Rule
5
Tax Appeals
5-101
Applicability
(a) This rule applies in all administrative
adjudications conducted by the Commission and describes the process by which
the Commission hears appeal petitions challenging decisions of the Department
within the jurisdiction of the Commission.
(b) The Commission may determine the parties'
compliance with this rule.
(c)
Unless a statute or rule expressly precludes it, the presiding Commissioner may
waive application of these rules if, in the Commissioner's discretion, fairness
requires.
5-102
Assignment of Cases
(a) Once a
Petition is filed with the Commission, the Chief Commissioner or staff of the
Commission at the Chief Commissioner's direction shall designate a Presiding
Commissioner and assign the case to one Commissioner or to all available
Commissioners sitting en banc, depending on the nature and significance of the
case.
(b) It is presumed that:
(1) A controversy involving twenty-five
thousand dollars ($25,000) or less, exclusive of interest and penalties, should
be assigned to one Commissioner;
(2)
A controversy involving an expedited case under § 5-204 should be assigned
to one Commissioner; and
(3) A
controversy involving over two hundred fifty thousand dollars ($250,000),
exclusive of interest and penalties, should be assigned to all Commissioners
sitting en banc.
(c) The
Chief Commissioner may reassign a case.
(d) A party may request en banc consideration
by filing a motion under § 5-301. Such motion shall be decided by the
Chief Commissioner after consulting with the assigned Presiding
Commissioner.
5-103
Appearances and Representation
(a)
(1) Any
Taxpayer has the right, at his or her own expense, to be represented by an
authorized representative, who can be an attorney, certified public accountant,
or any other individual.
(2)
Alternatively, a Taxpayer may be self-represented, including
self-representation by an owner, officer, managing member, partner, trustee, or
similar individual with authority for an entity Taxpayer.
(b) A Taxpayer's authorized representative
must have a completed Power of Attorney form on file with the Commission before
representing a Taxpayer in a case. The Commission's form must be
used.
(c) The Department shall be
represented by an authorized representative licensed to practice law in the
state of Arkansas. The Department is not required to obtain approval from the
Commission for substitution of representatives.
(d) Service on an authorized representative
is the equivalent of service on the party represented.
(e) On written motion served on the party
represented and all other parties of record, the Presiding Commissioner may
grant a Taxpayer's authorized representative leave to
withdraw.
5-104
In-Person Hearings Outside of Little Rock
(a) The Commission may arrange for the use of
state or local government facilities to allow it to conduct hearings throughout
the state.
(b) A Taxpayer may
request, in writing in the petition or on motion, to have an in-person hearing
at a location more convenient than Little Rock.
(c) The Presiding Commissioner may grant such
request or may require that the Taxpayer choose between an in-person hearing in
Little Rock, a teleconference, or a videoconference.
(d) The Department may elect to appear by
teleconference or videoconference.
5-105
Consolidation
(a) If there are separate matters that
involve similar issues of law or fact and identical or related parties, the
matters may be consolidated if it appears that consolidation would promote the
just, speedy, and inexpensive resolution of the cases and would not unduly
prejudice the rights of a party, including the Taxpayer's right to
confidentiality.
(b) A Presiding
Commissioner may deconsolidate for any reasonable cause.
5-106
Filing and Service
(a) Unless a filing is rejected by the
Commission, a document is deemed filed on the earlier of:
(1) The date the document was submitted
electronically via the electronic filing system; or
(2) The date the document is received by the
Commission, whether by inperson delivery, United States Mail, or
otherwise.
(b) A filing
that is delivered to the Commission by United States Mail after the deadline
shall be deemed filed as of the postmark date.
(c) The Commission shall establish a system
for electronic filing and service. See § 5-601 et seq.
(d) Every pleading, except for the appeal
petition, and every other document filed for the case shall be served by the
filing party on the other party's authorized representative or, if the party is
not represented, on the party itself. Service shall be to the address provided
by the authorized representative or party.
(1)
If both parties or their authorized representatives are users of the
Commission's electronic filing system, service shall be as directed under the
electronic filing system.
(2) If
either the sending or the receiving party is not a user of the electronic
filing system, then service on the party shall be by:
(A) First class mail;
(B) Hand delivery; or
(C) Email if agreed to in writing by the
parties.
(3) The Taxpayer
shall not serve the appeal petition on the Department. Service by the Taxpayer
of the appeal petition upon the Department shall be void. The petition is
served on the Department by the Commission within fifteen (15) days of the
filing date of the petition electronically or, if the Commission cannot serve
the petition on the Department electronically, by
hand-delivery.
(e) A
party or authorized representative shall file with the Commission a notice of
any change of address, phone number, or email address within ten (10) days of
such change.
5-107
Computing Time
(a) Any period of
time set forth in these rules or in the Independent Tax Appeals Commission Act,
Arkansas Code §
26-18-1101 et seq., unless otherwise provided by law,
shall begin on the first day following the day of the act that initiates the
period.
(b) When the last day of
the period is a day on which the Commission is closed, the period shall run
until the end of the next business day.
(c) For the purpose of computing time to
respond, any document served on a day when the Commission is closed shall be
deemed served on the next business day.
