In a recent Arkansas Admin ruling, a taxpayers was held responsible for sales tax on a vehicle that they no longer own. The seller repossessed the taxpayer’s car and it was later found that the car was never registered in Arkansas. The taxpayer insisted that the car was not in their possession for more than 30 days. Unfortunately the State of Arkansas stated that based on the governing statutes the fact that possession of the vehicle was taken creates a tax liability.
Contact our state and local tax team for more information on this and other similar SALT issues.
A recent Arkansas Administrative Decision: A taxpayer relied on inaccurate verbal advice from the Arkansas Department of Finance and Admin. This taxpayer had called the Department in reference to the taxability of cleaning and labor services. Taxpayer was told this type of activity is not taxable. The taxpayer was audited and the verbal opinion became the basis of the taxpayer’s appeal. Arkansas stated that the taxpayer failed to obtain a letter of opinion regarding the taxability of said services. Therefore, the auditor’s initial determination stands.
Contact one of our state and local tax professionals for more information on taxability in Arkansas and beyond.
An Arkansas Administrative Law Court recently upheld an assessment for sales tax that was collected and not remitted. The taxpayer collected the tax for a service that he later learned was exempt from tax. After accounting errors resulted in the under-billing of his customer, the taxpayer used the tax proceeds to offset his accounting error. In addition to the assessment, the penalty for failure-to-file was upheld.
If you run into sales tax confusion in any state, or if you are facing penalties, contact your Eide Bailly state and local tax professional. We’re here to help!
The Arkansas Department of Finance and Administration recently assessed additional income tax on an individual as a result of a denied credit of taxes paid to another state. The taxpayer paid property taxes to another state and claimed them on Form AR1000TC which is used to report income tax paid to another state. The purpose of the form is to avoid double taxing the same income. An administrative court determined that property tax is not an income based tax, so the credit was properly disallowed.
For more information on income tax credits, contact your state and local tax professional.
The Arkansas supreme court upheld a circuit courts order certifying that online travel companies are providers of hotel accommodation and therefore are required to collect and remit sales tax. Read the desicion: