Arkansas Appeals Office Finds Taxpayers Didn’t Abandon Domicile, Affirms Individual Income Tax Assessment

The Arkansas Office of Hearings and Appeals (OHA) June 21 found that Taxpayers didn’t abandon their Arkansas domicile. Taxpayer-husband moved from Arkansas and Taxpayer-wife remained. Taxpayers filed non-resident individual income tax returns in Arkansas as married filing separately. Upon audit, the Department of Finance and Administration (DFA) found that Taxpayers were Arkansas residents, adjusted their return to reflect full-year state residency, gave them credit for income taxes paid to another state, and assessed tax and interest. Taxpayers protested. Upon review, the OHA noted that Taxpayers: 1) claimed a homestead tax credit on their Arkansas home; 2) Taxpayer-husband was registered to ...