006.05.212-GR-77. REPORTS, RETURNS, AND REMITTANCES:
AR ADC 006.05.212-GR-77Arkansas Administrative Code
Ark. Admin. Code 006.05.212-GR-77
006.05.212-GR-77. REPORTS, RETURNS, AND REMITTANCES:
2. It is the duty of all taxpayers (sellers) to deliver to the Director, on or before the twentieth (20th) day of each month, a return showing the tax due, during the preceding calendar month. Date of mailing of a return as reflected by the postmark of the U.S. Postal Service is deemed to be the date of delivery. The following information must also appear on the return:
4. Although separate permits are required for each business location in Arkansas, every taxpayer shall file a single report combining all of the tax_due derived from sales at its Arkansas locations that are registered with the Director under the same Federal Employer's Identification Number (“FEIN”) or Social Security number. This provision applies regardless of whether the taxpayer is an individual, corporation, partnership, limited liability company, or other entity.
B. QUARTERLY REPORT. When the average amount of tax for which the taxpayer is liable for the previous fiscal year (July 1 through June 30) does not exceed $100.00 per month, the Director may notify the taxpayer that the taxpayer may file quarterly reports on or before July 20, October 20, January 20, and April 20. Taxpayers should continue to file monthly reports until they receive the notice to begin filing quarterly reports.
C. YEARLY REPORT. When the average amount of tax for which the taxpayer is liable for the previous fiscal year (July 1 through June 30) does not exceed $25.00 per month, the Director may notify the taxpayer that the taxpayer may file one yearly report on or before January 20 for the preceding twelve (12) month period. Taxpayers should not change their method of filing until they receive the notice to begin filing annually.
1. All taxpayers that have average net sales of $200,000.00 or more per month for a period of one (1) year must prepay their monthly gross receipts tax liability by electronic funds transfer. (See GR-77(E) and GR-77(F).) The Department's Sales and Use Tax Section will review a taxpayer's reported taxable sales for each month beginning in July and ending with the following June to determine if a taxpayer must make prepayments. This review is performed once each year by the Department.
3. Two (2) methods of making the electronic funds transfer prepayments are available to the taxpayer each month. The taxpayer is free to choose one method or the other for any period of time. The taxpayer is not required to commit to either prepayment method on a month-by-month basis. The two prepayment options are:
a. Two (2) equal electronic funds transfer prepayments calculated and prescribed by the Department. Each prepayment will be equal to forty percent (40%) of the taxpayer's monthly average gross receipts tax due for the preceding year. The two (2) payments will be due on or before the twelfth (12th) and twenty-fourth (24th) days of the current month. Any remaining balance of tax due for the current month should be remitted along with the taxpayer's gross receipts tax report (Form ET400), which must be filed on or before the twentieth (20th) day of the following month; or
b. One (1) electronic funds transfer prepayment calculated by the taxpayer of at least eighty percent (80%) of the total amount of tax that will be due for the current month. This single prepayment will be due on or before the twenty-fourth (24th) day of the current month. Any remaining balance of tax due for the current month should be remitted along with the taxpayer's gross receipts tax report (Form ST400), which must be filed on or before the twentieth (20th) day of the following month.
1. Each taxpayer whose monthly liability for gross receipts tax or compensating use tax exceeds $20,000.00 shall pay the taxes due by electronic funds transfer. Monthly liability is determined on the basis of average monthly liability for the preceding year. The transfer shall be made no later than 3:00 p.m. C.S.T. one (1) business day before the payment due date so that payment is received on or before the due date.
2. For purposes of this rule, “electronic funds transfer” means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, that is initiated through an electronic terminal, telephone, computer, or magnetic tape for the purpose of ordering, instructing, or authorizing a financial institution to debit or credit an account.
1. A taxpayer that is required to pay taxes by electronic funds transfer and fails to do so is subject to certain penalties and is disallowed the advantage of certain benefits otherwise allowed. Any such taxpayer who fails to pay the amount of tax required on or before the due date of such payment shall be assessed a penalty in the amount of five percent (5%) of the amount of tax due. This penalty is in addition to other penalties imposed under the Arkansas Tax Procedure Act, Ark. Code Ann. § 26-18-101 et seq. (See GR-85.) In addition to such penalties, any such taxpayer who is required to pay by electronic funds transfer and fails to do so by the due date of such payment shall not be allowed the benefit of the discount for prompt payment, or the discount for timely remitting the prepayments required of taxpayers whose average net sales exceed $200,000.00 per month.
(1) The taxpayer must have initiated a successful prenote or test transaction containing necessary information in cash concentration or disbursement plus tax payment addendum (CCD + TXP) format. The term “tax payment addendum format” means a technical format for the communication of limited tax remittance data accompanying a payment through the automated clearinghouse system and includes a list of standard tax-type and account-type codes;
3. The Department provides an alternative method for making a “same day” payment if an electronic funds transfer for payment of all remittances required under the provisions of Arkansas law fails for any reason. If an electronic funds transfer fails on its due date, then the taxpayer should contact the Department at (501) 682-7105 and provide the following information:
Credits
AUTHORITY: Ark. Code Ann. §§ 26-19-101 et seq.; 26-21-108; 26-52-501
Current with amendments received through May 15, 2024. Some sections may be more current, see credit for details.
Ark. Admin. Code 006.05.212-GR-77, AR ADC 006.05.212-GR-77
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