5-108
Noncompliance
(a) If a Petition, Answer, Reply, or other
document is timely filed but determined by the Presiding Commissioner to be
noncompliant, the party shall be allowed fourteen (14) days from the date of
notice to cure, except that, for cure of a Power of Attorney, thirty (30) days
shall be allowed. The Presiding Commissioner may extend the deadline. The
corrected document shall be deemed filed on the date originally
submitted.
(b) Any deadline to
Answer, Reply, or otherwise respond to a filing is automatically tolled pending
cure of the noncompliant filing.
(c)
After the cure period has expired, a Petition, Answer, Reply or other document
that is noncompliant may be rejected by the Commission.
5-109
Ex Parte Communications
(a) A Commissioner shall not initiate,
permit, or consider ex parte communications or other communications made
outside the presence of the parties or their representatives concerning a
pending or impending matter.
(b)
When circumstances require it, non-substantive communication for scheduling,
administrative, or emergency purposes is permitted, provided the Commissioner
reasonably believes that no party will gain a procedural, substantive, or
tactical advantage.
(c) A
Commissioner may consult with other Commissioners or with employees of the
Commission or the Department of Inspector General, provided the Commissioner
does not abrogate the responsibility personally to decide the matter.
(d) If a Commissioner receives an
unauthorized ex parte communication bearing upon the substance of a matter, the
Commissioner shall notify the parties of the substance of the communication and
provide the parties with an opportunity to respond.
(e) The parties shall not communicate or
cause communication with employees of the Department of Inspector General
regarding cases, except in connection with such officers or employees providing
technical or administrative support to the Commission.
5-201
Appeal Petition
(a)
(1) Only
a Taxpayer or a Taxpayer's authorized representative can file an appeal
petition to the Tax Appeals Commission. The definition of "Taxpayer" limits
petitions to protesting certain actions or decisions of the Department that
have become final or without more will become final after the expiration of
time, such as a proposed assessment or a refund claim denial.
(2) The Commission cannot hear a petition
protesting an interim Department action such as day-to-day administration of an
ongoing audit.
(b) The
Taxpayer is responsible for meeting the petition deadline, and the Commission
cannot extend petition deadlines.
(1) Unless
otherwise provided by law, petitions must be filed within ninety (90) days of
the date of the action or decision of the Department.
(2) Certain actions of the Department can
result in expedited cases that impose petition deadlines as short as five
business (5) days. The petition shall indicate whether the case is required to
be expedited. See § 5-204, Expedited Cases.
(c)
(1) The
Commission encourages Taxpayers to submit petitions online at its website. An
appeal petition shall be filed using the Petition form approved by the
Commission or in such other form prepared by the Taxpayer.
(2) Regardless of the form used, the petition
shall:
(A) State facts sufficiently clear to
identify the Taxpayer, including name and address, and the Taxpayer's reasons
for opposing the proposed assessment, denial of a claim for refund, or other
action of the Department, including the relief sought; and
(B) Reasonably specify the matter, including
identifying the relevant Department account, and other identifying information
for consideration by the Commission.
(d) The petition shall include whether the
Taxpayer elects for the hearing to be in person, by teleconference, by
videoconference, or by a combination thereof, or no hearing with the matter to
be decided solely on written submissions.
(e) Petitions should not be made regarding
the following, for which the Commission does not have jurisdiction:
(1) A tax that is excepted from the Arkansas
Tax Procedure Act under Arkansas Code §
26-18-102;
(2) A question regarding the
constitutionality of the application of statutes to a Taxpayer or the
constitutionality of rules promulgated by the Department;
(3) A claim against enforcement of an illegal
exaction under Arkansas Constitution, Article 16, § 13;
(4) A claim that is the subject of pending
litigation; or
(5) A claim for a tax
not administered by the Department, including without limitation the following:
local ad valorem property tax, local advertising and promotion tax on lodging
or restaurants, federal tax, tax of another state, or tax of a foreign
country.
(6) An appeal from a final
assessment for which a notice of proposed assessment was previously
issued.
5-202
Answer
(a) The Department shall
file an answer to an appeal petition within sixty (60) days of receipt of the
petition from the Commission.
(b) An
answer is not required in an expedited hearing. See § 5-204.
(c) The answer shall state the Department's
reasons for opposing the Petition, in all or in part, such that the Commission
can understand the Department's position in the dispute and the Taxpayer can
fairly reply.
(d) An answer shall
not be filed in lieu of a motion for voluntary dismissal or for withdrawal from
consideration. See § 5-301.
5-203
Reply
The Taxpayer may respond to the answer by filing a reply within
thirty (30) days of service of the answer but is not required to do so. A reply
may not exceed the scope of the petition or answer.
5-204
Expedited Cases
(a) Certain types of cases are required by
law to be heard on an expedited basis, including shortened petition
deadlines.
(b) The petition shall
indicate that it is a type of case that must be expedited.
(c) For an expedited case, the hearing, if
any, shall be scheduled within the applicable deadline after the petition is
filed, and no other pleadings are required. The Department may elect to file an
answer.
