Arkansas Appeals Commission Finds Taxpayer’s Supplemental Security Income Not Taxable

The Arkansas Tax Appeals Commission June 21 issued a decision partially in favor of a taxpayer who sought relief from a Proposed Tax Assessment by the Arkansas Department of Finance and Administration (ADFA). The Taxpayer, a resident of Arkansas in 2020, received two forms of income from supplemental security income (SSI) and nonemployee compensation for work performed outside of Arkansas. The ADFA received notice from the IRS of Taxpayer’s increased taxable income for 2020, resulting in the ADFA issuing a proposed tax assessment. The Taxpayer challenged the assessment claiming the SSI and nonemployee compensation were exempt. The Commission determined that ...