2010 Arkansas Code
Title 26 - Taxation
Subtitle 2 - Administration Of State Taxes
Chapter 18 - State Tax Procedure Generally
Subchapter 5 - Liability and Payment
§ 26-18-507 - Claims for refunds of overpayments.

26-18-507. Claims for refunds of overpayments.

(a) (1) Any taxpayer who has paid any state tax to the State of Arkansas in excess of the taxes lawfully due, subject to the requirements of this chapter, shall be refunded the overpayment of the tax determined by the Director of the Department of Finance and Administration to be erroneously paid upon the filing of an amended return or a verified claim for refund.

(2) This subsection does not include an action based on Arkansas Constitution, Article 16, 13.

(b) The claim shall specify:

(1) The name of the taxpayer;

(2) The time when and the period for which the tax was paid;

(3) The nature and kind of tax paid;

(4) The amount of the tax which the taxpayer claimed was erroneously paid;

(5) The grounds upon which a refund is claimed; and

(6) Any other information relative to the payment as may be prescribed by the director.

(c) The director shall determine what amount of refund, if any, is due as soon as practicable after a claim has been filed, but in no event shall the taxpayer be entitled to file a suit for refund under 26-18-406, until at least six (6) months have elapsed from the date of the filing of the claim for refund, or the director has issued a notice of denial of a claim for refund.

(d) Notwithstanding any provisions of the law to the contrary, a taxpayer who acts only as an agent of the state in the collection of any state tax shall be entitled to claim a credit or refund of such tax only if the taxpayer establishes that he or she has:

(1) Borne the tax in question;

(2) Repaid the amount of the tax to the person from whom he or she collected it; or

(3) Obtained the consent of the person to the allowance of the credit or refund.

(e) (1) (A) The director shall make a written determination and give notice to the taxpayer concerning whether or not a refund is due.

(B) If a refund is due, the director shall certify that the claim is to be paid to the taxpayer as provided by law or credited against taxes due or to become due.

(2) (A) If the director's determination is to disallow the claim for refund, in whole or in part, then the director shall forthwith issue a written decision giving notice to the taxpayer of the denial of the claim for refund.

(B) The taxpayer may seek administrative review and relief from the director's decision to deny a claim for refund by protesting as provided in 26-18-404 and 26-18-405.

(3) The taxpayer may seek judicial relief under the provisions of 26-18-406 from:

(A) A notice of a denial of a claim for refund issued by the director; or

(B) The director's failure to issue a written decision after the claim for refund has been filed for six (6) months.

(f) (1) This section shall not apply to taxes paid as a result of an audit or proposed assessment.

(2) Taxes paid as a result of an audit or proposed assessment may not be recovered unless 26-18-406 applies.