(d) Joint refund offset
cases under Arkansas Code §
26-36-315 have specific requirements:
(1) The petition must include the following
items:
(A) A copy of the notice of refund
offset at issue.
(B) The signature
of the nondebtor taxpayer to the petition.
(C) A certification from the claimant agency
that the nondebtor taxpayer is not a debtor of the claimant agency.
(i) This certification may use the form
promulgated by the Commission or other form of certification issued by the
agency.
(ii) The Commission may
provide a Taxpayer with the relevant claimant agency contact information for
obtaining this certification.
(D) Tax documentation necessary to determine
each taxpayer's proportionate share of the refund. In general, copies of the
full Arkansas income tax return and all Forms W-2 or 1099 or other
documentation showing sources of income and tax payment are
needed.
(2) Taxpayers
cannot petition the Commission to dispute the validity or amount of the debt to
the claimant agency.
5-205
Amended Pleadings
(a) The Taxpayer may amend the appeal
petition at any time before the period for filing an answer expires, once per
petition.
(b) The Department may
amend the answer at any time before the period for filing a reply expires, once
per answer.
(c) Either party may
amend a petition, answer, or reply after the period for responding to a
pleading, if any, expires:
(1) With the
written consent of the adverse party; or
(2) With the permission of the
Commission.
(d) An
amended petition shall not confer jurisdiction on a matter that would otherwise
not come within the jurisdiction of the Commission, including matters that are
time-barred.
(e) Upon filing of an
amended pleading, the Commission shall provide deadlines to the parties for
filing an answer, reply, or both, as applicable.
5-206
Jurisdictional Objections or
Deficiencies
(a)
(1) Any objection to Commission jurisdiction
shall be raised by filing a motion to dismiss under § 5-301.
(2) The Commission may raise a jurisdictional
matter on its own.
(b)
All case deadlines, including the deadline for the Department to file an
answer, are automatically tolled upon the filing of such a motion to dismiss or
the Commission's notice or order raising a jurisdictional matter.
(c) For a case assigned to the Commission en
banc, whether the Commission has jurisdiction shall be decided en banc. For a
case assigned to a single Commissioner, that Commissioner shall
decide.
(d)
(1) After notice and an opportunity for a
response, if it is determined that the Commission lacks jurisdiction, the case
shall be dismissed. The dismissal shall explain the legal basis and shall be
published under § 5-502.
(2) If
it is determined that the Commission has jurisdiction, at least in part, then
an order shall be issued, including setting the deadline for any answer, and
the case shall proceed. Any jurisdictional objection and the decision thereon
shall be explained in the subsequent decision on the merits under §
5-501.
5-301
Motions
(a) All requests for
relief shall be by motion.
(1) Motions must be
in writing or made during a hearing or conference.
(2) Motions must fully state the action
requested and the grounds relied upon.
(3) Written motions shall be filed with the
Commission and served on the opposing party, consistent with §
5-106.
(4) When time allows, the
other party may, within seven (7) days of the service of the written motion,
file a response in opposition.
(5)
When time allows, within seven (7) days of the service of the response, the
moving party may, but is not required to, file a reply.
(6) The Commission may grant any motion not
responded to without further notice.
(7) The Presiding Commissioner may conduct
such proceedings and enter such orders as are deemed necessary to address
issues raised by the motion.
(8) A
party that disputes the Commission's jurisdiction or authority shall not file a
notice or other document declaring limitations of the Commission's jurisdiction
or authority. Any such dispute shall be brought before the Commission by
appropriate motion.
(b) A
motion for summary judgment is not allowed.
(c) The Presiding Commissioner may grant a
motion for continuance of a hearing or extension of a deadline for good cause
shown, except that the Commission cannot extend an appeal petition deadline. A
request for the extension of a deadline should be filed prior to the expiration
of the original deadline, but failure to timely file shall not preclude the
Presiding Commissioner from extending a deadline. Stipulations of the parties
for continuances will not be recognized.
(1)
Such a motion shall be made in writing or made during a hearing or
conference.
(2) The motion must
state the grounds to be considered and be made as soon as practicable and for
hearings, except in cases of emergencies, no later than five (5) days prior to
the date noticed for the hearing.
(3) In determining whether to grant a
continuance or extension, the Presiding Commissioner may consider:
(A) Prior continuances or
extensions;
(B) The interests of all
parties;
(C) The likelihood of
informal settlements;
(D) The
existence of an emergency;
(E) Any
objection;
(F) Any applicable time
requirement;
(G) The existence of a
conflict of the schedules of parties, their authorized representatives, or
witnesses;
(H) The time limits of
the request; and
(I) Other relevant
factors.
(4) The Presiding
Commissioner may require documentation of any grounds for continuance or
extension.
(d) A request
from a party that is not styled as a motion may be deemed a motion by the
Presiding Commissioner.
(e)
(1) A party or parties may move for voluntary
dismissal or withdrawal from consideration based on:
(A) Department withdrawal of the action or
decision at issue;
(B) Taxpayer
withdrawal of the petition;
(C)
Settlement by the parties under Arkansas Code §
26-18-1111;
(D) Mootness; or
(E) Any other resolution such that the
Commission does not need to reach a decision or jurisdictional dismissal in the
case.
