The bill amends Arkansas law regarding corporate income tax returns by mandating the electronic filing of certain returns. Specifically, it introduces new requirements for taxpayers who are obligated to file electronically with the Internal Revenue Service (IRS) under federal regulations as of February 23, 2023. Taxpayers filing under Arkansas Code 26-51-804 and 26-51-805 must file their state returns electronically if they meet these federal criteria. Additionally, the Secretary of the Department of Finance and Administration is granted the authority to waive the electronic filing requirement if it is determined that such filing would impose an undue hardship on the taxpayer.

The bill also clarifies that members of an affiliated group filing a consolidated return must comply with the electronic filing requirement, regardless of whether the federal parent corporation is an eligible member of the group. The effective date for these provisions is set for tax years beginning on or after January 1, 2025.

Statutes affected:
SB 558: 26-51-804, 26-51-805