Form AR2220-PET — Underpayment of Estimated Tax (PET) Instructions

# INSTRUCTIONS FOR FORM AR2220-PET

# UNDERPAYMENT OF ESTIMATED TAX BY PASS-THROUGH ENTITY PART 1

Line 1: Enter current year tax liability. If this is $1,000.00 or less, you are not subject to an Underestimate Penalty.
Line 2: (a) Enter 90% of the dollar amount entered on line 1.
(b) Enter amount of prior year tax liability.
Line 3: Enter lesser of 2(a) or 2(b).
Line 4: Enter amount of total estimated tax paid. Include estimated tax carryforward from prior year, but do not include any amount(s) paid with extension (Voucher 5). If Line 4 is equal to or greater than Line 3, you are not subject to an underestimate penalty provided the correct amount of estimates were timely filed and paid.
Estimates are due on the 15th day of the 4th, 6th, 9th and first month after the end of the tax year.

# PART 2

COLUMNS A and B (NOTE: Complete Columns A and B first, Column C second, Column D third, and Column E fourth) Line 1: Enter the dates in Col. A and the total amount in Col. B of Estimated Credit Carryforward from previous tax year or other payments made toward the tax liability that were made on or before the required 1st Quarter Estimated Payment due date.
Line 2: Enter the date in Col. A and the amount in Col. B of the Required 1st Quarter Estimated Payment (Part 1, Line 3 divided by 4 quarters or from Form AR2220A, Line 20).
Lines 3 and 4: Enter the dates in Col. A and the totals (as negative numbers) in Col. B (earliest date on line 3) of estimated payments (exclude extension payments) made after the Required 1st Quarter Estimated Payment due date and on or before the Required 2nd Quarter Estimated Payment due date. If one or more lines are left blank, enter the Required 2nd Quarter Estimated 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 2nd Quarter Estimated Payment (Part 1, Line 3 divided by 4 quarters or from Form AR2220A, Line 20).
Lines 6 and 7: Enter the dates in Col. A and the totals (as negative numbers) in Col. B (earliest date on line 6) of estimated payments (exclude extension payments) made after the Required 2nd Quarter Estimated Payment due date and on or before the Required 3rd Quarter Estimated Payment due date. If one or more lines are left blank, enter the Required 3rd Quarter Estimated Payment due date in Col. A and zero (0) in Col. B.
Line 8: Enter the date in Col. A and the amount in Col. B of the Required 3rd Quarter Estimated payment (Part 1, Line 3 divided by 4 quarters or from Form AR2220A, Line 20).
Lines 9 and 10: Enter the dates in Col. A and the totals (as negative numbers) in Col. B (earliest date on line 9) of estimated payments (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-PET Inst. Pg. 1 (R 6/9/2022)
Line 11: Enter the date in Col. A and the amount in Col. B of the Required 4th Quarter Estimated Payment (Part 1, Line 3 divided by 4 quarters or from Form AR2220A, Line 20).
Lines 12 and 13: Enter the dates in Col. A and the totals (as negative numbers) in Col. B (earliest date on line 12) of estimated payments (exclude extension payments) made after the Required 4th Quarter Estimated Payment due date and on or before the earlier of the Income Tax Return Due Date or the date the Income Tax Return was Filed and Paid. If one or more lines are left blank, enter the earlier of the Income Tax Return Due Date or the date the Income Tax Return was Filed and Tax Paid in Col. A and zero (0) in Col. B.
The income tax return due date is the 15th day of the 4th month after the close 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.

# COLUMN C

Lines 2 through 13: Follow instructions between Columns B and C.
Example add Col. B Line 1 to Col. B Line 2 and enter the number (as positive or negative) in Col. C Line 2; Add Col. C Line 2 to Col. B Line 3 and enter the number (as positive or negative) in Col. C Line 3; etc.

# COLUMN D

Lines 2 through 13: Follow instructions between Columns C and D for each line in Column C that contains a positive amount. Enter in Column D the differences, in days, between the dates in Column A that are referenced in the instructions. Example - If Col. C Line 2 contained a positive amount, in Col. D Line 2 enter the difference in days between the dates in Col. A Line 3 and Col. A Line 2; if
Col. C Line 2 contained a negative amount, leave Col. D Line 2 blank or enter zero (0).