(2) The filing of
such a motion automatically tolls any pending case deadlines, including the
deadline for the Department to file an answer.
5-302
Case Management
(a) In any case, the Presiding Commissioner
may direct the parties to appear for a conference.
(b) This conference may consider:
(1) The simplification of issues;
(2) The status of efforts to stipulate
pursuant to § 5-403;
(3) The
necessity or desirability of amendments to the petition, answer, or
reply;
(4) The possibility of
settlement;
(5) The scheduling of
the hearing and other case events or deadlines; and
(6) Such other matters as may aid in the
disposition of the action.
(c) After the conference, the Presiding
Commissioner may make an order which recites the action taken at the
conference, any amendments allowed to the pleadings and the agreements made by
the parties as to any of the matters considered and which limits the issues for
hearing to those not disposed of by stipulation or other agreement of the
parties; and such order, when entered, controls the subsequent course of the
case, unless subsequently modified.
5-303
On-Site Observation
(a) The Commission may conduct on-site
observation of tangible personal property, real property, and activities that
are relevant to a controversy.
(b)
On-site observation may occur only with the consent of the Taxpayer and with
all parties invited to observe and record.
(c) A party may request on-site observation
by motion. See § 5-301.
5-304
No Discovery
(a) There is no discovery in Commission
adjudications, including without limitation: interrogatories, requests for
admission, requests for production, depositions, and requests for
inspections.
(b) Neither the
Commission nor a party or authorized representative shall issue subpoenas to
the parties or outside parties in connection with cases before the
Commission.
(c) A Taxpayer may
contact the Department if the Taxpayer wants to obtain his or her tax records.
The Commission does not hear disputes concerning the production of documents by
the Department under the Freedom of Information Act of 1967, Arkansas Code
§
25-19-101 et seq., or Arkansas Code §
26-18-403.
5-305
Closure of Record in Written Submissions Cases
(a) For non-expedited cases to be decided on
written submissions without a hearing, after the reply has been filed or the
deadline to do so has passed under § 5-203, the Commission shall schedule
the closure of the written record, as a deadline for briefs, motions, or other
submissions.
(b) Once the record is
closed, the deadline for the Commission to issue a decision shall
commence.
5-401
Hearing Scheduling
(a) The
Presiding Commissioner shall schedule the hearing, which, except in expedited
cases, shall be held within ninety (90) days of the date the reply was filed or
the expiration of the deadline to file the reply. For expedited cases, see
§ 5-204.
(b) A Notice of
Hearing shall be provided to the parties within thirty (30) days of the filing
of the reply or the expiration of the deadline to file a reply.
(c) The Presiding Commissioner may order
hearing by a means other than the means elected by the taxpayer for good cause,
or when it is in the interest of justice.
5-402
Pre-Hearing, Hearing, and
Post-Hearing Procedures
(a) The
Presiding Commissioner presides at the hearing, presides over prehearing,
post-hearing, and other case conferences and matters, including if a hearing
has been waived altogether, and may rule on motions, require briefs, and issue
such orders as will ensure the orderly conduct of the case.
(b) Parties have the right to participate or
to be represented by an authorized representative in all hearings or other
proceedings related to their appeal.
(c) Pre-hearing conferences and reports may
be delegated by the Presiding Commissioner to Commission staff, provided that
staff may not rule on motions.
(d)
Parties have the right to introduce evidence that is probative of material
fact, cross-examine witnesses as necessary for a full and true disclosure of
the facts, and present evidence in rebuttal.
(e)
(1) The
Presiding Commissioner may require disclosure of all witnesses, identifying
those witnesses who may testify and those expected to testify, by a specified
date in advance of the hearing.
(2)
Advance disclosure of witnesses is never required in expedited cases under
§ 5-204.
(f) The
Presiding Commissioner is charged with maintaining the decorum of the hearing
and may refuse to admit, or may expel, anyone whose conduct is disorderly. The
Presiding Commissioner may limit the time allowed for arguments.
(g) The Presiding Commissioner will conduct
the hearing in the following manner:
(1) The
parties will be allowed to present their cases in the sequence determined by
the Presiding Commissioner, taking into consideration the burden of
proof.
(2) Each witness must be
sworn or affirmed by the Presiding Commissioner and be subject to examination
and cross-examination as well as questioning by Commissioners. The Presiding
Commissioner may limit questioning in a manner consistent with the
law.
5-403
Stipulation
(a) The parties to a
case shall, in good faith, make every reasonable effort to stipulate all
relevant and nonprivileged facts to the fullest extent to which a complete or
qualified agreement can or fairly should be reached.
(b) The Commission may decide a case based on
stipulated facts.
(c) Efforts to
stipulate are not required in expedited cases under § 5-204.
(d) If the amount of tax in dispute is less
than ten thousand dollars ($10,000), it is presumed that efforts to stipulate
are not reasonable and thus unnecessary, unless the Presiding Commissioner
specifies otherwise.
5-404
Evidence
(a) The Presiding Commissioner shall admit
relevant evidence, including hearsay, if it is probative of a material fact in
controversy.
