Letters & Notices

Letters & Notices

Welcome Letter –The Arkansas Department of Finance and Administration will mail a welcome letter to every organization that has current franchise tax activity with the Secretary of State. Depending on your registration status with DFA, you may receive a letter that includes the specific Franchise Tax Account ID assigned to the business, as well as instructions on creating an online account to submit returns and payments. If we are missing key information required for registration, your welcome letter may contain instructions to go to atap.arkansas.gov to complete your registration.

Filing Reminder–Notices are sent to companies with franchise tax accounts as a reminder of the upcoming report due date. The notice includes information about filing and paying the annual return.

Notice of Non-Filed Franchise Tax – When the expected annual franchise tax return is not received by the Department of Finance and Administration, a notice is sent to the business at the address on file for the account. The notice informs the corporation of what needs to be done to submit the return, options for contacting the Franchise Tax Section, and what will happen if nothing is done.

Franchise Tax Clearance – Upon request, the Franchise Tax Section of the Department of Finance and Administration can provide a letter of Franchise Tax Clearance for the business. The letter may include clearance for general filing, reinstatement, and/or dissolution. It may also be used to verify no clearance for the business.

Estimated Assessment – If no action is taken after the Non-Filed Franchise Tax notice is sent, an Estimated Assessment is then mailed to the address on file for the account. This notice informs the company of the estimated balance due to the State of Arkansas if a return is failed to be submitted by the company.

Notice of Proposed Assessment –A Notice of Proposed Assessment is mailed to the address on file for the account if a corporation has an outstanding balance due the DFA. There will be a voucher attached to the bottom to submit payment of any outstanding balance due.

Final Assessment – After the Proposed Assessment is sent and the balance on the account remains, a third and final notice is sent to the company regarding the amount due.

Notice of Subject to Forfeiture – When a corporation is delinquent in the payment of the annual franchise tax for a prior year and payment arrangements have not been made, a Notice of Subject to Forfeiture is sent to the corporation to notify them of the pending action. If a corporation has not filed and paid, the Secretary of State may revoke the charter accordingly.