1998-1 - Comprehensive Corporation Income Tax Regulations

  1. Rule 2-8-101 - BIOTECHNOLOGY DEVELOPMENT AND RESEARCH (1.2-8-101)
  2. Rule 15-4-1224 - COUNTY AND REGIONAL INDUSTRIAL DEVELOPMENT CORPORATION ACT (1.15-4-1224)
  3. Rule 15-4-1704 - ARKANSAS ENTERPRISE ZONE ACT (1.15-4-1704)
  4. Rule 15-5-1301 - AFFORDABLE NEIGHBORHOOD HOUSING (1.15-5-1301)
  5. Rule 26-18-208 - TAX PENALTIES, version 2 (1.26-18-208(6)(A) to 1.26-18-208(6)(B)(iii))
  6. Rule 26-18-306 - REFUND AND CREDIT CLAIMS, version 2 (1.26-18-306(i)(1))
  7. Rule 26-18-404 - TAXPAYER RELIEF, version 2 (1.26-18-404)
  8. Rule 26-18-406 - TAXPAYER RELIEF, version 2 (1.26-18-406)
  9. Rule 26-18-505 - EXTENSION OF TIME FOR FILING RETURNS, version 2 (1.26-18-505(a)(3)(A) to 1.26-18-505(a)(3)(B))
  10. Rule 26-18-507 - REFUNDS OF OVERPAYMENTS, version 2 (1.26-18-507(a))
  11. Rule 26-51-102 - CORPORATION INCOME TAX DEFINITIONS, version 2 (1.26-51-102(5) to 2.26-51-102(17)(B))
  12. Rule 26-51-204 - RAILROADS AND PUBLIC UTILITIES (1.26-51-204 to 3.26-51-204)
  13. Rule 26-51-205 - CORPORATION INCOME TAX RATES (1.26-51-205)
  14. Rule 26-51-303 - EXEMPT ORGANIZATIONS (1.26-51-303)
  15. Rule 26-51-401 - ACCOUNTING METHODS, version 2 (1.26-51-401(a) to 1.26-51-401(b))
  16. Rule 26-51-402 - BASIS FOR DETERMINING TAX LIABILITY, version 2 (1.26-51-402(a))
  17. Rule 26-51-404 - GROSS INCOME GENERALLY, version 2 (1.26-51-404(a)(1) to 1.26-51-404(b)(11))
  18. Rule 26-51-411 - GAIN OR LOSS - SALES OF PROPERTY, version 2 (1.26-51-411 to 1.26-51-411(e))
  19. Rule 26-51-412 - GAIN OR LOSS - EXCHANGE OF PROPERTY, version 2 (1.26-51-412(a) to 5.26-51-412(c))
  20. Rule 26-51-413 - CORPORATE LIQUIDATIONS, version 2 (1.26-51-413 to 2.26-51-413)
  21. Rule 26-51-414 - DEFERRED COMPENSATION PLANS, version 2 (1.26-51-414)
  22. Rule 26-51-416 - DEDUCTIONS - TAXES, version 2 (1.26-51-416)
  23. Rule 26-51-419 - DEDUCTIONS - CHARITABLE CONTRIBUTIONS, version 2 (1.26-51-419)
  24. Rule 26-51-423 - DEDUCTIONS - EXPENSES, version 2 (1.26-51-423(b))
  25. Rule 26-51-424 - DEDUCTIONS - LOSSES, version 2 (1.26-51-424(a)(1) to 5.26-51-424(a)(1))
  26. Rule 26-51-425 - DEDUCTIONS - WORTHLESS DEBTS, version 2 (1.26-51-425 to 3.26-51-425)
  27. Rule 26-51-426 - DEDUCTIONS - RESERVE FOR BAD DEBTS OR LIABILITIES (1.26-51-426)
  28. Rule 26-51-427 - DEDUCTIONS - NET OPERATING LOSS (NOL), version 2 (1.26-51-427 to 1.26-51-427(3)(C))
  29. Rule 26-51-428 - DEDUCTIONS - DEPRECIATION AND EXPENSING OF PROPERTY, version 2 (1.26-51-428(a) to 1.26-51-428(c))
  30. Rule 26-51-440 - FEDERAL SUBCHAPTER M, version 2 (1.26-51-440)
  31. Rule 26-51-440 - FASITs, version 3 (2.26-51-440 to 7.26-51-440)
  32. Rule 26-51-509 - YOUTH APPRENTICESHIP PROGRAM (1.26-51-509)
  33. Rule 26-51-701 - MULTISTATE BUSINESS INCOME (1.26-51-701 to 3.26-51-701)
  34. Rule 26-51-702 - APPORTIONMENT - DETERMINATION OF NEXUS (1.26-51-702 to 11.26-51-702)
  35. Rule 26-51-704 - NONBUSINESS INCOME (1.26-51-704)
  36. Rule 26-51-709 - APPORTIONMENT - BUSINESS INCOME (1.26-51-709)
  37. Rule 26-51-710 - PROPERTY FACTOR (1.26-51-710.1 to 3.26-51-710)
  38. Rule 26-51-711 - PROPERTY FACTOR - VALUATION OF PROPERTY (1.26-51-711 to 2.26-51-711)
  39. Rule 26-51-713 - PAYROLL FACTOR (1.26-51-713 to 3.26-51-713)
  40. Rule 26-51-715 - SALES FACTOR (1.26-51-715 to 4.26-51-715)
  41. Rule 26-51-717 - SALES FACTOR (1.26-51-717)
  42. Rule 26-51-718 - MODIFICATION OF APPORTIONMENT AND ALLOCATION (1.26-51-718(d) to 6.26-51-718(d))
  43. Rule 26-51-802 - PARTNERSHIP RETURNS, version 2 (1.26-51-802(b))
  44. Rule 26-51-804 - CORPORATION RETURNS (1.26-51-804(a) to 1.26-51-804(d))
  45. Rule 26-51-805 - CONSOLIDATED CORPORATE RETURNS (1.26-51-805 to 2.26-51-805(f))
  46. Rule 26-51-806 - FILING RETURNS, version 2 (1.26-51-806(a) to 2.26-51-806(b)(1))
  47. Rule 26-51-807 - FILING RETURNS, version 2 (1.26-51-807 to 2.26-51-807)
  48. Rule 26-51-912 - MINIMUM ESTIMATED TAX (1.26-51-912)
  49. Rule 26-51-913 - PAYMENT OF ESTIMATED TAX (1.26-51-913(b))
  50. Rule 26-51-1001 - WATER CONSERVATION INCENTIVES (1.26-51-1006 to 1.26-51-1011)
  51. Rule 26-51-1103 - DONATIONS AND SALES TO EDUCATIONAL INSTITUTIONS (1.26-51-1103)
  52. Rule 26-51-1213 - STEEL MILL TAX INCENTIVES (1.26-51-1213(a))
  53. Rule 26-51-1701 - LOW INCOME HOUSING (1.26-51-1701)

