Arkansas Franchise Tax Reporting Moves to DFA

January 22, 2021

By Isabel Glenn

In a move to consolidate all of the taxing services for the State of Arkansas to the Department of Finance and Administration (DFA), effective as of January 1, 2021, all Arkansas entities required to pay annual Franchise Taxes will no longer file with the Secretary of State and will now file with the DFA. 

Filing Franchise Tax Reports through the DFA will require all entities, or their representative, to create an account with the Arkansas Taxpayer Access Point (ATAP). ATAP is a web-based service that provides taxpayers with access to their tax accounts and provides free online filing and payment options. The Franchise Tax Report deadline is May 1, 2021 and ATAP is currently live and accepting tax reports for 2021. 

Entities that have existing accounts with the Secretary of State will be notified of the transfer to the DFA via letter. The DFA’s letter does not require immediate action and any request for additional or missing information may be supplied on the 2021 Franchise Tax Report. Newly formed entities are not required to file a Franchise Tax Report with the DFA until the calendar year following their year of incorporation. 

The Secretary of State will continue to be the primary contact for forming and managing Arkansas business entities.

Isabel Glenn joins the firm’s Rogers office where she will practice in the Mergers & Acquisitions Practice Group. Her practice includes all aspects of business mergers and acquisitions, including structuring, due diligence, negotiation and documentation. In addition, Isabel handles commercial litigation matters, from pre-litigation evaluation to drafting pleadings, engaging in targeted discovery and motion practice to trial and appeal.

Disclaimer: The information included here is provided for general informational purposes only and should not be a substitute for legal advice nor is it intended to be a substitute for legal counsel. For more information or if you have further questions, please contact one of our Attorneys.