Arkansas Department of Finance and Administration Forms & Instructions
Form AR2220-CT — Underpayment of Estimated Tax (Corporate) Instructions
preamble
INSTRUCTIONS FOR FORM AR2220-CT PART 1 Line 1: Enter current year tax liability. If this is $1,000.00 or less, you are Line 11: Enter the date in Col. A and the amount in Col. B of the Required 4th not subject to an Underestimate Penalty. Quarter Estimated Payment (Part 1, Line 3 divided by 4 quarters or from Form AR2220A-CT, Line 20). Line 2: (a) Enter 90% of the dollar amount entered on line 1. Lines 12 and 13: Enter the dates in Col. A and the totals (as negative (b) Enter amount of prior year tax liability. numbers) in Col. B (earliest date on line 12) of estimated payments (exclude extension payments) made after the Required 4th Quarter Line 3: Enter lesser of 2(a) or 2(b). Estimated Payment due date and on or before the earlier of the Income Tax Return Due Date or the date the Income Tax Return Line 4: Enter amount of total estimated tax paid. Include estimated tax was Filed and Paid. If one or more lines are left blank, enter the carryforward from prior year, but do not include any amount(s) paid earlier of the Income Tax Return Due Date or the date the Income with extension (Voucher 5). If Line 4 is equal to or greater than Tax Return was Filed and Tax Paid in Col. A and zero (0) in Col. B. Line 3, you are not subject to an underestimate penalty provided the correct amount of estimates were timely filed and paid The income tax return due date is the 15th day of the 4th month after the close of the tax year. Estimates are due on the 15th day of the 4th, 6th, 9th and 12th month of the tax year. Line 14: Enter the earlier of the Income Tax Return Due Date OR the date the Income Tax Return was filed and the tax Paid in full PART 2
COLUMN C
`lirjkp ^ ~-# _ EklqbW Complete Columns A and B first Column C second, Column D third, and Column E fourth) Lines 2 through 13: Follow instructions between Columns B and C. Line 1: Enter the dates in Col. A and the total amount in Col. B of Estimated Example add Col. B Line 1 to Col. B Line 2 and enter the number (as Credit Carryforward from previous tax year or other payments positive or negative) in Col. C Line 2; Add Col. C Line 2 to Col. B Line 3 made toward the tax liability that were made on or before the and enter the number (as positive or negative) in Col. C Line 3; etc. required 1st Quarter Estimated Payment due date.
COLUMN D
Line 2: Enter the date in Col. A and the amount in Col. B of the Required 1st Lines 2 through 13: Follow instructions between Columns C and D for Quarter Estimated Payment (Part 1, Line 3 divided by 4 quarters or from Form AR2220A-CT, Line 20). each line in Column C that contains a positive amount. Enter in Column D the diႇerences in days between the dates in Column Lines 3 and 4: Enter the dates in Col. A and the totals (as negative A that are referenced in the instructions. Example - If Col. C Line 2 numbers) in Col. B (earliest date on line 3) of estimated payments contained a positive amount in Col D Line enter the diႇerence (exclude extension payments) made after the Required 1st in days between the dates in Col. A Line 3 and Col. A Line 2; if Quarter Estimated Payment due date and on or before the Col. C Line 2 contained a negative amount, leave Col. D Line 2 Required 2nd Quarter Estimated Payment due date. If one or more blank or enter zero (0). lines are left blank, enter the Required 2nd Quarter Estimated
COLUMN E
