Arkansas Appeals Commission Finds Taxpayer Not Liable for Proposed Tax Assessment

The Arkansas Tax Appeals Commission March 25 ruled in favor of an individual income taxpayer seeking relief from a Proposed Tax Assessment issued by the Department of Finance and Administration (DFA). The taxpayer did not file an Arkansas individual income for 2021, and the DFA issued a notice of non-filed return. After the taxpayer failed to respond to the notice, the DFA issued the Proposed Tax Assessment. The taxpayer’s income only comprised of social security benefits and military retirement pay, which the taxpayer argued was exempt from tax. Based on the evidence provided, the commission agreed with the taxpayer that ...