Information at source as to recipients of income — Arkansas Code § 26-51-811

(a) Recipients of income — Generally — Arkansas Code § 26-51-811(a).

(b) Every individual, fiduciary, and business entity of whatever type or nature (payor) located within Arkansas shall report to the Department of Finance and Administration, on Form 1099, all payments totaling two thousand five hundred dollars ($2,500) or more made to taxpayers (payees, such as individuals, fiduciaries, or business entities) during the tax year.

(c) Such payments shall include:

(1) Interest;

(2) Rent;

(3) Salaries;

(4) Wages;

(5) Premiums;

(6) Annuities;

(7) Compensation;

(8) Remuneration;

(9) Gains;

(10) Profits; and

(11) Other income.
(d)(1) When such payments are not properly reported to the department, the department can disallow the payments as deductions or credits in computing the payor's Arkansas income tax liability.

(2) Moreover, the department can require payors making payments as described above to withhold Arkansas income tax from such payments and remit the tax directly to the department.

(3) Arkansas Code § 26-51-812 and the Arkansas Income Tax Withholding Act of 1965, Arkansas Code § 26-51-901 et seq.