A taxpayer who has paid any tax to the State of Arkansas through error of fact, computation or mistake or law, in excess of the taxes lawfully due, shall be refunded the overpayment of the tax determined by the director to be erroneously paid upon the filing of an amended return or a verified claim for refund. These claims shall be subjected to certain requirements and other information relative to the overpayment.

If a refund is determined, the director shall certify that the claim is to be paid to the taxpayer as provided by law or credited against taxes due or to become due.

A “verified claim” for credit or a refund may be the signed copy of a previously filed return accompanied by a letter of explanation as to the reason the refund or credit request is being made. Upon request by the Department, it shall be the burden of the taxpayer to prove that all claimed prior income tax or estimated tax payments that are reflected on an amended return or verified claim for credit or refund were made. The Department will accept legible copies of the front and back of canceled checks as proof of prior payments.

The taxpayer may seek judicial relief, according to ACA 26-18-406, if the written decision of the director denies the claim in whole or part.

A taxpayer must file suit within ninety (90) days after the issuance of the director's written decision. The suit may be filed in Pulaski County Chancery Court or the chancery court of the county in which the taxpayer resides or has his principal place of business. A written decision of the director on a refund becomes final and not subject to suit ninety-one (91) days after it is issued.

If the director fails to issue a written decision, and has not acted on the claim after at least six (6) months have expired from the date of the filing of the claim for refund, the taxpayer may file suit in either Pulaski County Chancery Court or the county in which he lives.