What is trailing nexus?

Most states make you keep filing for a while after you drop below their threshold. California runs through the next full calendar year. Texas uses a rolling twelve months. We track each state's rule so you cancel on the right date, not too early.

Will I get in trouble for canceling a permit?

Not if you do it in the right order. We file every outstanding and final return first, then guide the cancellation. The real risk is canceling early or skipping a final return, which is exactly what we prevent.

Which platforms do you support?

Amazon, Shopify and WooCommerce, with BigCommerce, Etsy, Walmart and eBay supported through manual entry. You can also enter your states by hand on any platform.

Do you file my returns?

Yes. During the wind-down we file the zero-dollar returns so nothing lapses, and once you're deregistered in a state there's nothing left to file.

How is this different from Avalara or TaxJar?

They help you register and file more. We help you deregister and file less. We only charge for the states you keep.

No. TrailingZero is software that flags deregistration opportunities and handles filings. For complex situations we tell you when to bring in your accountant.

Is TrailingZero live?

Yes. Free audits are live now — run yours in minutes. Connect a store read-only or enter your registered states by hand to see which you can cancel and what it saves.

Do I have to keep filing in Arkansas after I stop selling there?

Arkansas has little or no trailing-nexus window, so once your nexus ends and final returns are filed you can generally stop.

What's the economic nexus threshold in Arkansas?

Arkansas uses $100,000 in sales or 200 transactions (previous or current calendar year). Under it, with no physical presence, you generally don't have economic nexus.

No. This page is general education built from public sources and the rules change often. Confirm your specific situation with the state's tax authority or your accountant before you register or deregister.

Deregistration guide

Can I cancel my sales tax registration in Arkansas?

If you registered for a sales tax permit in Arkansas to be safe and most of your returns now read $0, you may be paying to file in a state you no longer owe. Here's when you can cancel in Arkansas — and how to do it without tripping a penalty.

By John DoeReviewed by Jane Doe, CPAUpdated June 2026How we verify

Confidence: moderate

Parts of this page (often the trailing-nexus timing) are still being verified, so our confidence here is moderate rather than high. Confirm anything you act on with Arkansas Department of Finance and Administration (DFA) — Revenue Division, Sales & Use Tax or a tax professional before you register or deregister.

Can you deregister below threshold?: Yes, after trailing nexus
Trailing-nexus window: Minimal / none
Final return required: Yes
How to cancel: the online portal or form AR20-40
Tax authority: Arkansas Department of Finance and Administration (DFA) — Revenue Division, Sales & Use Tax

Source: Arkansas Department of Finance and Administration (DFA) — Revenue Division, Sales & Use Tax

Short answer

Yes — once your nexus has genuinely ended. Canceling your Arkansas sales tax permit makes sense once you have permanently dropped below the $100,000 / 200-transaction economic nexus threshold and have no remaining physical presence in the state — doing so stops the zero-return filing obligation that applies even in months with no sales. The catch is that Arkansas requires you to file a final sales tax return before closure, and you must submit a separate closure request for each tax account type via ATAP or by submitting Form AR20-40; failing to do so properly can leave your account technically open and expose you to penalty assessments.

Nexus & savings calculator

Estimate whether you still have nexus in Arkansas — and what canceling could save.

State

Annual sales into Arkansas

Transactions (orders) per year

I have physical presence hereFBA/3PL inventory, an employee, or an office in Arkansas

Filing frequency

Cost per return

Physical presence
Sales over $100,000
Over 200 transactions

Still has nexus

You likely still have nexus in Arkansas because of more than 200 transactions — Arkansas still counts transactions. Keep filing here for now.

Trailing nexus: Arkansas has limited or no trailing-nexus window — you can generally deregister once your nexus has ended and final returns are filed.

Filing cost here today

$600/ yr

Read the Arkansas guide →

Estimate only — general education, not tax advice. Confirm with Arkansas's tax authority before you register or deregister.

Do you still have nexus in Arkansas?

You can only cancel once your obligation has ended. Two things create it: physical presence (inventory, an employee, an office) and economic nexus (crossing $100,000 in sales or 200 transactions).

For Amazon FBA and 3PL sellers the sneaky one is physical nexus: storing inventory in Arkansas creates it. Physical nexus in Arkansas arises from dollar one with any of the following: a store, office, warehouse, distribution center, or storage space (including Amazon FBA and 3PL inventory); employees, contractors, agents, or representatives (including temporary or gig workers) conducting sales, marketing, or support activities in-state; or any other business property maintained in Arkansas. If that inventory has since left the state, your physical nexus may have already ended even though the registration is still open.

Trailing nexus in Arkansas

Arkansas has not enacted an explicit trailing nexus statute or published formal guidance on post-threshold obligations for economic nexus. Multiple authoritative sources (Avalara, TaxCloud, NexusAccountant) confirm Arkansas does not have a defined trailing nexus rule. Obligations are generally understood to cease once a seller drops below the threshold and closes its permit.

No statutory trailing nexus period identified. However, sellers should file a final return and formally cancel their permit via ATAP or Form AR20-40. The DFA requires all businesses to file a final sales tax return when closing. Absence of a defined trailing nexus rule does not mean immediate zero liability — any unpaid tax for periods where nexus existed remains due.

How to cancel your Arkansas sales tax permit

Confirm both your physical and economic nexus in Arkansas have actually ended.
Work through Arkansas's trailing-nexus window and keep filing (even $0 returns) until it closes.
File any outstanding returns and the final return (AR20-40), marking it final.
Close the account via the online portal or form AR20-40.
Keep your records; states can review a closed account for several years.

Where TrailingZero fits

TrailingZero connects to your store read-only, maps where you actually have nexus state by state, and computes the exact date you can deregister in Arkansas after trailing nexus. During any wind-down it can file the zero-dollar returns so nothing lapses — and you only pay for the states you genuinely keep. Run a free audit anytime; this page is free education either way.

Arkansas Can I cancel FAQ

Can I get in trouble for canceling my Arkansas sales tax permit?: Not if you do it in the right order. The risk comes from canceling before Arkansas's trailing-nexus window ends or skipping a final return. No statutory trailing nexus period identified. However, sellers should file a final return and formally cancel their permit via ATAP or Form AR20-40. The DFA requires all businesses to file a final sales tax return when closing. Absence of a defined trailing nexus rule does not mean immediate zero liability — any unpaid tax for periods where nexus existed remains due.
Do I have to keep filing in Arkansas after I stop selling there?: Arkansas has little or no trailing-nexus window, so once your nexus ends and final returns are filed you can generally stop.
What's the economic nexus threshold in Arkansas?: Arkansas uses $100,000 in sales or 200 transactions (previous or current calendar year). Under it, with no physical presence, you generally don't have economic nexus.
Is this tax advice?: No. This page is general education built from public sources and the rules change often. Confirm your specific situation with the state's tax authority or your accountant before you register or deregister.

See what you can stop paying in Arkansas

Run a free audit and see which registrations you can drop — in minutes, no card required.

Start free →Free audit · no card required.

Other states

See all states →

Sources

Primary sources reviewed for this page. Data current as of June 2026.

TrailingZerois software, not a CPA or law firm, and this page is general education — not tax or legal advice. State rules and thresholds change frequently; confirm your situation with the state's tax authority or your accountant before you register or deregister. See how we research and review this data in our editorial & accuracy policy.