Manage your Arkansas year-end information return filing with built-in compliance checks, bulk upload, recipient copy distribution, and secure electronic filing.
Arkansas is a static/selective IRS conformity state, which means federal tax changes do not automatically flow into state tax rules. The Arkansas Department of Finance and Administration (DFA) continues to be the authoritative source for state filing instructions.
The One Big Beautiful Bill Act (OBBBA) amended several IRC provisions affecting individual income, deductions, and information reporting at the federal level. However, based on currently published DFA guidance, Arkansas's 1099 withholding thresholds, filing methods, and Form AR3MAR and AR3PAR reconciliation requirements remain unchanged for tax year 2026.
The Arkansas Department of Finance and Administration (DFA) requires businesses and payers to file federally reportable 1099 returns when Arkansas withholding or DFA filing thresholds are met.
When Arkansas tax is withheld, 1099 filing with the state is required regardless of payment amount or current residence. When no Arkansas tax is withheld, the DFA applies thresholds of $2,500 or more.
The common forms include:
Nonemployee Compensation
Miscellaneous Information
Government Income Payments
Card Network Transactions
Taxable Interest Income
Dividends and Distributions
Broker and Barter Proceeds
Retirement Distributions
Original Issue Discount
Gambling Winnings
Employers Annual Reconciliation of Income Tax Withheld
Pension and Annuity Reconciliation of Income Tax Withheld
Arkansas participates in the IRS CF/SF program. Information from federal returns is passed down to the state automatically. Direct filing is also supported through DFA-approved methods. . For paper filing, forms have to be accompanied by a photocopy of the federal Form 1096 transmittal.
| Form | CF/SF Participation | Direct State Filing Required? |
|---|---|---|
| 1099-NEC, MISC, INT, DIV, B, G, K, R | Yes, if filed through the 1099 CF/SF program | If Arkansas state tax is withheld, filing may be through CF/SF or direct DFA filing |
| W-2G | Not handled via CF/SF workflow | Yes, when Arkansas gaming withholding is reported |
Arkansas lists January 31 as the due date for 1099 reporting. Forms AR3MAR and AR3PAR are generally due by February 28, following the close of the tax year. For tax year 2026, the due date for filing the Arkansas 1099 with the DFA is February 1, 2027, and the last date to file the AR3PAR is March 1, 2027, since January 31 and February 28 fall on weekends.
| Form type | Filing Condition | State Income Threshold | Filing Deadline (2026 TY) |
|---|---|---|---|
| 1099-NEC, MISC, B, G, K, R, OID | AR tax withheld | All amounts | February 1, 2027 |
| 1099-INT, 1099-DIV | AR tax withheld | All amounts | February 1, 2027 |
| 1099-NEC, MISC, B, G, K, R, OID | No AR tax withheld | $2,500 or more | February 1, 2027 |
| W-2G | AR gaming withholding | All amounts | March 1, 2027 |
| AR3MAR | AR tax withheld | All amounts | March 1, 2027 |
Note: If January 31 or February 28 following the close of the tax year is a weekend or a federal holiday, the deadline will fall on the next working day.
Arkansas employers use Form AR3MAR, the Employers Annual Reconciliation of Income Tax Withheld, to reconcile state income tax withheld during the tax year with the withholding payments already reported and paid to the DFA. Payers that withhold Arkansas income tax from pensions and annuities, they need to use Form AR3PAR instead of AR3MAR.
AR3MAR reconciles the Arkansas income tax withheld by an employer during the tax year against monthly withholding deposits made to the DFA.
Every Arkansas employer with withholding obligations must file AR3MAR by February 28. Payers that withhold state tax from pensions and annuities need to submit AR3PAR to the DFA.
State copies of Forms 1099 must have a photocopy of federal Form 1096, (Annual Summary and Transmittal of US Information Returns) to the Withholding Section of the DFA.
Any payer that has withheld Arkansas income tax on a reportable 1099 payment can file those statements with the DFA, regardless of the number of recipients or the size of the business. Arkansas participates in the IRS CF/SF program, so filing can be done through CF/SF where applicable. When no Arkansas income tax is withheld, Arkansas requires 1099 filing when the DFA’s $2,500 filing threshold is met.
This includes payers such as:
Here are the details needed to accurately file 1099 forms with Arkansas:
The DFA assigns an eleven-digit Arkansas state ID for wage withholding and pension accounts. Do not substitute the federal EIN as the state identifier.
Paper filing requires a photocopy of the federal Form 1096 to accompany 1099 submissions filed with the DFA.
Legal business name, mailing address, and federal employer identification number (EIN).
Recipient name, address, taxpayer identification number (TIN), and the income amounts and withholding reported on the applicable Form 1099.
Total income amounts reportable to Arkansas for state withholding.
Total Arkansas income tax withheld from all reportable payments during the tax year.
Include the appropriate CF/FS code in the required state field of the Payee B record when applicable.
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its specific 1099 filing requirements, deadlines, and forms.
Yes, Arkansas requires 1099 state filing even if no state tax was withheld, as long as Arkansas thresholds are met. The current DFA state threshold is $2,500 when no Arkansas income tax is withheld. Some qualifying forms are forwarded to the DFA through the IRS CF/SF program.
Yes. If Arkansas income tax was withheld on any 1099 payment, filing is required regardless of the payment amount, the number of recipients, or the recipient's current state of residence. Filing can be done through the IRS CF/SF program, when applicable, or through the direct filing method.
Form AR3MAR is Arkansas's Employers Annual Reconciliation of Income Tax Withheld. It reconciles the state tax withheld in the tax year with the amounts filed and paid to the DFA through the year. All payers with withholding obligations are required to file AR3MAR by February 28.
Arkansas may assess a failure-to-pay penalty of 5% per month or part of a month on the unpaid withholding tax, up to 35% of the total tax due, plus interest on any unpaid balance. Federal and Arkansas penalties may be applied separately and are cumulative.
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