Administrative Decision Reminds Taxpayers that You Can Call and Talk to DFA, but Don’t Rely on Oral Advice

By T.J. Lawhon

In a case before the Arkansas Department of Finance and Administration (“DFA”) Office of Hearings and Appeals, DFA issued an Administrative Decision in Docket No. 18-211 (Mar. 12, 2018) regarding a matter of reliance upon DFA’s communication with a taxpayer. The taxpayer protested an assessment of sales tax regarding the taxability of its business transactions. The taxpayer is a retail repair and installation business, including inspection and monitoring services. DFA contented that some of the taxpayer’s transactions were taxable, but many were exempt. Specifically, DFA determined that the taxpayer had failed to collect sales tax on the cleaning/calibration and labor performed on certain personal property. [More]