Rule 006.05.06-005-gr-86 - Bad Checks and Acceptance of Personal Checks
A. If any person makes payment to the Department by means of a check, draft, money order, or electronic funds transfer drawn on any bank, person, firm or corporation, and the check, draft, money order, or electronic funds transfer is later returned without the amount due having been paid in full, the Director is authorized and empowered to impose a penalty of ten percent (10%) of the face amount of such check, draft, money order, or electronic funds transfer or $20.00, whichever is greater, against the maker or drawer of such check, draft, money order, or electronic funds transfer. This section shall not apply if the person establishes to the satisfaction of the Director that he tendered such check, draft, money order, or electronic funds transfer in good faith and with reasonable cause to believe it would be duly paid.
B. The Director will refuse to accept personal checks in the following instances:
When a second personal check is tendered in payment of an invalid check previously tendered;
When the Director has received from a particular individual one or more personal checks within a twelve (12) month period that have been returned due to insufficient funds or other reason;
When an individual is attempting to secure an immediate release of a tax lien;
When tax payments are required to be made by electronic funds transfer as required by Arkansas law;
When a corporation or fiduciary is attempting to file a final tax return prior to disposing of assets;
When an individual attempts to obtain a clearance letter from the Revenue Division in order to renew an Alcoholic Beverage Control permit or a Tobacco Control Board permit;
When transient vendors sell at fairs and special events; and
When a taxpayer pays the tax liability following service of a business closure order.