Arkansas Penalty for Underpayment of Estimated Tax

Penalty for Underpayment of Estimated Tax
2022_AR2210_BC.pdf
AR2210

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CLEAR FORM

2022

ITPE221
ARKANSAS INDIVIDUAL INCOME TAX

Primary’s legal name

PENALTY FOR UNDERPAYMENT
OF ESTIMATED TAX

Primary’s social security number

PART I - EXCEPTION
If you qualify for an exception 1 through 5 (see list on back of this form) from the Underestimate Penalty,
enter the exception on the line to the right and on Form AR1000F/AR1000NR, box 52A or AR1002F/AR1002NR, box 36A __________________
If you qualify for an exception, stop here. Do not complete Part II or Part III. Attach this form to Form
AR1000F/AR1000NR. (To claim exception 6, do not complete Form AR2210. For exception 6, use Form AR2210A only.)
If you do not qualify for an exception, complete Part II below.

PART II - REQUIRED ANNUAL PAYMENT
1. 2022 net tax: (line 38, Form AR1000F or line 38D, AR1000NR or line 24B, AR1002F or line 24F, AR1002NR) ....................... 1
2. Enter 90% (.90) of the amount shown on line 1: ............................................................................................................... 2
3. 2022 Arkansas income tax withheld: (line 39, AR1000F/AR1000NR or line 25, AR1002F/AR1002NR) ....................... 3
4. Subtract line 3 from line 1: (If the result is $1,000 or less, stop here. Do not complete this schedule.) ................. 4
5. 2021 net tax: (line 38, AR1000F or line 38D, AR1000NR or line 24B, AR1002F or line 24F, AR1002NR)

5

6. Required annual payment. Enter the smaller of line 2 or line 5: ....................................................................................... 6
If you do not qualify for an exception (Part I) and line 6 is more than line 3, complete Part III below.

PART III - COMPUTING THE PENALTY

PAYMENT DUE DATES
A
4-15-2022

B
6-15-2022

7. Required installments. Enter 1/4 (.25) of line 6, AR2210 in each column: ...... 7
8. Estimated tax paid and tax withheld. For column A only, enter the
amount from line 8 on line 12. If line 8 is equal to or greater than line 7 for
all payment periods, stop here. You do not owe the penalty. Complete
lines 9 through 15 of each column before going to the next column: .......................... 8
9. Enter amount, if any, from line 15 of previous column: ................................................ 9
10. Add lines 8 and 9: ................................................................................................ 10
11. Add amounts on lines 13 and 14 of previous column: ............................................ 11
12. Subtract line 11 from line 10. If zero or less, enter 0. For column A only,
enter the amount from line 8: ................................................................................. 12
13. If the amount on line 12 is zero, subtract line 10 from line 11.
Otherwise, enter zero: ........................................................................................... 13
14. Underpayment. If line 7 is equal to or greater than line 12, subtract line
12 from line 7. Then go to line 9 of the next column. Otherwise, go to line 15: ......... 14
15. Overpayment. If line 12 is more than line 7, subtract line 7
from line 12, then go to line 9 of the next column: .................................................. 15
16. Number of days from the payment due date shown at top of column to the
date the amount on line 14 was paid, or 4-15-2023, whichever is earlier: ................. 16
17. Underpayment
from line 14
X

Number of
days from line 16
X .10 .............................................. 17
365
18. PENALTY. Add all the amounts on line 17 in all columns.
Enter the total here and on Form AR1000F/AR1000NR, line 52B or Form AR1002F/AR1002NR, line 36B: ................... 18

AR2210 (R 06/06/2022)

C
9-15-2022

D
1-15-2023

INSTR

Estimated Income Tax Penalty
1. (a) Every taxpayer subject to the tax levied by the Arkansas
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a declaration of the estimated tax for the income year if the
taxpayer can reasonably expect the estimated tax to be $1,000
or more and income tax withholdings for the income year do
not equal 90% of the estimated tax.
No penalty shall be imposed for a tax year if the
tax shown on the return for such tax year is less
than $1,000, or where the original amount of
estimated tax is the same amount shown to be
due by the return of the taxpayer for the preceding
income year where such return showing a liability
IRUWD[ZDVÀOHGE\WKHWD[SD\HUIRUWKHSUHFHGLQJ
income year of twelve (12) months.
(b) The declaration of estimated tax shall be made on such forms
and shall include such information as the Commissioner
shall prescribe. Individual forms can be obtained by calling
(501) 682-1100 or from our website www.arkansas.gov/
incometax.




