Arkansas Administrative Code
Agency 006 - Department of Finance and Administration
Division 05 - Division of Revenues
Regulation 1997-4 - Comprehensive Individual Income Tax Regulations
Rule 26-51-405 - PARTNERSHIP INCOME
Rule 2.26-51-405 - Partnership Composite Return
Current through Register Vol. 49, No. 9, September, 2024
Before the Department will allow a composite individual income tax return ("block filing"), certain conditions must be agreed to. Those conditions are as follows:
1. The Revenue Division must be provided with the names of all relevant partners.
2. Each composite or block return must be filed in the name of the partnership and the partner that signs the return will be responsible for any assessments or deficiencies incurred by the return. This requirement does not relieve any of the partners from their personal liability in any way.
3. The total net taxable income in Arkansas must be reported on form AR1000. Tax will be computed at a flat 7% tax rate.
4. Partners who become or are residents of Arkansas, or who have income or losses from Arkansas sources other than from the partnership, will be excluded from the block filing. Only those partners who must file Arkansas non-resident individual income tax returns as a result of their interest in the partnership will be included in the proposed block filing.
5. The agreement to allow composite or block filing will be reviewed annually and the agreement is revocable at the option of the Revenue Division. Permission to file a composite return must be obtained from an Individual Income Tax Section Manager before such a return is filed.