(b) Irrelevant,
immaterial, and unduly repetitive evidence shall be excluded.
(c)
(1) The
Presiding Commissioner may require prefiling of exhibits by a specified date in
advance of the hearing.
(2)
Prefiling of exhibits is never required in expedited cases under §
5-204.
(d) Spreadsheets
or workbooks shall be provided electronically. See §
5-604.
5-405
Recording of Hearing
(a) The
parties may record the hearing. Only audio recordings shall be permitted.
Broadcasting of hearings in any form is prohibited.
(b) If a party desires to have a written
transcript made of the hearing, the requesting party shall bear all costs of
having it prepared. The Commission is not required to prepare a transcript of a
hearing.
(c) A party may arrange for
a hearing to be reported verbatim by a court reporter. Such party shall pay all
associated costs and provide notice to the Commission and the other party prior
to the hearing. Such party shall provide the other party a verbatim copy, if
transcribed, at no cost to the recipient.
(d) The Commission may record the hearing and
may provide a copy of the recording to the parties upon
request.
5-406
Failure to Appear at Hearing or Prosecute Case
(a) If a party fails to appear or participate
in a hearing after proper service of notice, the Commission may proceed with
the hearing and render a decision notwithstanding the party's failure to appear
or participate.
(b)
(1) If a taxpayer stops communicating with
the Commission or becomes unreachable, the Presiding Commissioner may issue a
warning to the taxpayer of potential dismissal for nonprosecution, which
provides at least ten (10) days to respond.
(2) If the taxpayer fails to respond to the
warning, the Presiding Commissioner may issue an Order to Show Cause why the
case should not be dismissed for nonprosecution, which provides at least ten
(10) days to respond.
(3) If the
taxpayer fails to respond to the Order to Show Cause, the Commission may
dismiss the case.
(4) Any warning or
order to show cause issued under this subdivision shall be served on taxpayer
by First Class mail and by electronic means if
available.
5-407
Bifurcation of Proceedings
(a) If the Commission determines that a
resolution of a threshold issue, such as a statute of limitations, may dispose
of a case, the Commission may bifurcate proceedings to hear and decide the
threshold matter.
(b) If the
determination of the threshold issue does not resolve the case, then an order
shall be issued, and the case shall proceed. The determination of the threshold
issue shall be explained in the subsequent decision on the merits under §
5-501.
5-501
Issuance of Decision to the Parties
(a) The Commission will issue a written
decision. The decision will include findings of fact and conclusions of law. It
will grant or deny relief and issue orders as the Commission deems appropriate
to carry out the decision.
(b) The
Commission shall serve the decision on the parties. Service of the decision is
the conclusion of substantive Commission proceedings to adjudicate the appeal
petition.
(c) The decision shall be
issued within ninety (90) days of the close of the hearing, submission of final
post-hearing brief, or other close of the record, unless it is an expedited
case with a shorter deadline. The Commission may extend this deadline for good
cause by submitting a letter to the parties.
(d) A party may seek judicial relief by
following the procedures stated in the Arkansas Tax Procedure Act, Arkansas
Code §
26-18-101 et seq. Neither the Commission nor any Commissioner shall
be made a party in a suit for judicial relief.
(e) A party may, within seven (7) days of the
decision, move for reconsideration to correct a clear error of fact or law.
Such a motion is optional and not required to seek judicial relief.
(f) The Commission may correct an error in a
decision on its own initiative.
5-502
Redaction and Publication of
Decision
(a) The decision shall be
published by the Commission on its website.
(b) Before publication of a decision,
Taxpayer-identifying information shall be redacted.
(1) Taxpayer-identifying information includes
Taxpayer names, identification or account numbers, addresses, and other
information the disclosure of which would lead to identification of the
Taxpayer.
(2) Taxpayer-identifying
information does not include facts about the Taxpayer's activities or
operations, particularly those facts that serve as the basis of the decision,
unless publication of such facts would allow the public to identify the
Taxpayer.
5-503
En Banc Decisions
(a) In an en
banc case, a Commissioner may join in, concur with, or dissent from a decision,
in all or in part.
(b) A decision or
portion of a decision in which two or more Commissioners join creates binding
precedent as provided in Arkansas Code §
26-18-1116(d).
(c)
(1)
Where only two Commissioners are available, if the vote on the outcome of all
or part of the case is split, then such a split shall be resolved by sustaining
that part of the Department's action or decision that requires Taxpayer to bear
the burden of proof and by resolving in favor of the Taxpayer that part of the
Department's action or decision that requires the Department to bear the burden
of proof.
(2) If there is
disagreement between the participating commissioners as to which party bears
the burden of proof under subdivision (c)(1) of this rule, the party bearing
the burden shall be determined by the Presiding
Commissioner.
5-601
Scope and Application of
Electronic Filing
(a) Use of the
electronic filing system for filings after the petition is required for an
authorized representative, except for an authorized representative with a
disability that prevents the use of the electronic filing system. The petition
should be filed electronically if possible.
(b) Use of the electronic filing system by a
Taxpayer without an authorized representative is encouraged but not
required.
