Arkansas Administrative Code
Agency 006 - Department of Finance and Administration
Division 05 - Division of Revenues
1998-1 - Comprehensive Corporation Income Tax Regulations
Rule 26-51-702 - APPORTIONMENT - DETERMINATION OF NEXUS
Rule 7.26-51-702 - Independent Contractors
Current through Register Vol. 49, No. 9, September, 2024
15 U.S.C. § 381 provides protection to certain in-state activities if conducted by an independent contractor that would not be afforded if performed by the taxpayer or its employees or other representatives. Independent contractors may engage in the following limited activities in Arkansas without the taxpayer's loss of protection:
1. Soliciting sales;
2. Making sales; or
3. Maintaining an office.
Sales representatives who represent a single principal are not considered to be independent contractors and are subject to the same limitations as those provided under 15 U.S.C. § 381 and these regulations.
Maintenance of a stock of goods in Arkansas by an independent contractor under consignment or any other type of holding arrangement with the taxpayer will remove the protection unless such stock is used only for purposes of display and solicitation.
