2.26 Ark. Code R. 51-807 - Federal Extension of Time

The following procedures for reviewing and granting extensions for filing Arkansas corporation income tax returns have been established for the Corporation Income Tax Section. Refer to 1. 26-18-505(a)(3)(A) and 1. 26-18-505(a)(3)(B) for important related information on 'state" extensions of time. Any federal extensions that have been taken should be applied first; Arkansas (that is, state) extensions should be applied subsequent to any federally granted extensions.

Due date for Arkansas corporation income tax returns:

All Arkansas income tax returns for corporations made on the basis of a calendar year shall be filed on or before the 15th day of May following the close of the calendar year. Such returns made on the basis of a fiscal year shall be filed on or before the 15th day of the fifth month following the close of the fiscal year.

Extension of time for filing an Arkansas income tax return with a federal extension - examples:

1) Any corporation who requests an automatic federal extension of time for filing a federal income tax return and attaches a copy of the request to the corporation's Arkansas income tax return shall automatically receive an extension of time until the due date of the federal income tax return to file the Arkansas return.

Example: Calendar year ending 12/31/93, therefore federal return's original due date is 03/15/94 and the Arkansas return's original due date is 05/15/94. If a copy of the federal six (6) month extension is attached to the Arkansas return, the Arkansas return must be filed on or before the federal extended due date of 09/15/94 (original federal due date 03/15/94, plus the six (6) month federal extension).

2) The Department may allow further time for filing income tax returns under the provisions for extensions in ACA 26-18-505. A corporation which receives a federal extension shall automatically receive an extension of time until the due date of the federal return, plus an additional 30, 60 or 90 day extension if requested (under ACA 26-18-505) before the due date of the federal extension. A copy of the federal extension must be attached to the first extension request under ACA 26-18-505. A second extension under ACA 26-18-505 of 30, 60, or 90 days may be granted if the corporation demonstrates the existence of extraordinary circumstances. The request for a second extension must be made before the due date allowed by the first extension.

Example: Calendar year ending 12/31/93, therefore federal return's original due date is 03/15/94 and the Arkansas return's original due date is 05/15/94. The corporation has received a federal extension and requests additional time beyond the federal extension to file its Arkansas return. The first extension request under ACA 26-18-505 must be filed on or before 09/15/94 (original federal due date of 03/15/94, plus a six (6) month federal extension). The request must be filed on Arkansas Form AR1055, stating the reason for the request and the requested time period (either 30, 60 or 90 days). If a 90 day extension is approved, the Arkansas return must be filed on or before 12/15/94 (original federal due date of 03/15/94, plus six month federal extension, plus 90 day Arkansas extension).

Example: Calendar year ending 12/31/93, with a six (6) month federal extension and a 90 day extension approved under ACA 26-18-505. Corporation requests an additional extension under ACA 26- 18-505 due to extraordinary circumstances. The request for an additional extension must be filed on or before 12/15/94 (original federal due date of 03/15/94, plus the six (6) month federal extension, plus the first 90 day extension under ACA 26-18-505). The request must be filed on Arkansas Form AR1055, stating the reason for the request and the requested time period (either 30, 60 or 90 days). If the additional 90 day extension is approved, the Arkansas return must be filed on or before 03/15/95 (original federal due date of 03/15/94, plus the six (6) month federal extension, plus the first 90 day extension under ACA 26-18-505, plus the second (or "additional") 90 day extension under ACA 26-18-505).

3) If an extension request is denied, the taxpayer shall file its Arkansas income tax return and pay any tax, penalty and interest due thereon at the rate prescribed by Arkansas law, calculated from the return's original due date until the date the return is filed and any tax due thereon is paid.

Notes

2.26 Ark. Code R. 51-807