(c) Filings shall be
submitted by mail, hand delivery, or email in the event of electronic filing
system errors or other technical problems under § 5-606.
(d) The Commission shall electronically file
or issue any notice, order, decision, or other document prepared by the
Commission. The Commission shall provide a paper copy of such document to any
party not using the electronic filing system.
(e) An electronic document is the official
record and has the same force and effect as a document filed
conventionally.
(f) Conventional
documents shall be scanned by the Commission and made part of the electronic
record. Once scanned, conventional paper documents may be
destroyed.
5-602
Time of Filing
(a) An electronic
document is submitted when the transmission to the electronic filing system is
completed. It is the user's responsibility to confirm that the transmission of
the electronic document was completed.
(b) After review and acceptance by the
Commission, an electronic document shall be considered filed as of the date and
time of submission.
(c) Notice of a
rejection of a document will be provided to the filer electronically.
(d) The electronic filing system shall record
the date of filing, which shall have the same force and effect as a manually
affixed stamp.
(e) Any document
received by the electronic filing system before midnight shall be deemed filed
on that date.
5-603
Signatures
(a) An electronic
document shall be deemed to be signed by the registered user who files
it.
(b) An electronic document may
be signed by scanned or digital signature, or, for signatures other than a
Taxpayer's signature on a Power of Attorney form, a typewritten name may be
used.
5-604
Format
of Documents
(a) Electronic documents
filed by the parties shall be legible and shall not contain hyperlinks to
external sources.
(b) Upon request
of the Commission, spreadsheets or workbooks shall be provided in both a static
format readable by a document viewer, such as portable document format, and in
an unlocked format compatible with commonly used spreadsheet
software.
5-605
Registration Requirements
Users shall furnish at least one email address for electronic
service and other notices.
5-606
Technical Failures
(a) A technical failure of the electronic
filing system shall excuse an untimely filing.
(b) A user's technical problem that prevents
submitting an electronic filing is not a technical failure of the electronic
filing system. Users that encounter difficulties with their systems shall use
alternative means to comply, including conventional filing.
(c) If a technical failure of the electronic
filing system or other technical problem prevents a user from submitting an
electronic filing, documents shall be submitted and served
conventionally.
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Instructions: Petition
(Rev. 10/24)
General Instructions for Filing a Petition
The Tax Appeals Commission recommends that this petition be
filed online at
https://ig.arkansas.gov/tax-appeals-commission/petition/.
Alternatively, file this form:
(1) by
email to tac@arkansas.gov,
(2) in
person, Monday through Friday between 8:00 a.m. and 4:30 p.m. (except on state
government holidays); or
(3) by U.S.
mail to:
Arkansas Tax Appeals Commission
900 West Capitol, Suite 310
Little Rock, AR 72201
There is no fee for filing this petition.
For more information concerning the appeal process and the
Commission's Rules of Procedure, see the Commission's website,
https://tac.arkansas.gov.
Questions regarding this form or the appeal process should be
directed to the Commission by email to tac@arkansas.gov, phone at 501-682-2741,
or mail at the above address. Commission staff can provide information about
tax appeal procedures and requirements but cannot provide tax or legal
advice.
Specific Instructions
Part I
- Taxpayer Information
Enter the information of the taxpayer. If the taxpayer is an
entity (corporation, partnership, LLC, trust, etc.), enter the entity's
information. If phone number or email is provided, you consent to be contacted
by the Commission by that method.
Part
II
- Action or Decision of the Department
Attach a copy of the Department of Finance and
Administration (DFA) notice or other DFA action or decision that you are
appealing, including any associated documents such as an
explanation of adjustment or a summary of findings. The Tax Appeals Commission
does not have access to DFA records and cannot look up your account.
Letter ID, Account ID and Tax Period(s)
Provide this information about the DFA action or decision,
which can be found on the notice issued to you by DFA.
Tax Type at Issue
Mark the relevant tax type. If the tax type you are appealing
is not listed, mark "Other" and write in the tax type.
Type of DFA Decision Being Appealed
See the relevant appeal statute for applicable law and
requirements. In most cases, a petition must be filed within ninety
(90) days from the date DFA issues a proposed assessment, refund claim denial,
or other action or decision being appealed. Appeals of certain actions or
decisions are expedited with shorter appeal deadlines, such as business
closures, joint refund offsets, and permit denials or cancellations. The notice
you received from DFA indicates the DFA action or decision to appeal. Check the
box next to the relevant appeal type and attach a copy of the DFA
notice. If the DFA action or decision you wish to appeal is not
listed, mark "Other," write a description of the action you wish to appeal, and
attach a copy of the DFA notice.
For Joint Refund Offsets, also attach a completed Joint Refund
Offset Petition Addendum, including supporting documentation.
Related Matter Pending
Separate matters that involve similar issues of law or fact and
identical or related parties are typically consolidated into a single
proceeding. If your appeal relates to an existing appeal with the Commission,
enter the taxpayer name and the docket number in the spaces
provided.