ARKANSAS CORPORATION INCOME TAX REGULATIONS

Pursuant to the authority vested in the Commissioner of Revenue and in compliance with Ark. Code Ann. § 26-18-301 and § 26-51-104, the Commissioner of Revenue of the Department of Finance and Administration, with the approval of the Governor, does hereby promulgate the following rules and regulations for the enforcement and administration of Ark. Code Ann. §2651-101 et seq.

EFFECTIVE DATE: These regulations shall be effective for tax years beginning on and after January 1, 1998. All currently existing Arkansas corporate income tax regulations (with the exception of 1996-3) are hereby specifically repealed as of the effective date of these regulations.

PURPOSE OF THE REGULATIONS: The following regulations are promulgated to implement and clarify the Arkansas Income Tax Act of 1929 (§ 26-51-101 et seq.), as amended. All persons affected by or relying upon these regulations are advised to read them in their entirety, as the meaning of the provisions of one regulation may depend upon the provisions contained in another regulation.

INTERPRETATION: In those instances where Arkansas has adopted a section of the Internal Revenue Code (IRC) as its own law, the regulations promulgated by the Treasury Department to aid in interpreting the IRC section should be used for guidance in applying Arkansas' law.

INDEX

INDIVIDUAL INCOME TAX REGULATIONS

REGULATION NUMBER

PAGE NUMBER

ACCOUNTING METHOD

Accounting Requirements

1. 26-51-401(a)

16

Accounting Requirements

2. 26-51-401(a)

17

Change in Accounting Methods

1. 26-51-401(b)

17

AIRLINES

Apportionment

4. 26-51-718(d)

69

AMORTIZATION

Intangibles

1. 26-51-428(c)

39

APPORTIONMENT

Airlines

4. 26-51-718 '

69

Apportionment and Allocation

Source of Law and Regulations

1. 26-51-701

42

Business vs. Nonbusiness Income

2. 26-51-701

42

Unitary Business Principle

3. 26-51-701

43

Allocation of Nonbusiness Income

1. 26-51-704

50

Authorized

1. 26-51-702

44

Determining Apportionment Factor

1. 26-51-709

50

Bus Lines or Motor Freight Lines

5. 26-51-718(d)

69

Construction Contractors

1. 26-51-718(d)

58

Nexus - - Generally

2. 26-51-702

44

Nature of Property Being Sold

3. 26-51-702

44

Solicitation of Orders

4. 26-51-702

44

Ancillary Activities

5. 26-51-702

45

DeMinimus Activities

6. 26-51-702

45

Independent Contractors

7. 26-51-702

45

Unprotected/Protected Activities

8. 26-51-702

46

Resident Individuals & Corps.

