Tax year — Basis for determining liability — Arkansas Code § 26-51-402

# (a)

Tax year — Calendar year versus fiscal year — Arkansas Code § 26-51-402(a).

# (b)

# (1)

Taxable income is computed on the basis of a period of time called a tax year.

# (2)

A tax year generally is the annual period on the basis of which the taxpayer regularly computes income in keeping its books and records.

# (3)

The annual period is usually a calendar year or a fiscal year.

# (4)

A calendar year is a period of twelve (12) months ending on December 31.

# (5)

A fiscal year is a period of twelve (12) months ending on the last day of any month other than December.

# (c)

A taxpayer must calculate income using the same tax year as that used on the federal income tax return.

# (d)

A change of the tax year must be approved by the Internal Revenue Service, and a copy of the approval letter must be attached to the Arkansas income tax return.