The bill amends the Arkansas Income Tax Withholding Act of 1965 by introducing a new requirement for taxpayers subject to withholding. Specifically, it mandates that these taxpayers must electronically file Internal Revenue Service Form 1099 with the Secretary of the Department of Finance and Administration if they are the payer. The filing must occur on or before January 31 of the year following the issuance of the form, and electronic filing is required for those who issue at least 1,000 Form 1099s during their income year.

Additionally, the bill establishes an effective date for these changes, stating that the new requirements will apply to tax years beginning on or after January 1, 2026. This legislative update aims to streamline the filing process and enhance compliance with tax regulations in Arkansas.