Arkansas Administrative Code
Agency 006 - Department of Finance and Administration
Division 05 - Division of Revenues
GROSS RECEIPTS TAX RULES
Rule 006.05.06-005-GR-81.2 - ADMINISTRATIVE AND JUDICIAL REMEDIES
Universal Citation: AR Admin Rules 006.05.06-005-GR-81.2
Current through Register Vol. 49, No. 9, September, 2024
A. PROTEST.
1. Protest of Assessment. If a taxpayer
objects to a proposed assessment of tax, the taxpayer must file his protest in
writing within sixty (60) days of receipt of the Notice of Proposed Assessment
setting forth under oath facts and/or law supporting the protest of the
assessment. The protest shall be mailed to the address set forth in the Notice
of Proposed Assessment. If the taxpayer fails to file a written protest within
sixty (60) days of receipt of the Notice of Proposed Assessment, then the
Director shall issue by certified mail, return receipt, a Notice of Final
Assessment. Failure to pay the Notice of Final Assessment within thirty (30)
days of receipt shall subject the taxpayer to the filing of a Certificate of
Indebtedness, constituting a judgment, and to the collection remedies available
to the Director.
2. Protest of
Refund Claim Denial. If a taxpayer objects to the denial of a claim for refund,
the taxpayer must file his or her protest in writing within sixty (60) days of
receipt of the Notice of Claim Denial setting forth under oath facts and law to
support the protest. The protest shall be mailed to the address set forth in
the notice. The taxpayer shall specify the form of hearing as described in
GR-81.2(B)(2).
B. HEARINGS.
1. If the taxpayer files a written
protest of the Notice of Proposed Assessment, or a written protest of the
denial of a claim for refund, within the sixty (60) day time period allowed for
a protest then the taxpayer will be granted a hearing before a Hearing Officer.
The Hearing Officer shall set the time and place for the hearing which will be
in any city in which the Revenue Division maintains a Field Audit District
Office, or in such city as the Director, in his or her discretion, may
designate. It is not necessary to request an administrative hearing prior to
seeking judicial relief.
2. At the
hearing the taxpayer has the option of:
a.
Appearing in person and representing himself or herself or being represented by
an authorized spokesperson for the presentation of evidence or argument in
support of the taxpayer's protest of the assessment;
b. Not personally appearing, but requesting
that a hearing be held and a decision rendered by the Hearing Officer upon the
basis of documentation or written arguments submitted by the taxpayer;
or
c. Requesting a hearing to be
held by telephone, video conference, or other electronic means available to the
Revenue Division.
3. The
taxpayer shall elect the form of administrative hearing in his or her written
protest. In any instance an attorney for the Revenue Division may appear to
offer evidence and legal argument in support of the Notice of Proposed
Assessment or the denial of the claim for refund.
C. REVISIONS.
1. Upon completion of the hearing and
submission of all documentary evidence and argument, the Hearing Officer shall
render a decision in writing and serve copies upon the taxpayer and the Office
of Revenue Legal Counsel. If the Notice of Proposed Assessment or the denial of
the claim for refund is sustained in whole or in part, the taxpayer or Revenue
Legal Counsel may request in writing, within twenty (20) days of the mailing of
the decision, that the Director revise the decision of the Hearing Officer.
Either the taxpayer or Revenue Legal Counsel must provide a copy of any written
request for revision to the other. The request for revision to the Director
shall state the legal or factual basis for the revision. If the Director
revises the decision of the Hearing Officer, the Director must send the final
decision to the taxpayer and Revenue Legal Counsel. If the Director's final
decision sustained a proposed assessment of tax, then a Notice of Final
assessment shall be issued. No further notice will be issued for a final
decision of the Director that results in no tax due, including the denial of a
claim for refund. A taxpayer may not request a revision of the final decision
of the Director.
2. If the Director
refuses to make a revision, or if the taxpayer or Revenue Legal Counsel does
not make a request for revision, then the Director will send either of the
following:
a. A final assessment to the
taxpayer, as provided by Ark. Code Ann. § 26-18401, that is made upon the final
determination of the Hearing Officer that sustained the proposed assessment of
tax; or
b. A notice in writing to
both the taxpayer and Revenue Legal Counsel, if a revision was requested, of
the Director's determination not to revise a decision that resulted in no tax
due, including the denial of a claim for refund.
D. JUDICIAL RELIEF.
1. Proposed Assessments of Tax. A taxpayer
may seek judicial relief by one of the following methods:
a. Within one (1) year of the date of the
notice of final assessment, paying the tax, penalty, and interest assessed for
at least one (1) taxable period within the audit period and then filing suit
within one (1) year of the date of payment. Collection activities will proceed
with respect to any taxable periods that are not paid. A taxable period for
gross receipts, use or withholding tax is one (1) month. A taxable period for
income tax is one year; or
b.
Within thirty (30) days of the notice of final assessment, filing with the
Director a surety bond, letter of credit, or other collateral approved by the
Director in double the amount of the tax deficiency, interest, and penalty and
filing suit in circuit court within thirty (30) days to stay the determination
of the Director. The taxpayer shall faithfully and diligently prosecute the
suit to a final determination and shall pay any deficiency found by the court
to be due and any court cost assessed against him or her. The failure of the
taxpayer to file suit, diligently prosecute the suit or pay any tax deficiency
and court costs shall result in the forfeiture of the collateral in the amount
of the assessment and assessed court costs.
2. Denial of Claims for Refund. Within one
(1) year of the issuance of the Notice of Claim Denial, decision of the hearing
officer, or revision decision of the Director, whichever occurs latest, the
taxpayer may file suit in court seeking a refund. It is not necessary to
request an administrative hearing prior to seeking judicial relief.
Ark. Code Ann. §§ 26-18-404; 26-18-405; 26-18-406
Disclaimer: These regulations may not be the most recent version. Arkansas may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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