Supreme Court of Arkansas March 6, 1995, 94-684 (Hercules Inc. v. Pledger)

Tom Glaze, Justice.

Appellant Hercules Inc. is a Delaware corporation doing business in Arkansas, and reports its business income which is subject to the Arkansas Uniform Distribution of Income for Tax Purposes Act (UDITPA) on a calendar year basis. In 1988, appellee Department of Finance & Administration (DF&A) notified Hercules that its 1987 state income tax return was subject to a “desk audit.