Payment due date in Col. A and zero (0) in Col B. Line 5: Enter the date in Col. A and the amount in Col. B of the Required Lines 2 through 13: For each line in Column D that contains an entry 2nd Quarter Estimated Payment (Part 1, Line 3 divided by 4 of days, follow instructions at the top of Column E and enter the quarters or from Form AR2220A-CT, Line 20). amounts as whole dollars. Example - If Col. D Line 2 contained an entry of days, multiply the amount in Col. C Line 2 by the days Lines 6 and 7: Enter the dates in Col. A and the totals (as negative in Col. D Line 2 (days underpaid) and multiply this product by numbers) in Col. B (earliest date on line 6) of estimated payments .00027397; enter this product on Col. E Line 2. If Col. D Line 2 was (exclude extension payments) made after the Required 2nd blank or contained a zero (0), enter a zero (0) on Col. E Line 2. Quarter Estimated Payment due date and on or before the Required 3rd Quarter Estimated Payment due date. If one or more Line 14: Total all amounts in Col. E on Lines 2 through 13. This is your total lines are left blank, enter the Required 3rd Quarter Estimated Penalty for Underpayment of Estimated Tax to enter on Line 45 of Payment due date in Col. A and zero (0) in Col. B. the Arkansas Corporation Income Tax Return, Form AR1100CT. Line 8: Enter the date in Col. A and the amount in Col. B of the Required PART 3 3rd Quarter Estimated payment (Part 1, Line 3 divided by 4 quarters or from Form AR2220A-CT, Line 20). If one of the exceptions listed in Part 3 of Form AR2220-CT applies to you, it is not necessary to complete Form AR2220-CT provided the appropriate Lines 9 and 10: Enter the dates in Col. A and the totals (as negative numeric character identifying your exception is listed in the block on page 2, numbers) in Col. B (earliest date on line 9) of estimated payments schedule B line 16 on Form AR1100CT. (exclude extension payments) made after the Required 3rd Quarter Estimated payment due date and on or before the Required 4th Quarter Estimated Payment due date. If one or more lines are left blank, enter the Required 4th Quarter Estimated Payment due date in Col. A and zero (0) in Col. B. AR2220-CT Inst. Pg. 1 (R 7/9/2024)
Example 1 for AR2220-CT Form Taxpayer: ABC Corporation Tax Year End: 06/30/25 Current Year Tax Liability: $18,418 Due Date of Return: 10/15/25 Date Return Filed: 10/15/25 Previous Year Tax Liability: $18,624 Est. Tax Carryforward Estimated
Extension from Prior Tax Year: $0.00 Pymts Made: 10/16/24 $4,144 Pymt Made: 10/15/25 $1,000
12/15/24 $3,144
MPLNRLOR ATIMQQ MSLNTLOR ANIOQQ
NOTE: Part 3 of the AR2220-CT Form not included below due to space limitations AR2220-CT State of Arkansas Corporation FEIN ABC Corporation 98-7654321
PART 1 DETERMINING TAX AMOUNT REQUIRED TO BE ESTIMATED (Round all entries to whole dollars) 1. Tax Liability for Year Ending 06 / 30 / 2025 (Enter amount from appropriate line on Arkansas return) ............................ 18,418
(If Line 1 is $1,000 or less, you are not subject to an underestimate penalty) 2. (a) 90% of Line 1: .............................................................................................................................................................. 16,576
(b) Prior Year Tax Liability: (Enter amount from appropriate line on prior year Arkansas return) ............................................ 18,624 3. Enter Lesser of 2(a) or 2(b): (Divide entry by 4 for Part 2 Lines 2, 5, 8, and 11) ..................................................................... 16,576 4. Total Estimated Tax Paid: (Including estimate carryforward from prior year) ........................................................................ 15,576
