What Are the Arkansas 1099 Filing Requirements?
Navigating Arkansas's 1099 reporting rules requires understanding how they connect to federal obligations and state-specific compliance procedures.
Form 1099 is an information return used by businesses to report various types of payments made to individuals who are not employees and to other businesses. The Internal Revenue Service (IRS) requires these forms to track non-employee compensation, rent, dividends, and other income. Beyond federal obligations, many states have their own distinct filing requirements that businesses must navigate.
For businesses making payments connected to Arkansas, understanding the state-specific rules is part of annual tax compliance. The Arkansas Department of Finance and Administration has established its own procedures for receiving and processing 1099 data. This guide provides an overview of these requirements, detailing who needs to file, what forms are necessary, and the methods for submission.
Determining Your Arkansas Filing Obligation
A business must file a 1099 with the State of Arkansas if it issues a federally required 1099 for payments made to an Arkansas resident or for services performed within Arkansas.
The state has its own specific filing threshold. A business is required to file a copy of the federal Form 1099 with Arkansas if the total payments to a recipient are $2,500 or more in a calendar year, provided no Arkansas income tax was withheld.
If any amount of Arkansas income tax was withheld from the payments, a 1099 must be filed with the state regardless of the total payment amount. In this case, even payments under $2,500 must be reported.
Information and Forms Needed for Filing
Before any forms can be submitted, a business must collect specific information for each payment recipient. This includes the payee’s full legal name, their complete mailing address, and their Taxpayer Identification Number (TIN). A TIN can be a Social Security Number (SSN) for an individual or an Employer Identification Number (EIN) for a business entity.
The primary tool for gathering this data is IRS Form W-9, Request for Taxpayer Identification Number and Certification. It is a best practice to have every contractor or other payee complete and sign a Form W-9 before any payments are issued. This step helps ensure that all necessary information is on hand before the filing deadlines.
When submitting 1099s to Arkansas, a transmittal form is required to summarize the documents. The correct form to use depends on whether state tax was withheld.
If Arkansas income tax was withheld, you must file Form AR3MAR, Annual Reconciliation of Income Tax Withheld, to report and reconcile the amount of tax withheld during the year.
If no Arkansas income tax was withheld and you are filing by mail, you must include a copy of the federal Form 1096, Annual Summary and Transmittal of U.S. Information Returns, as your transmittal document.
Arkansas Filing Deadlines
For payments made during the 2024 tax year, businesses must furnish a copy of the Form 1099 to the recipient by January 31, 2025. This ensures that payees have the necessary information to prepare their own income tax returns.
The deadline for filing state copies of Forms 1099 with the Arkansas Department of Finance and Administration is also January 31, 2025. If state tax was withheld, the required transmittal form, Form AR3MAR, Annual Reconciliation of Income Tax Withheld, is due by February 28, 2025.
How to File with the State of Arkansas
Businesses can submit their filings to the Arkansas Department of Finance and Administration using several methods.
A convenient option for many businesses is the Combined Federal/State Filing (CF/SF) program. When filing 1099s electronically with the IRS, a business can opt into this program. The IRS will then forward the 1099 information directly to the Arkansas Department of Finance and Administration on the business’s behalf, eliminating the need for a separate filing with the state.
Alternatively, businesses can file directly with the state. The designated portal for direct electronic submission is the Arkansas Taxpayer Access Point (ATAP). To use this system, a business may need to create an account. Once logged in, users can upload W-2 and 1099 data.
For businesses that file on paper, submission by mail is available. The required transmittal form should be placed on top of the corresponding state copies of the Forms 1099. This entire package must be mailed to the Arkansas Department of Finance and Administration at the following address: Withholding Tax Section, P.O. Box 8055, Little Rock, AR 72203-8055.