9. 26-51-702

49

Registration/Qualification

10. 26-51-702

49

Loss of Protection

11. 26-51-702

49

Partnership Income Allocated

1. 26-51-802(b)

71

Payroll Factor - - Generally

1. 26-51-713

54

Consistency

2. 26-51-713

55

Numerator

3. 26-51-713

55

Pipelines

6. 26-51-718(d)

69

Private Railcar Operators

2. 26-51-204

13

Property Factor

Includable Property

1. 26-51-710

51

Consistency

2. 26-51-710

52

Numerator

3. 26-51-710

52

Valuation - - Owned Property

1. 26-51-711

52

Valuation - - Rented Property

2. 26-51-711

53

Public Utilities

3. 26-51-204

14

Publishing

3. 26-51-718(d)

66

Railroads

1. 26-51-204

11

Sales Factor - - Generally

1. 26-51-715

56

Exceptions

2. 26-51-715

56

Consistency

3. 26-51-715

57

Numerator

4. 26-51-715

57

Nontangible Personal Property

1. 26-51-717

58

TV & Radio Broadcasting

2. 26-51-718(d)

62

BAD DEBTS

Generally

1. 26-51-425

35

Mortgaged or Pledged Property

2. 26-51-425

36

Bonds and Similar Obligations

3. 26-51-425

36

BANKRUPTCY

Dissolution and Receivership

1. 26-51-804(d)

72

BUS LINES

Apportionment

5. 26-51-718(d)

69

CHARTIBLE CONTRIBUTIONS

Generally

1. 26-51-419

32

Consolidated Filers

1. 26-51-805(f)

73

CONSOLIDATED CORPORATE RETURNS

Change of Ownership

1. 26-51-805(d) (1)

72

Allocation of Tax Credits

1. 26-51-805(e)

73

Eligible Members

1. 26-51-805(a) (1)

72

Filing Time and Place

2. 26-51-806(a)

82

Group Filing

1. 26-51-805

72

Net Operating Loss

2. 26-51-805(f)

73

Separate Computation of Income

1. 26-51-805(f)

73

Separate Computation of Income

2. 26-51-805(f)

76

CORPORATE LIQUIDATIONS

Treatment of Distributions

1. 26-51-413

30

Election of Subchapter S Status

2. 26-51-413

30

CORPORATE RETURNS

Bankruptcy

1. 26-51-804(d)

72

Federal Extensions

1. 26-51-807

83

Federal Extensions

2. 26-51-807

83

FEIN

1. 26-51-804(a)

71

Filing Time and Place

1. 26-51-806(a)

82

Federal Consolidated Group

2. 26-51-806(a)

82

Forms

1. 26-51-806(b) (1)

82

Substitute Forms

2. 26-51-806(b) (1)

83

CREDITS

Affordable Neighborhood Housing

1. 15-5-1301

03

Biotechnology

1. 2-8-101

01

Carryforward or Short Tax Year

2. 26-51-102(17) (B)

11

County or Regional Industrial

Development Corporation

1. 15-4-1224

01

Gain or Loss upon Sale of Stock

2. 15-4-1224

02

Enterprise Zone

1. 15-4-1704

02

Low Income Housing

1. 26-51-1701

88

Research & Development

1. 26-51-1103

88

Steel Mills

1. 26-51-1213(a)

88

Water Conservation Credits

1. 26-51-1006

85

Water Conservation Credits

1. 26-51-1007

86

Water Conservation Credits

1. 26-51-1008

86

Water Conservation Credits

1. 26-51-1010(c)

87

Water Conservation Credits

1. 26-51-1010(d)

87

Water Conservation Credits

1. 26-51-1011

87

Youth Apprenticeship

1. 26-51-509

41

DEBT FORGIVENESS

1. 26-51-404(b) (11)

24

DEDUCTIONS

Amortization of Intangibles

1. 26-51-428(c)

39

Bad Debts - - Generally

1. 26-51-425

35

Mortgaged or Pledged Property

2. 26-51-425

36

Bonds and Similar Obligations

3. 26-51-425

36

Reserve for Bad Debts

1. 26-51-426

37

Charitable Contributions

1. 26-51-419

32

Depreciation

1. 26-51-428(a)

