For your assignment, you should submit a letter to the client in response to the clients question and a tax research memo for your files to support your conclusion. For this assignment, focus on Arkansas tax issues.

David Edwards is the Executive Director of the OBryan Center, a local nonprofit. The OBryan Center is a tax-exempt organization for federal income tax purposes [501(c)(3) public charity]. The OBryan Center works with at risk youth to encourage and facilitate the learning of trade skills. Given the impact of COVID-19 on the local economy, contributions to the OBryan Center have dropped substantially. Furthermore, one of the organizations annual fundraisers was recently canceled given concern for large gatherings and the difficulty in maintaining a safe social distance. In order to supplement the organizations fundraising, the organization has decided to sell t-shirts to raise funds. The shirts will be sold to the general public for a two week period. The shirts cost $8 each and will be sold for $20 each. The organization anticipates selling approximately 200 shirts in Conway. David comes to you to inquire whether the organization must collect and remit any state tax on the sale of the shirts. The organization does not have a sales tax id and does not anticipate selling the shirts (or any other products) in the future.