TAX DEBT RELIEF OPTIONS – ARKANSAS DEPARTMENT OF FINANCE & ADMINISTRATION

M&M Financial has been successfully resolving back tax liabilities for small businesses and individuals in Arkansas since 2009 and nationwide since 2005.  We deal with the IRS and State taxing authorities, so you do not have to!

If you or your business owes back-taxes to the state of Arkansas Department of Finance & Administration, you’ve come to the right place!

Below is some information that will help you start resolving your state tax liabilities.  If you have questions and would like to talk to a licensed Tax Resolution Specialist please do not hesitate to call us at 866-487-5624.

ARKANSAS PAYMENT PLANS TO RESOLVE BACK TAXES

The Arkansas Department of Finance and Administration (AR-DFA)  website states that all payment plan requests will be considered case by case with a review of the all facts surrounding the tax liability.

With that said, M&M has successfully negotiated payment plans of 5 years for clients to pay their state tax liabilities.

It is very likely they will require you to complete financial statement forms that show your income and expenses before approving your installment agreement request.  The AR-DFA may have you complete IRS Financial Statement Forms 433-A and 433-B when evaluating your ability to pay.  

Generally, Arkansas is more flexible when collecting individual tax liabilities than business tax liabilities.  

If you receive a notice from the AR-DFA stating that you owe back taxes it’s a good idea to contact the state right away.  There will be a phone number listed on your most recent notice or you could call AR-DFA directly at (501) 682-5000.

A proactive approach may save you a lot of future headaches, saving you from bank levies and wage garnishments.

Arkansas Department of Workforce Services

If your business owes Unemployment Tax and a tax lien has not been filed, you may be able to get 6 months to pay it back after paying 1/3 down payment.  The DWS will not allow a payment plan for Unemployment Tax after a tax lien has been filed.

REDUCE YOUR ARKANSAS TAX DEBT

Offer in Compromise

Arkansas Department of Finance and Administration does have an Offer in Compromise program available to settle a tax liability for a lesser amount.  If you don’t have equity in assets (like your home) and don’t have the ability to make monthly payments, you may qualify for the OIC.  

To be considered by the DFA for an Offer, you need to first become eligible and then qualify for the settlement.  Eligibility means gaining current tax compliance by filing all required tax returns and making current tax payments timely.

Each OIC received by the state is evaluated based on its own unique set of facts and circumstances.  Like the IRS, the OIC evaluation process is very thorough.

We typically do not recommend the Offer in Compromise for operating businesses. 

Penalty Relief

In certain cases the Arkansas Department of Finance and Administration will grant penalty relief.  To pursue penalty abatement with the AR-DFA, you will need to submit your request using Form 2000 – 4, Settlement or Compromise of Tax Liability Form.  

Penalty relief for business tax liabilities associated with Unemployment Tax, Withholding Tax or Sales & Use tax is typically not an option.

ARKANSAS TAX RESOLUTION CASE EXAMPLES

The Arkansas Department of Finance and Administration has some flexibility when it comes to back tax liabilities.  Each case varies based on factors such as your compliance history, type of tax owed and total amount past due.  Click below to see some case examples in your state negotiated by M&M.
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