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&RPPLVVLRQHURQRUEHIRUHWKH¿IWHHQWKth) day of the fourth
th) month of the income year of the taxpayer. The remaining
¿OLQJVDQGSD\PHQWVDUHGXHRQWKH¿IWHHQWKth) day of the
sixth (6th) month, ninth (9thPRQWKDQG¿UVWst) month after
the close of the income year.
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WKHUHTXLUHPHQWVIRU¿OLQJDGHFODUDWLRQDIWHUWKH¿IWHHQWKth)
GD\RIWKHIRXUWKth) month of the income year, shall make
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tax payment date.

2. (a) A taxpayer who makes a declaration of estimated tax for the
income year shall estimate an amount not less than ninety
percent (90%) of the amount actually due.
(b) If a taxpayer fails to make a declaration of estimated tax and
pay on the quarterly due date the equivalent to at least ninety
percent (90%) of the amount actually due, a penalty of ten
percent (10%) per annum shall be added to the amount of
the underestimate. The ten percent (10%) per annum penalty
will be applied on a quarterly basis. A taxpayer who has an
uneven income may compute the ten percent (10%) penalty on
an annualized basis. The underestimate penalty is computed
on the lesser of the current year’s tax liability or the previous
year’s tax liability.
3. (a) The penalty provided in ACA §26-18-208 (Supp. 1997) for
failure to make correct payments of estimated income tax
shall not apply to the exceptions noted hereafter.

AR2210 Inst. Page 1 (R 10/23/2019)

EXCEPTIONS
1. Taxpayers whose income from farming for the income year can
reasonably be expected to amount to at least two thirds (2/3) of
the total gross income from all sources for the income year, may
¿OHVXFKGHFODUDWLRQDQGSD\WKHHVWLPDWHGWD[RQRUEHIRUHWKH
¿IWHHQWKth) day of the second (2nd) month after the close of
WKHLQFRPH\HDU,QOLHXRI¿OLQJDQ\GHFODUDWLRQ\RXPD\¿OHDQ
LQFRPHWD[UHWXUQDQGSD\WKHWD[RQRUEHIRUHWKH¿IWHHQWKth)
day of the third (3rd) month after the close of the income year.
2. ,QOLHXRI¿OLQJWKHIRXUWKth) quarter installment the taxpayer may
¿OHDQLQFRPHWD[UHWXUQDQGSD\WKHWD[RQRUEHIRUH-DQXDU\
RURQWKHODVWGD\RIWKH¿UVWst) month after the close of the
income year.
3. No penalty shall be imposed for a tax year if:
(a) the preceding tax year was a tax year of twelve (12) months,
and
(b) the taxpayer did not have a tax liability for the preceding tax year
and
(c) the taxpayer was a resident of Arkansas throughout the
preceding tax year.
4. No penalty shall be imposed with respect to any underpayment
if the Commissioner of Revenue determines that by reasons of
casualty, disaster, or other unusual circumstances the imposition
of such penalty would be against equity and good conscience.
5. No penalty shall be imposed with respect to any underestimate
or underpayment if the Commissioner determines that:
(a) the taxpayer
(i) retired after having attained age 62, or
(ii) became disabled in the tax year for which such estimated
payments were required to be made or in the tax year
preceding such tax year, and
(b) such underpayment was due to reasonable cause and not
to willful neglect.
6. Taxpayers with varied income may benefit by
computing the ten percent (10%) penalty on an
annualized basis. The penalty is computed using
Form AR2210A which must be submitted with Form
AR1000F/AR1000NR or Form AR1002F/AR1002NR. If
penalty computed using Form AR2210A, write “6” on
Form AR1000F/AR1000NR, Box 52A or Form AR1002F/
AR1002NR, Box 36A.

INSTR

Estimated Income Tax Penalty
PENALTY COMPUTATION EXAMPLE
Part II: The underpayment of estimated tax shall be computed as follows: The number of days from the due date of the quarterly payment
WRWKHGDWHSD\PHQWLVDFWXDOO\PDGHGLYLGHGE\WLPHVWHQSHUFHQWWLPHVWKHDPRXQWRIXQGHUSD\PHQW
Line 1
Line 2
Line 3
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Line 6


7D[/LDELOLW\
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Payments
$2,000
Line (1) less Line (3)
$3,000
Prior Year Tax Liability
$3,000
Required Annual Payment
$3,000
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Part III:

Required Installments ...................... GLYLGHGE\ 
Payments......................................... GLYLGHGE\ 
Column (a)





Column (b)






Column (c)









Column (d)







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;; $4

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;[ $13

Second Quarter Penalty......$13

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;; $17

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;; $15

Third Quarter Penalty..........$32

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;[ $18

Fourth Quarter Penalty........$18

Total Penalty......................$67

AR2210 Inst. Page 2 (R 7/12/2022)