§ 26-51-2305 - Withholding return, reporting, and payment -- Lottery. - Arkansas Statutes

26-51-2305. Withholding return, reporting, and payment -- Lottery.

(a) A claim center shall register to withhold income tax under 26-51-2304 from lottery winnings in the manner prescribed by the Director of the Department of Finance and Administration.

(b) The withholding account used to report and remit the withholding on wages shall not be used to report withholding on lottery winnings.

(c) A separate account for withholding on lottery winnings shall be obtained from the Revenue Division of the Department of Finance and Administration.

(d) Each claim center shall file a monthly return and remit the income tax withheld from lottery winnings on or before the fifteenth day of the month following the month in which the income tax was withheld.

(e) A claim center shall keep the following records and information for six (6) years after the date the income tax becomes due or is paid, whichever is later:

(1) The total lottery winnings paid;

(2) The amount of lottery winnings income tax withheld and remitted;

(3) The name, address, social security number or taxpayer identification number, and amount of lottery winnings of each person in receipt of lottery winnings; and

(4) The name, address, and taxpayer identification number of the claim center.

(f) (1) A claim center shall provide two (2) copies of a statement to each person who received lottery winnings and had an amount withheld under 26-51-2304 during the income year before January 31 following the close of the income year.

(2) Each statement shall contain the following:

(A) The name, address, and social security number or taxpayer identification number of the person in receipt of lottery winnings;

(B) The total amount of the lottery winnings subject to withholding that was paid by the claim center to the recipient of the lottery winnings for the income tax year;

(C) The total amount withheld from the recipient's lottery winnings by the claim center under this subchapter for the income year;

(D) The name, address, and Arkansas identification number of the claim center; and

(E) Such other information as the director shall require by rule.