Arkansas Administrative Code
Agency 006 - Department of Finance and Administration
Division 05 - Division of Revenues
1998-1 - Comprehensive Corporation Income Tax Regulations
Rule 26-51-806 - FILING RETURNS
Rule 2.26-51-806(a) - Time and Place - Federal Consolidated Group

In the case of a member of a federal consolidated group which files a separate return in Arkansas, and which ceases to be a member of the consolidated group at some point during the tax year, the due date for filing the Arkansas short period return shall be the same date as the due date for the remaining members of the consolidated group. No penalty for late filing will be due for any such return if it is filed on or before the due date (or extended due date) for the other members. However, interest will be charged on any unpaid tax liability beginning on the 15th day of the fifth month following the end of the short period. See Regulation 1. 26-51-102(17)(B) for an explanation of when short tax periods are deemed to have ended.

EXAMPLE 1: D Corporation, a member of DEF group, files a separate Arkansas return and a federal consolidated return on a calendar year basis. D Corporation is sold on 04/12/93. DEF group has a federal extension to file its 12/93 return on 09/15/94. The separate Arkansas return of D Corporation for the tax period beginning 01/01/93 and ending 04/12/93 will be due 09/15/94. No penalty for late filing of D Corporation's Arkansas return will be assessed unless it is filed after 09/15/94. However, interest on any unpaid tax liability will be charged from 08/15/93 until the return is filed and the tax is paid.

EXAMPLE 2: Same facts as above except no federal extension was made. The Arkansas return of D Corporation for the short tax year ending 04/12/93 will be due 05/15/94 for purposes of determining late filing penalty, and any applicable interest will be charged from 08/15/93.