38

Losses - - Generally

1. 26-51-424(a) (1)

34

Demolition of Buildings

2. 26-51-424(a) (1)

34

Obsolete Capital Assets

3. 26-51-424(a) (1)

34

Stock- - Value Shrinkage

4. 26-51-424(a) (1)

35

Farm Losses

5. 26-51-424(a) (1)

35

NOL Adjustments

1. 26-51-427

37

NOL Carryover - - Merger

1. 26-51-427(3) (C)

38

Sub Chapter M

1. 26-51-440

39

Taxes

1. 26-51-416

32

Travel and Entertainment

1. 26-51-423(b)

33

DEFERRED COMPENSATION PLANS

SIMPLE Retirement Plans

1. 26-51-414

31

DEFINITIONS

Association

1. 26-51-303

15

Cooperative Association

1. 26-51-303

15

Corporation

1. 26-51-102(5)

09

Foreign

1. 26-51-102(7)

09

Tax Exempt

1. 26-51-303

15

Dealer

1. 26-51-412(a)

27

Farm

10. 26-51-404(a) (1)

20

Fiduciary

1. 26-51-303

09

Partnership

2. 26-51-805(f)

15

Separate Return Limitation Year

2. 26-51-805(f)

76

Separate Return Year

1. 26-51-102(17) (A)

76

Tax Year

2. 26-51-102(17) (A)

09

Tax Year

1. 26-51-102(17) (B)

10

Tax Year - - Short Year

2. 26-51-102(17) (B)

11

Carryforward

1. 26-51-428(a)

11

DEPRECIATION

38

ESTIMATED TAX

Generally

1. 26-51-912

85

Payment Claimed

1. 26-51-913(b)

85

EXTENSIONS

Federal Extensions

2. 26-51-807

83

Consolidated Returns

2. 26-51-806(a)

82

State Extension - - First 90 days

1. 26-18-505(a) (3) (A)

07

State Extension - - Second 90 days

1. 26-18-505(a) (3) (B)

07

Federal Extensions

1. 26-51-807

83

FASITs

Definition

2. 26-51-440

39

Qualification Requirements

3. 26-51-440

39

Taxation of FASITs

4. 26-51-440

40

Taxation of Regular Interests

5. 26-51-440

41

Prohibited Transactions

6. 26-51-440

41

Transfers of Assets to FASITs

7. 26-51-440

41

GAIN OR LOSS

Bonds

Premiums or Discounts

9. 26-51-404(a) (1)

19

Sinking Funds

14. 26-51-404(a) (1)

20

Corporate Dissolutions

12. 26-51-404(a) (1)

20

Reorganizations

1. 26-51-412(c)

28

Exchanges of Property

2. 26-51-412(c)

29

Exchanges of Property

3. 26-51-412(c)

29

Securities Received

4. 26-51-412(c)

29

Securities Received

5. 26-51-412(c)

29

Property Exchange - - Like Kind

1. 26-51-412(a)

27

Property Exchange - - Not Like Kind

2. 26-51-412(a)

27

Payment of Dividends

3. 26-51-412(a)

27

Stock Received for Property

1. 26-51-412(b)

28

Involuntary Conversion

1. 26-51-404(b) (1)

23

Basis of Property So Acquired

4. 26-51-412(a)

27

Sale of Property - - Generally

1. 26-51-411

24

Shares of Stock

2. 26-51-411

25

Installment Sales

1. 26-51-411(e)

26

Loss Carryforwards

3. 26-51-411

26

Sale Proceeds as Income

11. 26-51-404(a) (1)

20

Installment Sales

Personal Property

2. 26-51-404(a) (2)

22

Real Estate

3. 26-51-404(a) (2)

22

Stock Dividends

19. 26-51-404(a) (1)

22

GROSS INCOME

Definitions

1. 26-51-404(a) (1)

18

Receipt

2. 26-51-404(a) (1)

18

Attributable to Tax Year

1. 26-51-404(a) (2)

22

Manufacturing, Merchandising

and Mining

3. 26-51-404(a) (1)

18

Contract with U. S. Government

4. 26-51-404(a) (1)

18

Payment in Forms Other than Cash

5. 26-51-404(a) (1)

19

Promissory Notes

6. 26-51-404(a) (1)

19

Leased Property

7. 26-51-404(a) (1)

19

Sale of Stock Shares

8. 26-51-404(a) (1)

19

Corporate Bonds

9. 26-51-404(a) (1)