(If Line 4 is equal to or greater than Line 3 you are not subject to an underestimate penalty, provided the correct amount of quarterly estimated tax payments as entered in Part Lines and were timely filed and paid
PART 2 COMPUTATION OF UNDERESTIMATED PENALTY (Round all entries to whole dollars) klqbW Complete Columns A and B first Column C A B C D E
second, Column D third, and Column E fourth. Date Amounts Cumulative Days Penalty
Enter pmts. Col. Col. C X
as (-) Underpay (+) C (+) Col. D X Overpay (-) Amts. 1. Estimated Credit Carryforwards and Payments made .00027397
on or before the 1st Quarter Due Date: 10/16/24 < 4,144.00 > Only 10/16/24 4,144.05 0.05 2. Required 1st Quarter Estimated Payment: B1+B2= A3-A2= 3. Est. Pmt. made after Col. A, Ln.2 and on or before
Col. A, Ln. 5. If blank, enter Col. A, Ln. 5 date in Col. A: 12/15/24 < > C2+B3= 0.05 A4-A3= 4. Est. Pmt. made after Col. A, Ln. 3 and on or before 12/15/24 < 0.05
Col. A, Ln. 5. If blank, enter Col. A, Ln. 5 date in Col. A: > C3+B4= A5-A4= 5. Required 2nd Quarter Estimated Payment: 12/15/24 4,144.05 C4+B5= 4,144.10 A6-A5= 103.32 6. Est. Pmt. made after Col. A, Ln. 5 and on or before 03/15/25 < 3,144.00 > C5+B6= 1,000.10
Col. A, Ln. 8. If blank, enter Col. A, Ln. 8 date in Col. A: A7-A6= 7. Est. Pmt. made after Col. A, Ln. 6 and on or before 03/15/25 < 1,000.10
Col. A, Ln. 8. If blank, enter Col. A, Ln 8 date in Col. A: > C6+B7= A8-A7= 03/15/25 4,144.05 5,144.15 85.97 8. Required 3rd Quarter Estimated Payment: C7+B8= A9-A8= 9. Est. Pmt. made after Col. A, Ln. 8 and on or before MSLNTLOR Y TIMQQKMM [ `UH_VZ (1,899.85)
Col. A, Ln. 11. If blank, enter Col. A, Ln.1 date in Col. A: A10-A9= 10. Est. Pmt. made after Col. A, Ln. 9 and on or before
Col. A, Ln.11. If blank, enter Col. A, Ln.11 date in Col. A: MSLNTLOR Y NIOQQKMM [ `VH_NMZ (3,143.85) A11-A10= 06/17/25 4,144.05 1,000.20 33.43 11. Required 4th Quarter Estimated Payment: C10+B11= A12-A11= 122 12. Est. Pmt. made after Col. A, Ln. 11 and on or before
Col. A, Ln 14. If blank, enter Col. A, Ln.14 date in Col. A: 10/15/25 < > C11+B12= 1,000.20 A13-A12= 13. Est. Pmt. made after Col. A, Ln. 12 and on or before 10/15/25 < 1,000.20
Col. A, Ln.14. If blank,, enter Col. A, Ln.14 date in Col. A: > C12+B13= A14-A13= 14. Earlier of the Income Tax Return Due Date or the Income 10/15/25
Tax Return Filed Date with complete Tax Payment: Total Penalty (Total Col. E): 222.72 AR2220-CT Inst. Pg. 2 (R 6/25/2025)
Example 2 for AR2220-CT Form Taxpayer: XYZ Corporation Tax Year End: 12/31/25 Current Year Tax Liability: $20,000 Due Date of Return: 4/15/26 Date Return Filed: 10/15/26 Previous Year Tax Liability: $40,000 Est. Tax Carryforward Estimated
Extension from Prior Tax Year: $2,000 Pymts Made: 04/15/25 $3,000 Pymt Made: 4/15/26 $3,000
12/16/25 $10,000
NOTE: Part 3 of the AR2220-CT Form not included below due to space limitations AR2220-CT State of Arkansas Corporation FEIN XYZ Corporation 12-3456789
PART 1 DETERMINING TAX AMOUNT REQUIRED TO BE ESTIMATED (Round all entries to whole dollars) 1. Tax Liability for Year Ending 12 / 31 / 2025: (Enter amount from appropriate line on Arkansas return) ........................... 20,000
(If Line 1 is $1,000 or less, you are not subject to an underestimate penalty) 18,000 2. (a) 90% of Line 1: ..............................................................................................................................................................
