2010 Arkansas Code
Title 26 - Taxation
Subtitle 2 - Administration Of State Taxes
Chapter 18 - State Tax Procedure Generally
Subchapter 10 - Business Closure
§ 26-18-1001 - Business closure authority -- Notice.

26-18-1001. Business closure authority -- Notice.

(a) In addition to all other remedies provided by law for the collection of unpaid taxes, the Director of the Department of Finance and Administration may close the business of a noncompliant taxpayer as defined by 26-18-104, subject to the administrative and judicial appeal procedures in this subchapter, if the noncompliant taxpayer for three (3) times within any consecutive twenty-four-month period fails to either:

(1) Report in the manner required by Arkansas law:

(A) Gross receipts or compensating use tax; or

(B) State income tax withholding for employees; or

(2) Remit the tax that is due for the reporting period for:

(A) Gross receipts or compensating use tax; or

(B) State income tax withholding for employees.

(b) (1) The director shall give notice to the noncompliant taxpayer that the third delinquency in reporting or remitting tax in any consecutive twenty-four-month period will result in the closure of the business.

(2) The notice must be in writing and delivered to the noncompliant taxpayer by the United States Postal Service or by hand delivery.

(c) (1) If the noncompliant taxpayer has a third delinquency in reporting or remitting tax in any consecutive twenty-four-month period after the issuance of the notice provided in subsection (b) of this section, the director shall notify the noncompliant taxpayer by certified mail or by hand delivery that the business will be closed within five (5) business days from the date of the notice unless the noncompliant taxpayer makes arrangements with the director to satisfy the tax delinquency.

(2) When the fifth day falls on a Saturday, Sunday, or legal holiday, the performance of the act is considered timely if it is performed on the next succeeding business day that is not a Saturday, Sunday, or legal holiday.

(d) A noncompliant taxpayer may avoid closure of the business by:

(1) Filing all delinquent reports and by remitting the delinquent tax including any interest and penalty; or

(2) Entering into a payment agreement approved by the director to satisfy the tax delinquency.

(e) After written notice delivered to a lottery retailer by the United States Postal Service or by hand delivery, the Director of the Department of Finance and Administration may pursue a remedy under this subchapter against a lottery retailer as a noncompliant taxpayer upon receiving a referral from the Arkansas Lottery Commission under 23-115-605.