DFA ALJ Denies Arm's Length Exception to Related-Party Interest Addback

The recent Administrative Decision of the Arkansas Department of Finance and Administration Office of Hearings and Appeals in dockets 20-109 and 20-110 (Dec. 9, 2019) highlights the challenge involved obtaining a refund on an amended return claiming an exception to the addback statute. Intercompany interest charges face substantial scrutiny, and taxpayers will need to be prepared to provide comprehensive documentation to claim an exception to add-back, and particularly if the intercompany interest is at a higher rate than the corporate group's third-party financing. [More]

Mike Parker and Matt Boch to Speak at the ASCPA Federal Tax Institute in Little Rock on December 6

DDH attorneys Mike Parker and Matt Boch will be speaking on state tax topics at the 58th annual Federal Tax Institute, which is sponsored by the Arkansas Society of CPAs and the Arkansas Bar Association. The conference, which covers an array of federal and state tax topics, will be at the Doubletree Hotel in downtown Little Rock on December 5 and 6. [More]

Charlie Collins Is the New Arkansas Commissioner of Revenue!

In a positive development for taxpayers, Arkansas Department of Finance and Administration Secretary Larry Walther announced today the appointment of Charlie Collins as the new Commissioner of Revenue. With his background in business and politics, he brings a fresh viewpoint to an important position, essentially the lead state tax administrator for Arkansas, that has historically been filled by individuals who "came up through the ranks" in the DFA Revenue Division. [More]

Register for the State Chamber's Arkansas Tax Conference on November 19

The Arkansas State Chamber of Commerce is convening its second Arkansas Tax Conference on Tuesday, November 19, 2019, at the Statehouse Convention Center. Register here! This biennial conference, which is held in years following legislative sessions, is the only conference that truly focuses on the issues surrounding the Arkansas tax world. It provides attendees with a chance to hear from and interact with leading tax administrators, policymakers, and practitioners. And coming off of 2019's Arkansas Tax Reform, there will be a lot to talk about, both about changes made and what to look for going forward. [More]

All Manufacturers Need to Be Claiming Reduced Sales & Use Tax Rates on Manufacturing Repair Parts and Services

Manufacturers—particularly smaller ones that do not have direct pay permits—need to make sure that they are claiming the benefit of the reduced sales and use tax rate on manufacturing repair parts and services. This is a significant benefit that refunds part of the state-level tax, as a phase-in before full exemption begins July 1, 2022. With a 12-month limitations period for making a claim, taxpayers need processes in place to assure that timely claims are being made. [More]