(a) (1) |
18 |
|
Receipt |
2. 26-51-404(a) (1) |
18 |
|
Attributable to Tax Year |
1. 26-51-404(a) (2) |
22 |
|
Manufacturing, Merchandising |
||
|
and Mining |
3. 26-51-404(a) (1) |
18 |
|
Contract with U. S. Government |
4. 26-51-404(a) (1) |
18 |
|
Payment in Forms Other than Cash |
5. 26-51-404(a) (1) |
19 |
|
Promissory Notes |
6. 26-51-404(a) (1) |
19 |
|
Leased Property |
7. 26-51-404(a) (1) |
19 |
|
Sale of Stock Shares |
8. 26-51-404(a) (1) |
19 |
|
Corporate Bonds |
9. 26-51-404(a) (1) |
19 |
|
Farming |
10. 26-51-404(a) (1) |
20 |
|
Sale of Property |
11. 26-51-404(a) (1) |
20 |
|
Corporate Dissolution |
12. 26-51-404(a) (1) |
20 |
|
Voluntary Shareholder Payments |
13. 26-51-404(a) (1) |
20 |
|
Trusts |
14. 26-51-404(a) (1) |
20 |
|
Annuities |
15. 26-51-404(a) (1) |
21 |
|
Real Estate |
16. 26-51-404(a) (1) |
21 |
|
Lease of Buildings |
17. 26-51-404(a) (1) |
21 |
|
Long-Term Contracts |
18. 26-51-404(a) (1) |
22 |
|
Stock Distributions |
19. 26-51-404(a) (1) |
22 |
|
Exempt Income |
||
|
Involuntary Conversion |
1. 26-51-404(b) (1) |
23 |
|
Life Insurance Proceeds |
1. 26-51-404(b) (3) |
23 |
|
Interest on U.S. Obligations |
1. 26-51-404(b) (6) |
23 |
|
Interest on Ark. Obligations |
2. 26-51-404(b) (6) |
24 |
|
Forgiveness of Debt |
1. 26-51-404(b) (11) |
24 |
|
Installment Sales |
||
|
Personal Property |
2. 26-51-404(a) (2) |
22 |
|
Installment Sales - - Real Estate |
3. 26-51-404(a) (2) |
22 |
|
INSTALLMENT SALES |
||
|
Personal Property |
2. 26-51-404(a) (2) |
22 |
|
Real Estate |
3. 26-51-404(a) (2) |
22 |
|
INTEREST INCOME |
||
|
U. S. Obligations |
1. 26-51-404(b) (6) |
23 |
|
Arkansas Obligations |
2. 26-51-404(b) (6) |
24 |
|
LIQUIDATIONS |
||
|
Treatment of Distributions |
1. 26-51-413 |
30 |
|
Election of Subchapter S |
||
|
Corporation Status |
2. 26-51-413 |
30 |
|
MOTOR FREIGHT LINES (TRUCKING COMPANIES) |
||
|
Apportionment |
5. 26-51-718(d) |
69 |
|
NET OPERATING LOSS |
||
|
Adjustments Beyond Statutory Limits |
1. 26-51-427 |
37 |
|
Carryforward Due to Merger |
1. 26-51-427(3) (C) |
38 |
|
Carryforward of Short Tax Year |
2. 26-51-102(17) (B) |
11 |
|
Consolidated Returns |
2. 26-51-805(f) |
76 |
|
Steel Mills |
1. 26-51-1213(a) |
88 |
|
NEXUS |
||
|
Ancillary Activities |
5.26-51.702 |
45 |
|
De Minimis Activities |
6. 26-51-702 |
45 |
|
Arkansas Corporations |
9. 26-51-702 |
49 |
|
Generally |
2. 26-51-702 |
44 |
|
Independent Contractors |
7. 26-51-702 |
45 |
|
Nature of Property Being Sold |
3. 26-51-702 |
44 |
|
Registration or Qualifications |
10. 26-51-702 |
49 |
|
Solicitation of Orders |
4. 26-51-702 |
44 |
|
Unprotected & Protected Activities |
8. 26-51-702 |
46 |
|
Part Year |
11. 26-51-702 |
49 |
|
NON-PROFIT ORGANIZATIONS |
1. 26-51-303 |
15 |
|
PARTNERSHIP INCOME |
1. 26-51-802(b) |
71 |
|
PENALTIES |
||
|
Estimated Tax |
1. 26-18-208(6) (A) |
03 |
|
Estimated Tax |
1. 26-18-208(6) (B) (iii) |
05 |
|
PIPELINES |
||
|
Apportionment |
6. 26-51-718(d) |
69 |
|
PROTEST OF ASSESSMENT |
||
|
Time Limitation to File |
1. 26-18-404 |
05 |
|
Administrative & Judicial Review |
1. 26-18-406 |
06 |
|
PROTEST OF DISALLOWED REFUND |
||
|
Administrative & Judicial Review |
1. 26-18-406 |
06 |
|
PUBLIC UTILITIES |
||
|
Apportionment |
3. 26-51-204 |
14 |
|
PUBLISHING |
||
|
Apportionment |
3. 26-51-718(d) |
66 |
|
RAILROADS |
||
|
Apportionment for Private Railcar |
||
|
Operators (Other than Railroads) |
2. 26-51-204 |
13 |
|
Apportionment for Railroads |
1. 26-51-204 |
11 |
|
RECORD RETENTION |
1. 26-51-401(a) |
16 |
|
REFUNDS |
1. 26-18-507(a) |
08 |
|
SECTION 179 -- EXPENSING AND DEPRECIATION |
1. 26-51-428(a) |
38 |
|
STATUE OF LIMITATIONS |
||
|
Assessments, Collections, Refunds And Prosecution |
1. 26-18-306(i) (1) |
05 |
|
TV & Radio Apportionment |
2. 56-51-718(d) |
62 |
|
TAX EXEMPT ORGANIZATIONS |
1. 26-51-303 |
15 |
|
TAX RATES |
||
|
Corporations |
1. 26-51-205 |
14 |
|
TAXABLE YEAR |
||
|
Basis for Determining Liability |
1. 26-51-402(a) |
17 |
|
Designation of Taxable Year |
1. 26-51-102(17) (A) |
09 |
|
52 or 53 Week Year |
2. 26-51-102(17) (A) |
10 |
|
Short Year |
1. 26-51-102(17) (B) |
11 |
|
NOL Carryforward and Credits |
2. 26-51-102(17) (B) |
11 |
|
TRUCKING COMPANIES |
||
|
Apportionment |
5. 26-51-718(d) |
69 |
