Arkansas Code Title 26. Taxation § 26-26-1618. Settlement or compromise of liability

(1) There is controversy over the amount of tax due;

(2) The inability of the taxpayer to pay the tax results from the insolvency of the taxpayer; or

(3) The taxpayer provides proof of the filing of a bankruptcy or other liquidation, reorganization, or dissolution proceeding by the taxpayer or proof that the tax was discharged in a bankruptcy or other liquidation, reorganization, or dissolution proceeding.

(1) Upon receipt of a satisfactory explanation of the taxpayer's failure to pay the tax when it came due;

(2) Upon proof that the failure to pay the tax when it came due resulted from mistake by the taxpayer of either the law or the facts subjecting the taxpayer to the tax;

(3) Upon proof of insolvency of the taxpayer; or

(4) Upon proof of the filing of a bankruptcy or other liquidation, reorganization, or dissolution proceeding by the taxpayer or proof that the penalty was discharged in a bankruptcy or other liquidation, reorganization, or dissolution proceeding.