AR HB1908

Amended returns or verified claims for refunds must be filed within three (3) years from the original return filing date or two (2) years from tax payment, whichever expires later.

Limitation periods apply regardless of whether the amended return reduces tax liability, requests a refund, changes filing status, or amends the return for any other purpose.

Statute of limitations does not apply to taxes paid as a result of an audit or proposed assessment, or when federal taxable income or estate amounts are changed and corrected by the Internal Revenue Commissioner.

Taxpayers subject to audit may file amended returns for overpayments that occurred during the audit period, but total refunds for the extended audit period cannot exceed the total amount assessed during that period.

Effective for tax years beginning on or after January 1, 2019.