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-86 - BAD CHECKS AND ACCEPTANCE OF PERSONAL CHECKS

Universal Citation: AR Admin Rules 006.05.06-005-GR-86

Current through Register Vol. 49, No. 9, September, 2024

A. If any person makes payment to the Department by means of a check, draft, money order, or electronic funds transfer drawn on any bank, person, firm or corporation, and the check, draft, money order, or electronic funds transfer is later returned without the amount due having been paid in full, the Director is authorized and empowered to impose a penalty of ten percent (10%) of the face amount of such check, draft, money order, or electronic funds transfer or $20.00, whichever is greater, against the maker or drawer of such check, draft, money order, or electronic funds transfer. This section shall not apply if the person establishes to the satisfaction of the Director that he tendered such check, draft, money order, or electronic funds transfer in good faith and with reasonable cause to believe it would be duly paid.

B. The Director will refuse to accept personal checks in the following instances:

1. When a second personal check is tendered in payment of an invalid check previously tendered;

2. When the Director has received from a particular individual one or more personal checks within a twelve (12) month period that have been returned due to insufficient funds or other reason;

3. When an individual is attempting to secure an immediate release of a tax lien;

4. When tax payments are required to be made by electronic funds transfer as required by Arkansas law;

5. When a corporation or fiduciary is attempting to file a final tax return prior to disposing of assets;

6. When an individual attempts to obtain a clearance letter from the Revenue Division in order to renew an Alcoholic Beverage Control permit or a Tobacco Control Board permit;

7. When transient vendors sell at fairs and special events; and

8. When a taxpayer pays the tax liability following service of a business closure order.

Ark. Code Ann. §§ 19-2-203; 19-2-204

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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