The Corporation Income Tax Section provides technical assistance to corporate customers, CPAs and other tax preparers; processes, examines, and audits Partnership, Limited Liability Company, C-corporation, and Sub-S income tax returns and refund claims while ensuring compliance with Arkansas’ income tax code, regulations, and policy statements; monitors and revises the computerized processing system to ensure compliance with current legislative and administrative requirements. The office is comprised of the audit, examination, accounts receivable, and data entry areas.
On April 16, 2025, Arkansas Gov. Sarah Huckabee Sanders signed Senate Bill 567 into law as Act 719 of 2025, modernizing the state’s corporate income tax. This Corporation Income Tax reform legislation amends Arkansas’ adoption of the Multistate Compact and Uniform Division of Income for Tax Purposes Act for the apportionment of income derived from multistate operations. The Act aligns Arkansas with other states by adopting Market-Based Sourcing for Sales of Services and Intangibles, which is based on the location where they are delivered to the customer, establishes an economic nexus filing threshold for non-resident corporations or partnerships, and amends the provisions related to business income.