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 file Internal Revenue Service Form 1099 with the Secretary of the Department of Finance and Administration. The filing must occur on or before January 31 of the year following the issuance of the form. Additionally, if a taxpayer issues at least 1,000 Form 1099s during the income year, they are required to file electronically.

The new section added to the law, designated as 26-51-921, outlines these filing requirements and specifies that the changes will take effect for tax years beginning on or after January 1, 2026. This amendment aims to streamline the filing process and enhance compliance among taxpayers who issue a significant number of Form 1099s.