Ark. Code Ann. § 26-18-306 (2020)
Time limitations for assessments, collection, refunds, and prosecution
History. Acts 1979, No. 401, § 15; 1981, No. 914, § 4; A.S.A. 1947, § 84-4715; Acts 1989, No. 826, § 15; 1991, No. 685, § 6; 1993, No. 785, § 1; 1997, No. 951, § 27; 1999, No. 1126, § 1; 1999, No. 1277, § 10; 2003, No. 1718, § 2; 2007, No. 218, § 9; 2009, No. 238, § 1; 2009, No. 373, § 1; 2011, No. 983, § 2; 2015, No. 896, §§ 1, 2; 2015, No. 1254, § 1; 2017, No. 999, § 4; 2019, No. 760, § 1; 2019, No. 863, § 1.
Publisher's Notes. Acts 1989, No. 826, § 1, provided that this act shall be known and may be cited as the “Arkansas Income Tax Technical Revenue Act of 1989”.
Amendments. The 2009 amendment by No. 238 added (l).
The 2009 amendment by No. 373, in (b), inserted “resulting from the issues that are included in the correction” in (b)(2)(A), and added (b)(3) through (b)(5).
The 2011 amendment substituted “§ 1406 or 1407” for “§ 1046 or 1047” in (l)(1)(A).
The 2015 amendment by No. 896 substituted “one hundred eighty (180) days” for “ninety (90) days” in (b)(1); in (b)(2)(B), substituted “if a taxpayer” for “in the instance of a taxpayer who”, substituted “three (3) years” for “eight (8) years”, inserted “amended” preceding “return”, and deleted “or the date the return was filed, whichever period expires later” from the end; substituted “one hundred eighty (180) days” for “ninety (90) days” in (b)(3)(A); substituted “one hundred eighty-first day” for “ninety-first day” in (b)(3)(B); added (m); and made stylistic changes.
The 2015 amendment by No. 1254 added (i)(1)(C) [now (i)(1)(D)]; and made stylistic changes.
The 2017 amendment added (n).
The 2019 amendment by No. 760 redesignated former (h) as (h)(1); added “Except as otherwise provided in this chapter” in (h)(1); and added (h)(2).
The 2019 amendment by No. 863 deleted “or verified claim for credit or refund of an overpayment of a state tax” following “amended return” in (i)(1)(A); inserted (i)(1)(B); redesignated former (i)(1)(B) as (i)(1)(C); redesignated part of (i)(1)(C) as (i)(1)(C)(i); added (i)(1)(C)(ii); and redesignated former (i)(1)(C) as (i)(1)(D).
Effective Dates. Acts 2019, No. 760, § 4. Effective date clause provided: “Sections 1-3 of this act are effective for tax years beginning on or after January 1, 2020”.
Acts 2019, No. 863, § 2. Effective date clause provided: “Section 1 of this act is effective for tax years beginning on or after January 1, 2019”.
Research References
ALR.
Validity and applicability of statutory time limit concerning taxpayer's claim for state tax refund. 1 A.L.R.6th 1.
Ark. L. Rev.
Case Note, Pledger v. Illinois Tool Works, Inc.: Arkansas Belatedly Recognizes the Unitary Business Principle as a Limitation of Its Power to Tax Capital Gains of Nondomiciliary Corporations, 45 Ark. L. Rev. 597.
U. Ark. Little Rock L.J.
Legislative Survey, Taxation, 4 U. Ark. Little Rock L.J. 609.
Case Notes
Applicability.
Subdivision (i)(1) of this section does not supply the standard for determining whether an Enterprise Zone Act (see § 15-4-1701 et seq.) refund claim is timely filed. Acxiom Corp. v. Leathers, 331 Ark. 205, 961 S.W.2d 735 (1998).
Where defendant was charged with willfully attempting to evade or defeat the payment of tax, in violation of § 26-18-201, and was convicted of failure to pay tax, in violation of § 26-18-202, the six-year statute of limitations under subsection (j) was applicable rather than the more general three-year limitations period under § 5-1-109(b)(2); subsection (j) specifically provides a six-year limitations period for prosecutions for any of the various criminal offenses arising under the provisions of any state tax law, and it is a well-settled principle of law that a general statute does not apply when a specific one governs the subject matter. Owens v. State, 354 Ark. 644, 128 S.W.3d 445 (2003).
Extensions.
The extension of the statute of limitations from three years to six years under subsection (e) for taxpayers who understate their tax liability by more than 25% does not apply to use taxes that became delinquent before this provision was effective on January 1, 1980. Ragland v. Travenol Labs., Inc., 286 Ark. 33, 689 S.W.2d 349 (1985).
Tolling of Limitations.
A proposed tax assessment under § 26-18-403, if contested, will toll subsection (a), which limits the time in which an assessment can be made to three years. Ragland v. Alpha Aviation, Inc., 285 Ark. 182, 686 S.W.2d 391 (1985).
Cited: Mason v. State, 285 Ark. 479, 688 S.W.2d 299 (1985); Jones v. Ragland, 293 Ark. 320, 737 S.W.2d 641 (1987).