A. Failure to comply with any requirement of Ark. Code Ann. § 26-52-101 et seq. or with any provision of these rules shall constitute sufficient grounds for cancellation of any permit issued under the authority of the Code or the rules.

B. The permit of any taxpayer who has filed twelve (12) consecutive monthly reports reporting zero sales shall automatically expire. This does not apply to permits issued to taxpayers who are not primarily engaged in selling taxable goods or services. The Director shall notify the taxpayer in writing that the permit has expired. The taxpayer shall return the permit to the Director within thirty (30) days of the date of the notice. Any taxpayer who has received notice but reasonably expects to engage in business within the twelve (12) month period following the notification may petition the Director to retain the permit. The Director may allow any taxpayer who demonstrates to the Director's satisfaction that the taxpayer will require a permit to retain the permit.