40,000
(b) Prior Year Tax Liability: (Enter amount from appropriate line on prior year Arkansas return) ............................................ 18,000 3. Enter Lesser of 2(a) or 2(b): (Divide entry by 4 for Part 2 Lines 2, 5, 8, and 11) ..................................................................... 15,000 4. Total Estimated Tax Paid: (Including estimate carryforward from prior year) ........................................................................
(If Line 4 is equal to or greater than Line 3 you are not subject to an underestimate penalty, provided the correct amount of quarterly estimated tax payments as entered in Part Lines and were timely filed and paid
PART 2 COMPUTATION OF UNDERESTIMATED PENALTY (Round all entries to whole dollars) A B C D E klqbW Complete Columns A and B first Column C Date Amounts Cumulative Days Penalty
second, Column D third, and Column E fourth. Enter pmts. Col. Col. C X
as (-) Underpay (+) C (+) Col. D X
Overpay (-) Amts. .00027397 1. Estimated Credit Carryforwards and Payments made ECF and Only
on or before the 1st Quarter Due Date: 04/15/25 < 5,000 > 2. Required 1st Quarter Estimated Payment: 04/15/25 4,500 A3-A2= B1+B2= (500) 3. Est. Pmt. made after Col. A, Ln.2 and on or before
Col. A, Ln. 5. If blank, enter Col. A, Ln. 5 date in Col. A: 06/17/25 < 0 > C2+B3= (500) A4-A3= 4. Est. Pmt. made after Col. A, Ln. 3 and on or before
Col. A, Ln. 5. If blank, enter Col. A, Ln. 5 date in Col. A: > C3+B4= 06/17/25 < 0 (500) A5-A4= 5. Required 2nd Quarter Estimated Payment: 06/17/25 4,500 C4+B5= 4,000 A6-A5= 92 6. Est. Pmt. made after Col. A, Ln. 5 and on or before
Col. A, Ln. 8. If blank, enter Col. A, Ln. 8 date in Col. A: 09/16/25 < 0 > C5+B6= 4,000 A7-A6= 7. Est. Pmt. made after Col. A, Ln. 6 and on or before
Col. A, Ln. 8 . If blank, enter Col. A, Ln 8 date in Col. A: 09/16/25 < 0 > C6+B7= 4,000 A8-A7= 8. Required 3rd Quarter Estimated Payment: 09/15/25 4,500 C7+B8= 8,500 A9-A8= 91 9. Est. Pmt. made after Col. A, Ln. 8 and on or before
Col. A, Ln. 11. If blank, enter Col. A, Ln. 11 date in Col. A: 12/16/25 < 10,000 > C8+B9= (1,500) A10-A9= 0 10. Est. Pmt. made after Col. A, Ln. 9 and on or before
Col. A, Ln. 11. If blank, enter Col. A, Ln. 11 date in Col. A: 12/16/25 < 0 > C9+B10= (1,500) A11-A10= 0 11. Required 4th Quarter Estimated Payment: 12/16/25 4,500 C10+B11= 3,000 A12-A11= 122
12. Est. Pmt. made after Col. A, Ln. 11 and on or before > C11+B12= 3,000 A13-A12= 0
Col. A, Ln. 14. If blank, enter Col. A, Ln. 14 date in Col. A: 04/15/26 < 0 13. Est. Pmt. made after Col. A, Ln. 12 and on or before
Col. A, Ln. 14. If blank, enter Col. A, Ln. 14 date in Col. A: 04/15/26 < 0 > C12+B13= 3,000 A14-A13= 0 14. Earlier of the Income Tax Return Due Date or the Income 04/15/26
Tax Return Filed Date with complete Tax Payment: Total Penalty (Total Col. E): AR2220-CT Inst. Pg. 3 (R 6/25/2025)
Source: official text