AR HB1722

A taxpayer's bankruptcy filing tolls (pauses) the 10-year tax collection period under Arkansas Code § 26-18-306(h) until 180 days after the bankruptcy case terminates.

Bankruptcy filing also tolls the 10-year period for certificates of indebtedness filed by the tax director under Arkansas Code § 26-18-701(a)(3)(C) until 180 days after the bankruptcy case ends.

Tax liens authorized by the director arise at the time of tax assessment and continue until the taxpayer satisfies the assessment or the lien becomes unenforceable by law.

The tax director may file another lien to secure a tax delinquency if an inadvertently filed lien must be released due to a bankruptcy stay and the tax delinquency is not subsequently discharged.

All provisions are effective for tax years beginning on or after January 1, 2020.