# COLUMN E

Lines 2 through 13: For each line in Column D that contains an entry of days, follow instructions at the top of Column E and enter the 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 in Col. D Line 2 (days underpaid) and multiply this product by .00027397; enter this product on Col. E Line 2. If Col. D Line 2 was blank or contained a zero (0), enter a zero (0) on Col. E Line 2.
Line 14: Total all amounts in Col. E on Lines 2 through 13. This is your total Penalty for Underpayment of Estimated Tax to enter on Line 45 of the Arkansas Corporation Income Tax Return, Form AR1100CT or on Line 18 of Arkansas Pass-Through Entity Tax, Form AR1100PET.

# PART 3

If one of the exceptions listed in Part 3 of Form AR2220 applies to you, it is not necessary to complete Form AR2220 provided the appropriate numeric character identifying your exception is listed in the block on Line 18 Form

# AR1100PET.

Example 1 for AR2220-PET Form
Tax Year End:
Taxpayer: ABC Entity
Due Date of Return: 10/15/25
06/30/25 Current Year Tax Liability: $18,418
Date Return Filed: 10/15/25 Previous Year Tax Liability: $18,624 Estimated
Est. Tax Carryforward Extension
Pymts Made: from Prior Tax Year: $0.00 10/16/24 $4,144 Pymt Made: 10/15/25 $1,000 12/15/24 $3,144 03/15/25 $7,044 07/17/25 $1,244 NOTE: Part 3 of the AR2220-PET Form not included below due to space limitations

AR2220-PET
State of Arkansas

# Pass-Through Entity FEIN

Text version of this table

Pass-Through Entity ABC Entity	FEIN 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 00 (If Line 1 is $1,000 or less, you are not subject to an underestimate penalty) 2. (a) 90% of Line 1: .............................................................................................................................................................. 16,576 00 (b) Prior Year Tax Liability: (Enter amount from appropriate line on prior year Arkansas return) ............................................ 18,624 00 3. Enter Lesser of 2(a) or 2(b): (Divide entry by 4 for Part 2 Lines 2, 5, 8, and 11) ..................................................................... 16,576 00 4. Total Estimated Tax Paid: (Including estimate carryforward from prior year) ........................................................................ 15,576 00		18,418	00
		16,576	00
		18,624	00
		16,576	00
		15,576	00

(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 2, Lines 2, 5, 8, and 11, were timely filed and paid)

# PART 2 COMPUTATION OF UNDERESTIMATED PENALTY

NOTE: Complete Columns A and B first, Column C second, Column D third, and Column E fourth.

Estimated Credit Carryforwards and Payments made on or before the 1st Quarter Due Date:
Required 1st Quarter Estimated Payment:
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:
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:
Required 2nd Quarter Estimated Payment:
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:
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:
Required 3rd Quarter Estimated Payment:
Est. Pmt. made after Col. A, Ln. 8 and on or before Col. A, Ln. 11. If blank, enter Col. A, Ln.1 date in Col. A:
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:
Required 4th Quarter Estimated Payment:
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:
Est. Pmt. made after Col. A, Ln. 12 and on or before

(Round all entries to whole dollars)
A B C D E
Date Amounts Cumulative Days Penalty
Col. C X
Enter pmts. Col.
Col. D X as (-) Underpay (+) C (+)
Overpay (-) Amts. .00027397
Only
10/16/24 < 4,144.00 >
10/16/24 4,144.00 0.00 0 0
B1+B2= A3-A2=
12/15/24 < 0 0.00 0 0

C2+B3= A4-A3=

12/15/24 < 0 0.00 0 0

C3+B4= A5-A4=

12/15/24 4,144.00 4,144.00 90 102.00
C4+B5= A6-A5=
03/15/25 < 3,144.00 > C5+B6= 1,000.00 0 0
A7-A6=
03/15/25 < 0 1,000.00 0 0

C6+B7= A8-A7=

03/15/25 4,144.00 5,144.10 61 86.00
C7+B8= A9-A8=
07/17/25 < 7,044.00 > C8+B9= (1,900.00) 0 0
A10-A9=
07/17/25 < 1,244.00 > C9+B10= (3,144.00) 0 0
A11-A10=
07/17/25 4,144.00 1,000.00 92 25.00
C10+B11= A12-A11=
10/15/25 < 0 1,000.00 0 0

C11+B12= A13-A12=

Col. A, Ln.14. If blank,, enter Col. A, Ln.14 date in Col. A: 10/15/25 < 0 1,000.00 0 0

C12+B13= A14-A13=

Earlier of the Income Tax Return Due Date or the Income Tax Return Filed Date with complete Tax Payment:

