AR2220-CT: Underpayment of Estimated Tax (Revision)
Arkansas · Arkansas DFA · Used for tax years 2025
Arkansas Form AR2220-CT is used by corporations to determine required estimated tax payments and calculate any underpayment penalty. It records tax liability, estimated payments, payment dates, and any claimed exception to the penalty.
Who files this form
Form AR2220-CT is for corporations figuring an Arkansas estimated tax underpayment penalty for tax year 2025.
The form states that you are not subject to an underestimate penalty if your tax liability on Part 1, line 1, is $1,000 or less. It also lists other exceptions to the penalty.
When it's due
For tax year 2025, the form lists these special timing rules:
- Farming income exception: If farming income can reasonably be expected to be at least two-thirds of total gross income, you may file the declaration and pay estimated tax by the 15th day of the second month after the tax year closes. Instead, you may file an income tax return and pay the tax by the 15th day of the fourth month after the tax year closes.
- Alternative to the fourth-quarter installment: You may file an income tax return and pay the tax by January 31 or the last day of the first month after the tax year closes.
The supplied text does not print the regular quarterly estimated payment due dates.
What you'll need
Have these forms and records available:
- Your Arkansas Form AR1100CT for the tax year, showing your tax liability.
- Your prior-year Arkansas return, showing the prior-year tax liability.
- Estimated tax payment amounts and dates, including any estimated tax credit carried forward from the prior year.
- The corporation's name and FEIN.
- Your income tax return filing date and complete tax payment information for Part 2, line 14.
- Completed Form AR2220A-CT if you calculate the penalty on an annualized basis.
How to file
If you calculate the penalty on an annualized basis, attach completed Form AR2220A-CT. The form states that AR2220A-CT must be submitted with Form AR1100CT.
If you claim a listed exception, Part 3 directs you to check the corresponding numbered box and enter that number in the box on Form AR1100CT, line 45.
The supplied text does not provide a mailing address or e-file instructions.
Common mistakes
- Not rounding entries: Parts 1 and 2 say to round all entries to whole dollars.
- Completing columns out of order: Complete Part 2 columns A and B first, then C, then D, then E.
- Overlooking payment timing: Paying enough estimated tax in total does not by itself avoid the penalty. The correct quarterly amounts must also have been timely filed and paid.
- Missing the extension checkbox: Check the box if you filed a state or automatic federal extension.
- Leaving out the annualized calculation: Attach completed Form AR2220A-CT if you use the annualized method.
Questions people ask
How is the required estimated tax amount determined?
Part 1 compares 90% of the current-year tax liability with the prior-year tax liability. Enter the smaller amount on line 3, then divide it by four for the required quarterly payments in Part 2.
Do I include an estimated tax carryforward from last year?
Yes. Part 1, line 4, includes the estimated tax carryforward from the prior year in total estimated tax paid.
What if I had no tax liability last year?
The form provides a no-penalty exception if the preceding tax year covered 12 months, you had no tax liability for that year, and you were an Arkansas resident throughout that year.
Can unusual circumstances qualify for penalty relief?
Yes. No penalty is imposed to the extent the Commissioner of Revenue determines that casualty, disaster, or other unusual circumstances would make the penalty against equity and good conscience.