Arkansas TAC Reverses Proposed Income Tax Assessment

The Arkansas Tax Appeals Commission (TAC) Feb. 7 issued a decision granting a petition by taxpayers and reversing a proposed tax assessment by the Arkansas Department of Finance and Administration (DFA) for tax years 2014 through 2018. The dispute centered on whether the taxpayers were domiciled in Arkansas or Florida during those years. After conducting a multi-factor analysis considering various ties to each state, such as addresses used, vehicle registrations, and locations of family members, the TAC determined that the taxpayers were domiciled in Florida and thus nonresidents of Arkansas. The TAC’s decision explains its legal analysis, including how it ...