Ignorance of the Law is Not a Defense Against a Sales Tax Assessment

A taxpayer that performed solid waste removal was recently assessed for sales tax not collected on that taxable service.  The assessment was upheld by an Arkansas Administrative Judge who opined that lack of constructive knowledge of the tax levy or that other similar entities were not collecting the tax was not an adequate defense. Additionally, the Department of Finance and Administration was not estopped from enforcing the tax law because there was no evidence that its employee’s had made statements that the service was not subject to sales tax.

Sales tax can be tricky to navigate, but we’re here to help. Contact an Eide Bailly SALT professional today.

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