TO AMEND THE ARKANSAS INCOME TAX WITHHOLDING ACT OF 1965; AND TO REQUIRE THE ELECTRONIC FILING OF A FORM 1099 IN CERTAIN CIRCUMSTANCES.

Senate Bill 502 amends the Arkansas Income Tax Withholding Act of 1965. This bill requires taxpayers subject to withholding requirements, who are also payers on an Internal Revenue Service Form 1099, to file these forms with the Arkansas Secretary of the Department of Finance and Administration. The forms must be submitted by January 31 following the income year they were issued. Furthermore, if a payer files 1,000 or more Form 1099s in an income year, they are required to file them electronically. This act would apply to tax years beginning on or after January 1, 2026.