XII. Tax Law

• Library: Guide to Arkansas Statutes of Limitations (2022 Ed.)

A. ARKANSAS TAX PROCEDURE ACT. A.C.A. § 26-18-101 et seq.

1. Judicial relief for taxpayer. After the issuance and service on the taxpayer of the final assessment of a deficiency in tax that is not protested by the taxpayer under A.C.A. § 26-18-403, or a final determination of the hearing officer or the Director of the Department of Finance and Administration under A.C.A. § 26-18-405, a taxpayer may seek judicial relief from the final determination or assessment by: (1) paying the entire amount of state tax due for any taxable period or periods covered by the final assessment within one (1) year of the date of the final assessment and filing suit to recover that amount within one (1) year of the date of payment. The director may proceed with collection activities, including the filing of a certificate of indebtedness as authorized under A.C.A. § 26-18-701, within thirty (30) days of the issuance of the final assessment for any assessed but unpaid state taxes, penalties, or interest owed by the taxpayer for other taxable periods covered by the final assessment while the suit for refund is being pursued by the taxpayer for other taxable periods covered by the final assessment; (2) filing with the director a bond in double the amount of the tax deficiency due within thirty (30) days of issuance and service on the taxpayer of the final assessment and by filing suit within thirty (30) days thereafter to stay the effect of the director's determination; or (3) filing suit to recover assessed tax, penalty, and interest paid prior to the time for issuance of the final assessment within one (1) year of the date of the final determination of the hearing officer or the director under A.C.A. § 26-18-405. A.C.A. § 26-18-406(a) (this statute is no longer effective on 1/1/2023)
2. Time limitations for assessments, collections, refunds, and prosecution.

a. In general. Except as otherwise provided in this chapter, no assessment of any tax levied under the state tax law shall be made after the expiration of three (3) years from the date the return was required to be filed or the date the return was filed, whichever period expires later. The Director of the Department of Finance and Administration shall not begin court proceedings after the expiration of the three-year period unless there has been a previous assessment for the collection of the tax. A.C.A. § 26-18-306(a).
b. After amended filing. Notwithstanding the provisions of A.C.A. § 26-18-306(a), if the amount of

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