(a) Taxpayer required to file return or amended return — Arkansas Code § 26-51-808(a) and (b).

1. (1) The Department of Finance and Administration shall have the authority to require a taxpayer to file an Arkansas income tax return or an amended Arkansas income tax return under the following circumstances:

   1. (A) The taxpayer has failed to file a return;
   2. (B) The taxpayer has failed, through error, to include items of taxable income in the taxpayer's return; or
   3. (C) The taxpayer has intentionally failed to include items of taxable income in the taxpayer's return.
2. (2) A return or amended return filed under such circumstances must include all items of income received by the taxpayer during the tax year, whether or not such income is subject to Arkansas individual income tax.

(b) Penalties, prosecution, and jeopardy assessments — Arkansas Code § 26-51-808(c).

1. (1)

   1. (A) Even though a taxpayer fully complies with a request by the department to file a return or amended return, any penalties justifiable under Arkansas Code § 26-18-208 may be assessed against the taxpayer.
   2. (B) Moreover, in the case of intentional failure to disclose taxable income (i.e., fraud), a referral to the appropriate prosecuting attorney for criminal prosecution may be appropriate.
   3. (C) Arkansas Code § 26-18-201 et seq.
2. (2) Where a taxpayer refuses to promptly comply with a request by the department to properly prepare and file a return or amended return, the department may make a jeopardy assessment against the taxpayer as set forth in Arkansas Code § 26-18-402.