AR2220-PET Inst. Pg. 2 (R 6/25/2025)
10/15/25 213.00
Total Penalty (Total Col. E):

Example 2 for AR2220-PET Form
Tax Year End:
Taxpayer: XYZ Entity
Due Date of Return: 4/15/26
12/31/25 Current Year Tax Liability: $20,000
Date Return Filed: 10/15/26 Previous Year Tax Liability: $40,000 Estimated
Est. Tax Carryforward Extension
Pymts Made: from Prior Tax Year: $2,000 04/15/25 $3,000 Pymt Made: 4/15/26 $3,000 01/15/26 $10,000 NOTE: Part 3 of the AR2220-PET Form not included below due to space limitations

AR2220-PET
State of Arkansas

Text version of this table

Pass-Through Entity XYZ Entity	FEIN 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 00 (If Line 1 is $1,000 or less, you are not subject to an underestimate penalty) 2. (a) 90% of Line 1: .............................................................................................................................................................. 18,000 00 (b) Prior Year Tax Liability: (Enter amount from appropriate line on prior year Arkansas return) ............................................ 40,000 00 3. Enter Lesser of 2(a) or 2(b): (Divide entry by 4 for Part 2 Lines 2, 5, 8, and 11) ..................................................................... 18,000 00 4. Total Estimated Tax Paid: (Including estimate carryforward from prior year) ........................................................................ 15,000 00		20,000	00
		18,000	00
		40,000	00
		18,000	00
		15,000	00

# Pass-Through Entity FEIN

Tax Liability for Year Ending 12 / 31 / 2025: (Enter amount from appropriate line on Arkansas return) … 20,000

(a) 90% of Line 1: …

Enter Lesser of 2(a) or 2(b): (Divide entry by 4 for Part 2 Lines 2, 5, 8, and 11) … 15,000 00
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 2, Lines 2, 5, 8, and 11, were timely filed and paid) PART 2 COMPUTATION OF UNDERESTIMATED PENALTY (Round all entries to whole dollars) NOTE: Complete Columns A and B first, Column C second, Column D third, and Column E fourth.
Estimated Credit Carryforwards and Payments made on or before the 1st Quarter Due Date:
Required 1st Quarter Estimated Payment:
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:
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:
Required 2nd Quarter Estimated Payment:
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:
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:
Required 3rd Quarter Estimated Payment:
Est. Pmt. made after Col. A, Ln. 8 and on or before A B C D E Date Amounts Cumulative Days Penalty

Col. C X
Enter pmts. Col.
Col. D X as (-) Underpay (+) C (+)
Overpay (-) Amts. .00027397
ECF and
Only
04/15/25 < 5,000 >
(500)
04/15/25 4,500 0 0
A3-A2=
B1+B2=
(500) 0 0
06/17/25 < 0 A4-A3=

C2+B3=

(500)
06/17/25 < 0 0 0

C3+B4= A5-A4=

4,000 A6-A5= 92 101
06/17/25 4,500
C4+B5=
4,000 0 0
09/16/25 < 0

C5+B6= A7-A6=

09/16/25 < 0 4,000 0 0

C6+B7= A8-A7=

09/16/25 4,500 8,500 A9-A8= 91 212
C7+B8=
Col. A, Ln. 11. If blank, enter Col. A, Ln. 11 date in Col. A:

Est. Pmt. made after Col. A, Ln. 9 and on or before 01/15/26 < 10,000 > C8+B9= (1,500) A10-A9= 0 0 Col. A, Ln. 11. If blank, enter Col. A, Ln. 11 date in Col. A:
Required 4th Quarter Estimated Payment:
Est. Pmt. made after Col. A, Ln. 11 and on or before (1,500) A11-A10= 0 0 01/15/26 < 0 > C9+B10= 01/15/26 4,500 3,000 A12-A11= 91 75 C10+B11= Col. A, Ln. 14. If blank, enter Col. A, Ln. 14 date in Col. A:
Est. Pmt. made after Col. A, Ln. 12 and on or before 04/15/26 < 0 3,000 A13-A12= 0 0

C11+B12=

Col. A, Ln. 14. If blank, enter Col. A, Ln. 14 date in Col. A: 04/15/26 < 0 3,000 A14-A13= 0 0

C12+B13=

Earlier of the Income Tax Return Due Date or the Income Tax Return Filed Date with complete Tax Payment:

AR2220-PET Inst. Pg. 3 (R 6/25/2025)
04/15/26 Total Penalty (Total Col. E):