(a) Type of records and time period — Arkansas Code § 26-18-506(b).

1. (1) The taxpayer is required to keep and maintain all records that are necessary to:

   1. (A) Reconcile the amount of tax due; or
   2. (B) Prove the accuracy of any return.

2. (2) These records:

   1. (A) Must be preserved for six (6) years after a return is filed; and
   2. (B) Are subject to examination by the Secretary of the Department of Finance and Administration at any reasonable time.

(b) Insufficient records and estimated assessment — Arkansas Code § 26-18-506(d).

1. (1) If the taxpayer cannot produce sufficient records to reconcile the amount of tax due or to prove the accuracy of any return, the secretary may make an estimated assessment based upon information available to him or her.
2. (2) The burden of proof of refuting this assessment is upon the taxpayer.