1.26 Ark. Code R. 51-811(a)
Every individual, fiduciary and business entity of whatever type or nature (payor) located within Arkansas shall report to the Department, on Form 1099, all payments totaling $2,500.00 or more made to taxpayers (payees, such as individuals, fiduciaries or business entities) during the tax year. Such payments shall include: interest; rent; salaries; wages; premiums; annuities; compensation; remuneration; gains; profits and other income. When such payments are not properly reported to the Department, the Department can disallow the payments as deductions or credits in computing the payor's Arkansas income tax liability. Moreover, the Department can require payors making payments as described above to withhold Arkansas income tax from such payments and remit the tax directly to the Department. ACA 26-51-812; ACA 26-51-901 et seq.
1.26 Ark. Code R. 51-811(a)