19

Farming

10. 26-51-404(a) (1)

20

Sale of Property

11. 26-51-404(a) (1)

20

Corporate Dissolution

12. 26-51-404(a) (1)

20

Voluntary Shareholder Payments

13. 26-51-404(a) (1)

20

Trusts

14. 26-51-404(a) (1)

20

Annuities

15. 26-51-404(a) (1)

21

Real Estate

16. 26-51-404(a) (1)

21

Lease of Buildings

17. 26-51-404(a) (1)

21

Long-Term Contracts

18. 26-51-404(a) (1)

22

Stock Distributions

19. 26-51-404(a) (1)

22

Exempt Income

Involuntary Conversion

1. 26-51-404(b) (1)

23

Life Insurance Proceeds

1. 26-51-404(b) (3)

23

Interest on U.S. Obligations

1. 26-51-404(b) (6)

23

Interest on Ark. Obligations

2. 26-51-404(b) (6)

24

Forgiveness of Debt

1. 26-51-404(b) (11)

24

Installment Sales

Personal Property

2. 26-51-404(a) (2)

22

Installment Sales - - Real Estate

3. 26-51-404(a) (2)

22

INSTALLMENT SALES

Personal Property

2. 26-51-404(a) (2)

22

Real Estate

3. 26-51-404(a) (2)

22

INTEREST INCOME

U. S. Obligations

1. 26-51-404(b) (6)

23

Arkansas Obligations

2. 26-51-404(b) (6)

24

LIQUIDATIONS

Treatment of Distributions

1. 26-51-413

30

Election of Subchapter S

Corporation Status

2. 26-51-413

30

MOTOR FREIGHT LINES (TRUCKING COMPANIES)

Apportionment

5. 26-51-718(d)

69

NET OPERATING LOSS

Adjustments Beyond Statutory Limits

1. 26-51-427

37

Carryforward Due to Merger

1. 26-51-427(3) (C)

38

Carryforward of Short Tax Year

2. 26-51-102(17) (B)

11

Consolidated Returns

2. 26-51-805(f)

76

Steel Mills

1. 26-51-1213(a)

88

NEXUS

Ancillary Activities

5.26-51.702

45

De Minimis Activities

6. 26-51-702

45

Arkansas Corporations

9. 26-51-702

49

Generally

2. 26-51-702

44

Independent Contractors

7. 26-51-702

45

Nature of Property Being Sold

3. 26-51-702

44

Registration or Qualifications

10. 26-51-702

49

Solicitation of Orders

4. 26-51-702

44

Unprotected & Protected Activities

8. 26-51-702

46

Part Year

11. 26-51-702

49

NON-PROFIT ORGANIZATIONS

1. 26-51-303

15

PARTNERSHIP INCOME

1. 26-51-802(b)

71

PENALTIES

Estimated Tax

1. 26-18-208(6) (A)

03

Estimated Tax

1. 26-18-208(6) (B) (iii)

05

PIPELINES

Apportionment

6. 26-51-718(d)

69

PROTEST OF ASSESSMENT

Time Limitation to File

1. 26-18-404

05

Administrative & Judicial Review

1. 26-18-406

06

PROTEST OF DISALLOWED REFUND

Administrative & Judicial Review

1. 26-18-406

06

PUBLIC UTILITIES

Apportionment

3. 26-51-204

14

PUBLISHING

Apportionment

3. 26-51-718(d)

66

RAILROADS

Apportionment for Private Railcar

Operators (Other than Railroads)

2. 26-51-204

13

Apportionment for Railroads

1. 26-51-204

11

RECORD RETENTION

1. 26-51-401(a)

16

REFUNDS

1. 26-18-507(a)

08

SECTION 179 -- EXPENSING AND DEPRECIATION

1. 26-51-428(a)

38

STATUE OF LIMITATIONS

Assessments, Collections, Refunds And Prosecution

1. 26-18-306(i) (1)

05

TV & Radio Apportionment

2. 56-51-718(d)

62

TAX EXEMPT ORGANIZATIONS

1. 26-51-303

15

TAX RATES

Corporations

1. 26-51-205

14

TAXABLE YEAR

Basis for Determining Liability

1. 26-51-402(a)

17

Designation of Taxable Year

1. 26-51-102(17) (A)

09

52 or 53 Week Year

2. 26-51-102(17) (A)

10

Short Year

1. 26-51-102(17) (B)

11

NOL Carryforward and Credits

2. 26-51-102(17) (B)

11

TRUCKING COMPANIES

Apportionment

5. 26-51-718(d)

69

Notes

State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.

No prior version found.