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Arkansas Tax Exemption For Nonprofit Corporations

 

Steps To Applying For Tax Exemption In Arkansas

What kind of tax exemptions can a nonprofit corporation take advantage of in Arkansas?

If a nonprofit corporation in Arkansas has been granted income tax exempt status (typically 501c3 status) from the IRS, the AR nonprofit will also be able to avoid the Arkansas corporate income tax. In general, Arkansas nonprofit corporations are not exempt from sales taxes in the state; however, there are a few exceptions for certain charities, churches, and food distribution agencies.

Do I need to send anything to the state of Arkansas to be exempt from the state corporate income tax if I’ve already been granted 501c3 status?

Yes. Send the following to the Arkansas Department of Finance and Administration:

  • A copy of the IRS Determination Letter (proof of 501c3 status)
  • Copies of the first and second pages of the IRS Form 1023 (or 1024)
  • A statement declaring Arkansas tax exemption.

Can I still apply for tax exemption from the state of Arkansas if I haven’t applied for the federal exemption?

Yes. Arkansas nonprofit corporations in Arkansas can apply for state corporate tax exemption by sending your articles of incorporation, bylaws, and a completed version of Form AR1023CT to the Corporation Income Tax Section of the Arkansas Department of Finance and Administration (see the address and link below).

Are there any other tax exemptions my nonprofit corporation can apply for in Arkansas?

Yes. However, most nonprofits are not exempt from Arkansas’ sales tax. But like any rule, there are a few slim exceptions. If your AR nonprofit corporation is strictly a charity, church, or food distribution agency, you can apply for sales tax exemption by completing Streamlined Sales and Use Tax Agreement on the Arkansas Department of Finance and Administration’s website.

If I want to apply for tax exemptions in Arkansas, where do I send my forms when I complete them?

Arkansas Dept. of Finance & Admin.
Corporation Income Tax Section
PO Box 919
Little Rock, AR 72203-0919
Information: (501) 682-4775
Fax: (501) 682-7114
Arkansas DFA Website

More Arkansas Tax Info

This comprehensive guide to obtaining and maintaining 501c3 status from the IRS includes information on how to prepare your nonprofit to apply for 501c3 status, as well as information about the forms and fees required by the IRS.

This guide overviews and includes the special tax-exempt language a 501c3 nonprofit organization must include as part of its articles of incorporation. 

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