Part III
-
Reasons for Your Appeal
Identify what specific items you are disputing, stating
relevant facts and providing your reasons for opposing the action or decision
of DFA. Attach additional pages if needed. If items in dispute are numerous,
provide supporting schedules of items in dispute. You may also attach relevant
documentary exhibits. For your reasons, provide, if known, the law, rules, or
cases in support of your arguments. Do not simply state "assessment is too
high" or "assessment is wrong"; instead, specifically state what you are
disputing and explain why you believe relief should be granted. Note that the
Commission must follow Arkansas law and cannot waive application of the law for
financial or personal hardship. The Commission may reject your appeal if
sufficient information is not provided.
Part IV
- Authorized
Representative
Representation by an attorney, CPA, or other person is allowed
but not required. If represented, enter the representative's information on the
form. If multiple representatives, list the lead representative. For a
representative to sign the petition or otherwise represent a taxpayer, a
completed Power of Attorney form must be provided, and the Commission's form
must be used. The Power of Attorney form can be obtained from the Commission's
office or online at https://tac.arkansas.gov. If a
representative is designated, attach the completed Power of Attorney form to
the petition.
Part V
-
Hearing Preference
Indicate whether you elect for your hearing to be in-person in
Little Rock, in-person at a location closer to Taxpayer, by teleconference, by
videoconference, or by a combination thereof. In-person hearings at locations
outside of Little Rock are subject to special scheduling considerations and are
not allowed for expedited proceedings. A decision on written documents only,
with no hearing, can be selected for appeal of a proposed tax assessment, a
refund claim denial, another DFA action with a non-expedited appeal, or a joint
refund offset. A hearing is required for appeal of business closure, a permit
denial or cancellation, or other DFA action with an expedited appeal (excepting
joint refund offsets as noted above).
If you request to have an in-person hearing at a location other
than Little Rock, the presiding commissioner may grant such request or may
require that you choose between an in-person hearing in Little Rock, a
teleconference, or a videoconference.
Part
VI
- Signature
Sign your name and enter the other information requested in the
spaces provided. If signing for an entity, you must be authorized under
Arkansas law to act on behalf of the entity (owner, officer, trustee, etc.) and
must enter your title in the space provided. If the appeal relates to a joint
tax liability of married taxpayers, either spouse may sign.
NOTE: After the initial petition is filed,
electronic filing of all documents is required of all authorized
representatives (unless a disability prevents it) and is encouraged for all
self-represented taxpayers. Login credentials and instructions will be emailed
to you after receipt and processing of this form by the Commission.
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Instructions: Petition Addendum - Joint Refund
Offset
(Rev. Oct. 2024)
General Instructions
This petition addendum and the related documents must be
included with any petition seeking spousal relief from a proposed joint refund
offset. Only spousal relief claims can be heard. The Tax Appeals
Commission cannot hear an appeal of the validity of the debt listed as owed by
Debtor Spouse or whether the debt has been paid.
"Nondebtor Spouse" refers to the spouse not identified as owing
a debt to the Claimant Agency, who is the taxpayer petitioning for spousal
relief from a Joint Refund Offset. "Debtor Spouse" refers to the individual
identified as owing the debt, with whom the Nondebtor Spouse filed a joint
return.
"Claimant Agency" is the governmental agency or entity that has
submitted a debt to the Department of Finance and Administration for collection
by tax refund offset. "DFA" means the Department of Finance and
Administration.
Information concerning the appeal process and the Commission's
Rules of Procedure is available online at https://tac.arkansas.gov. Questions
regarding this form should be directed to the Commission at tac@arkansas.govor
501-682-2741. Questions about the debt itself should be directed to the
Claimant Agency.
Specific Instructions
Part I
- Taxpayer and Case
Information
Enter the information for the Nondebtor Spouse seeking relief
and for the Debtor Spouse identified in the DFA Notice of Refund Offset,
including the Claimant Agency and the DFA Letter ID for the Notice. (Listing on
this form as the Debtor Spouse does not constitute any admission or evidence of
the debt.) If you have already filed a petition, provide the docket number for
your case.
Part II
-
Calculation of Refund Attributable to Each Spouse
The total refund claimed on a joint return can be attributed to
one or the other spouse, or each spouse could share in the refund depending on
the tax incurred, tax withheld as reported on Forms W-2 or 1099, and payments
made. Only the portion of the refund that is attributable to the Nondebtor
Spouse is eligible for relief. Use the worksheet to calculate the amount of the
total refund that is attributable to each spouse. References to the related
lines on your return are provided in the worksheet. The amounts you enter in
the "Total" column must agree with the amounts shown on your return. Taxes,
credits, and payments should be assigned to the relevant individuals or split
where appropriate. Nonrefundable credits exceeding an individual's
proportionate share of tax should be assigned to the other
spouse.
Part III
-
Checklist of Required Items
Include with the petition and this addendum each listed item.
