March 25, 2021
Legislation creating an elective passthrough entity tax was recently signed into law in Arkansas (L. 2021, H1209 (Act 362). Effective for tax years beginning on or after January 1, 2022, the 5.9% tax would be imposed on the net taxable income of an “affected business entity” that timely makes the requisite annual election. For specifics of the PTE tax, please reach out to the SALT team.
March 23, 2021
Arkansas Governor Asa Hutchinson has announced that, in conformance with the U.S. Treasury Department and Internal Revenue Service, the 2020 state individual income tax filing and payment deadline is extended from April 15, 2021, to May 17, 2021. The extension includes 2020 returns of Subchapter S corporations, fiduciaries and estates, partnerships, and composite returns. (Arkansas Executive Order (EO 21-06), Office of Arkansas Governor Asa Hutchinson, 03/19/2021;https://governor.arkansas.gov/images/uploads/executiveOrders/EO_21-06.pdf.)
March 24, 2020
The Arkansas Department of Finance and Administration has issued answers to a variety of frequently asked questions (FAQs) related to offices, services and tax payments in light of COVID-19. The deadline for filing and paying state income tax has not been extended. The Department is evaluating the impact of an extension on the state budget and will provide notice of whether the due date will be extended when a decision is made. The Department is still processing refund claims with no delays anticipated, and taxpayers concerned about a scheduled tax protest hearing at the Department’s offices can request that the hearing be conducted by phone.
More on Taxes and the Coronavirus Pandemic.
Disclaimer: Please note this is the information that is readily available at this time, it is subject to change so please consult your Withum tax advisor.