SB502
To Amend The Arkansas Income Tax Withholding Act Of 1965; And To Require The Electronic Filing Of A Form 1099 In Certain Circumstances.
Last Action (May 5, 2025): Died in Senate Committee at Sine Die adjournment.
Sponsors
AI-Generated Summary
Senate Bill 502 amends the Arkansas Income Tax Withholding Act of 1965 to establish new filing requirements for IRS Form 1099. The bill mandates that taxpayers subject to state withholding requirements must file Form 1099s with the Arkansas Secretary of the Department of Finance and Administration. Filings must be submitted by January 31 following the close of the relevant income year. Furthermore, the bill introduces a mandatory electronic filing requirement for any taxpayer who issues at least 1,000 Form 1099s during an income year. These provisions apply to tax years beginning on or after January 1, 2026.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiary is the Arkansas Department of Finance and Administration, which will gain improved access to financial reporting data, potentially enhancing tax compliance monitoring, data processing efficiency, and the identification of potential tax discrepancies through electronic filing.
Who Might Suffer?
The primary groups negatively impacted are large taxpayers or businesses that issue 1,000 or more Form 1099s annually. These entities will face increased compliance burdens, as they must adjust their internal accounting and tax reporting workflows to accommodate mandatory electronic submission of these forms to the state by the specified January 31 deadline.
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