If any are missing, your petition could be rejected.
i A completed Claimant Agency
Nondebtor Certification form or equivalent document from the Claimant Agency
certifying that the Nondebtor Spouse is not a debtor of the Claimant
Agency.
ii Documents to support the amount
of refund that is attributable to the Nondebtor Spouse. This documentation must
support the share of the Nondebtor Spouse's payment of tax and the resulting
amount of the joint refund that is not subject to setoff. Include a complete
copy of the individual income tax return (typically form AR1000F), all forms
W-2 and 1099, and any other documentation that supports the credits allowable
for each spouse, and the Arkansas income taxes owed and paid by each
spouse.
iii A copy of the Notice of Refund
Offset issued by DFA, which is needed to confirm which spouse is listed as
owing the debt, what agency is the Claimant Agency, and the amount of the
proposed offset.
iv The Nondebtor Spouse must sign
the petition. The Debtor Spouse's signature is not needed or sufficient.
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Instructions: Power of Attorney and Declaration of
Representative
General Instructions
Purpose of Form
Use this Power of Attorney (POA) form to authorize an
individual to represent you before the Tax Appeals Commission (TAC). You may
authorize any individual 18 years of age or older to represent you. Authorizing
someone to represent you does not relieve you of your tax obligations.
Questions regarding this form should be directed to the
Commission at the address below (under How to File) or by
phone at 501-682-2741.
How To File
For new cases about to be filed, the POA can be uploaded by
attaching it to the online petition form, which can be found at
https://ig.arkansas.gov/tax-appeals-commission/petition/.
For cases already assigned a docket number, the POA can be emailed to the
case-specific email address. Other alternatives are to email the POA to
tac@arkansas.gov, or mail or hand-deliver the POA to:
Tax Appeals Commission
900 West Capitol, Suite 310
Little Rock, AR 72201
Authority Granted
Except as specified below, this power of attorney authorizes
the listed representative(s) to receive confidential tax information and appear
on your behalf before the Tax Appeals Commission. This authorization does not
include the power to (1) substitute or add another representative or (2)
disclose tax returns or return information to a third party.
Revocation or withdrawal of a power of
attorney
On written motion served on the party represented and all other
parties of record, the presiding commissioner may grant an authorized
representative leave to withdraw for good cause shown.
Address Changes
If the email address or USPS address for either you or your
representative changes, do not file a new POA. Instead, file a written
notification with the Commission that includes the new information.
Specific Instructions
Part I.
Power of Attorney
Line 1. Taxpayer Information
Enter the information requested. Do not enter information about
any other person, including your spouse. A separate Power of Attorney should be
submitted for each taxpayer.
Individuals. Enter your name, your street address
or post office box, and the tax period(s) from the notice you received from the
Department of Finance and Administration. If you, your spouse, or former spouse
are submitting POAs in connection with a joint return that you filed, you must
each submit separate POA forms even if you are authorizing the same
representative(s) to represent you.
Corporations, associations, or partnerships. Enter
the name, business address, and the tax period(s) from the notice you received
from the Department of Finance and Administration. For consolidated returns,
only the parent corporation information is required on line 1.
Exempt organizations. Enter the name and address
of the organization, and the tax period(s) from the notice you received from
the Department of Finance and Administration.
Trusts. Enter the name, title, and address of the
trustee, and the tax period(s) from the notice you received from the Department
of Finance and Administration.
Deceased individuals or estates. Enter the name of
the decedent; the name, title, and address of the decedent's executor or
personal representative; and the tax period(s) from the notice you received
from the Department of Finance and Administration.
Line 2. Representative(s)
Enter the information requested about your representative(s).
You may name any individual 18 years of age or older as your representative. If
you want to name more than two representatives, submit additional POA forms.
Your authorization of an eligible representative will allow that individual to
receive your confidential tax information.
Line 3. Taxpayer Declaration and Signature
The POA must be manually signed by the taxpayer. The filed POA
can include a copy or scan of the manual signature.
Individuals. You must sign and date the POA. If
you filed a joint return, your spouse must execute his or her own POA on a
separate form to designate a representative. For Taxpayer individuals who are
under 18 years of age and cannot sign, the individual's parent or guardian may
sign on their behalf. Other individuals may sign for the Taxpayer if a POA form
has been signed by the parent or guardian authorizing the other individual(s)
to sign on behalf of the Taxpayer.
Corporations or associations. An officer with the
legal authority to bind the corporation or association must sign and enter his
or her title.
Partnerships. One partner authorized to act in the
name of the partnership is required to sign and enter his or her title. A
partner is authorized to act in the name of the partnership if, under state
law, the partner has authority to bind the partnership.
Estates. If there is more than one executor, only
one co-executor having the authority to bind the estate is required to
sign.
All others. If the Taxpayer is a dissolved
corporation, deceased individual, insolvent, or a person for whom or by whom a
fiduciary (a trustee, guarantor, receiver, executor, or administrator) has been
appointed, an individual with the authority to bind the entity is required to
sign.
Part II.
Declaration of Representative
The representative(s) you name must sign and date this
declaration and enter the designation (items (a)-(d)) in the order listed. An
authorized representative must certify review of the Arkansas Tax Appeals
Commission Rules of Procedure, which are found at:
https://ig.arkansas.gov/tax-appeals-commission/legal-information-rules-and-self-help/.
In addition, the representative(s) must include the requested
information in the column headed "Licensure state(s) and license number(s), if
applicable."
