Press Room: Tax Release

June 12, 2013

2013 Arkansas Tax Amnesty Program

Arkansas has passed a law that allows the Secretary of State to run an interest and penalty amnesty program for franchise taxes from September 1, 2013 to December 31, 2013. Participating taxpayers will not be subject to the payment of any penalties or interest on delinquent franchise taxes and are not subject to any further collection activity.

Amnesty will be granted to those who:

  1. Apply for it;
  2. Submit all applicable franchise tax reports and forms; and
  3. Pay taxes due.

Any failure to pay franchise taxes not eligible for amnesty when the taxes are due will invalidate the amnesty.

Below are the highlights of the Arkansas amnesty program:

  • The amnesty period is from September 1, 2013 through December 31, 2013.
  • Qualified taxes under the amnesty program include franchise taxes.
  • With completed application and payment of delinquent taxes, the state will waive penalties and interest owed on the delinquent tax debts.
  • The amnesty program does not cover any other taxes that are not listed above.

Who qualifies for the amnesty program?

  • Taxpayers who make a payment of franchise taxes for revoked entities during the amnesty period (September 1, 2013 to December 31, 2013).
  • “Revoked entities” are defined as corporations, whose business charter or authority was revoked by the Secretary of State on or before December 31, 2012 for failing to pay franchise taxes.

To qualify for amnesty, taxpayers must complete these steps during the period of September 1, 2013 through December 31, 2013:

  • Submit all applicable franchise tax reports and forms.
  • Pay the tax due as computed by the Secretary of State.

Failure to pay your franchise taxes not eligible for amnesty will disqualify you from the benefits of this program.  Furthermore, the franchise tax penalty for Arkansas is a $25 fine plus 10% annual interest on the tax and fine owed until paid.

WTAS professionals can assist Arkansas taxpayers in many ways during the amnesty period including, but not limited to, preparing the relevant amnesty applications, quantifying exposures, preparing tax returns and in some cases, attempting to settle issues directly with the Arkansas Secretary of State.