Late fees and interest charges on businesses’ annual franchise taxes will be waived until July 15, Arkansas Secretary of State John Thurston announced. The filing deadline for annual franchise taxes is May 1.
Typically, companies filing after the deadline are charged a $25 late fee plus 0.000274% interest per day the payment is delinquent. These penalties will be waived for those who file between May 2 and July 15. This only applies to the 2020 franchise tax reporting year, according to the news release.
“The May 1st deadline is set by state law, however, we thought this would be one way to help companies who may need a little extra time to get their tax payments in order,” Thurston said. “The ongoing COVID-19 pandemic is having a serious impact on our business community and we want to help them in any way that we can.”
“The Secretary continues to work closely with all stakeholders and coordinated these efforts with those of the Governor’s Office and the Department of Finance and Administration,” according to the release.
To file Arkansas franchise taxes online, visit https://www.ark.org/sos/franchise/index.php.