Arkansas Code § 26-18-506 - Preservation of Records by Taxpayers

(a) It is the duty of every taxpayer required to make a return of any tax due under any state tax law to keep and preserve suitable records as are necessary to determine the amount of tax due or to prove the accuracy of any return.

(b) Unless otherwise provided by law, the taxpayer is required to keep and maintain all records within the State of Arkansas and for at least six (6) years after a return was filed. These records are subject to examination by the director at any reasonable time.

(c) When the records required by this section are kept outside the State of Arkansas in the usual course of business, they shall be produced within the state within fifteen (15) days after receipt of demand by the director. If the taxpayer determines it is impractical, then the taxpayer may request, and the director may grant, permission to have the records audited wherever they may be.

(d) When a taxpayer fails to preserve and maintain the records required by any state tax law, the director may, in his or her discretion, make an estimated assessment based upon information available to him or her as to the amount of tax due by the taxpayer. The burden of proof of refuting this estimated assessment is upon the taxpayer.

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Last modified: November 15, 2016