Form AR2220A-PET — Annualized PET Estimated Tax Instructions

# preamble

INSTR GENERAL INSTRUCTIONS FOR FORM AR2220A-PET If an entity's income varied during the tax year it may be able to lower the 10% underestimated penalty by computing the penalty on an annualized basis. To compute the underestimated penalty on an annualized basis you must first complete Form ARAPET and transfer the annualized estimated tax due per quarter to Form ARPET and complete Form ARPET The completed Forms ARPET and ARA PET must be attached to the entity¶s return Form ARPETK

# Part 1 Annualized Income Method

/LQH Enter the corporation¶s current tax year taxable income for the first  months in Column B  the first  months in Column C and the first months in Column D  /LQH Enter the corporation¶s current tax year taxable income for the first  months in Column A  the first  months in Column B  the first  months in Column C  and the first  months for the tax year in Column D  /LQH Enter on Line  Column A  the annualized taxable income from Line  Column A

on Line  Column B  enter the annualized taxable income for Line  Column B or from Line  Column B  whichever amount is smaller on Line  Column C  enter the annualized taxable income from Line  Column C  or from Line  Column C  whichever amount is smaller on Line  Column

D  enter the annualized taxable income from Line  Column D or From Line  Column D  whichever is smaller /LQH Enter on Line  Column A  tax from tax table based on annualized taxable income listed on Line  Column A

on Line  Column

B  tax based on income listed on Line  Column B

on Line  Column C  tax based on income listed on line  Column C

on Line  Column D  tax based on income listed on Line  Column D  /LQH  Enter onefourth  of the Business Incentive credits allowed on P Line  Form ARPET in Column A  B  C and D  Line  Enter on Line  Column B  the amount listed on Line  Column A

on Line  Column C  the accumulated total of the amounts listed on Line  Column A and B

on Line  Column D  the accumulated total of the amounts listed on line  Column A  B  and C  Note: Column A Lines  through  must be completed before Column B  Column B Lines  through  must be completed before Column C  Column C Line  through  must be completed before Column D 

# Part 2 Required Estimates

Column A must be completed before B  Column B before C and Column C before D  Refer to Note above Line  Enter on Line  Column B  the amount listed on Line   Column A

on Line  Column C  the amount listed on Line   Column B

on Line  Column D  the amount on Line   Column C  Line  The amount listed on Line  Columns A  B  C and D will be entered in Column B on Form ARPET in Part  Lines DQG. ARAPET Instructions R