Arkansas businesses face several specific penalties for late sales tax filings and non-payments, including:

1. Late Filing Penalties: A percentage of the unpaid tax is assessed as a penalty for not filing the sales tax return by the due date. The exact percentage can vary based on how overdue the filing is.
2. Late Payment Penalties: Additional penalties may be imposed for not paying the owed sales tax by the deadline, typically calculated as a percentage of the unpaid amount.
3. Interest Charges: Interest accrues on both the unpaid tax and penalties, increasing the total amount owed over time.
4. Fines: Flat fees may be imposed depending on the severity and frequency of non-compliance.
5. Liens and Garnishments: The DFA can place liens on the business’s assets or garnish bank accounts to recover unpaid taxes.
6. Suspension of Sales Tax Permit: Persistent non-payment and late filings can result in the suspension or revocation of the business’s sales tax permit.
7. Legal Action: In severe cases, the DFA may pursue legal action against the business, leading to further financial and operational repercussions.
8. Increased Audits: Non-compliant businesses may be subject to more frequent and thorough audits, increasing the risk of uncovering additional compliance issues.

These penalties underscore the importance of timely sales tax filings and payments to maintain compliance and avoid significant financial and legal consequences.