Form Ar1100esct - Estimated Corporation Income Tax Payment

STATE OF ARKANSAS

Corporation Income Tax

Estimated Tax Declaration Vouchers

and Instructions for Tax Year 2009

WHO MUST MAKE ESTIMATED PAYMENTS.

Every taxpayer subject to the tax levied by Act 118 of 1929, as amended, except estates, shall make and file with the Commissioner of Revenue, Department of Fi-

nance and Administration, a declaration of the estimated tax for the tax year, if such taxpayer can reasonably expect the estimated tax to be more than $1,000.

A corporation with an estimated quarterly income tax liability equal to or greater than $20,000 is required to pay the estimates by the Electronic Funds Trans-

fer (EFT) method. A corporation with an estimated quarterly income tax liability less the $20,000 may elect to pay by the EFT method. Each corporation

participating in the EFT payment method must complete an Arkansas EFT-CT Authorization form, which may be obtained from the Corporation Income Tax

Section. If the corporation is authorized to file and files the quarterly estimated income tax payments through the EFT method, paper estimated vouchers

are not required to be mailed to the Corporation Income Tax Section. A corporation remitting estimated quarterly income tax payments, vouchers 1 through

4, through the EFT method must remit each payment no later than the day before each quarterly due date.

Farming corporations whose income from farming for the tax year can reasonably be expected to amount to at least two-thirds (2/3) of the total gross in-

come from all sources for the tax year, may file such declaration and pay the estimated tax on or before the 15

day of the 2

month after the close of the

tax year. In lieu of filing any declaration, the farming corporation may file an income tax return and pay the tax on or before the 15

day of the 3

month

after the close of the tax year.

WHEN TO FILE ESTIMATED AND EXTENSION PAYMENT VOUCHERS.

A. Estimate Vouchers 1 Through 4: A corporation required to file corporation income tax payment vouchers 1 through 4 must use the forms provided

or approved by the Corporation Income Tax Section to ensure the payment is properly applied. The estimated vouchers, with payments attached, are due

in four (4) equal installments as follows:

1. One-fourth (1/4) on or before the 15

day of the 4

month of the tax year.

2. One-fourth (1/4) on or before the 15

day of the 6

month of the tax year.

3. One-fourth (1/4) on or before the 15

day of the 9

month of the tax year.

4. One-fourth (1/4) on or before the 15

day of the 12

month of the tax year.

A corporation first meeting the requirements for filing a declaration of estimated income tax after the 15

day of the 4

month of the tax year, shall make

and file such declaration on or before the next regular quarterly tax payment due date.

B. Extension Voucher 5: A corporation required to file an extension corporation income tax payment, voucher 5, must submit the voucher, with pay-

ment attached, on or before the 15

day of the third month after the close of the Corporation’s tax year.

An Arkansas corporation income tax return filed after the original due date of two and one-half (2 ½) months after the close of the tax year will be assessed

interest from the original return due date until the date the tax is paid. This will include the assessment of interest on a return filed on a federal or Arkansas

extension, if the tax due as reflected on the return is not paid on or before the original Arkansas return due date. Therefore, to avoid interest, any tax due

reflected on the return must be paid on or before the 15

day of the 3

month after the close of the tax year.

AMENDED DECLARATION.

If, after filing a declaration, the estimated tax is substantially increased or decreased as the result of a change in income or exceptions, an amended dec-

laration should be filed on or before the next regular quarterly tax payment date as set forth in section 3 A above. Form AR1100ESCT shall be used when

it becomes necessary to file such amended declaration. Care must be taken to clearly mark Form AR1100ESCT as being “AMENDED DECLARATION.”

UNDERESTIMATE OF TAX.

A taxpayer who makes a declaration of estimated tax for the tax year shall estimate an amount not less than 90% of the amount actually due. Should a

taxpayer fail to make an estimate on any quarterly due date equivalent to at least 90% of the final tax due, there shall be added a penalty of 10% on the

amount of the underestimate. The penalty herein provided shall not be applicable if the original amount of estimated tax is the same amount shown to be

due by the return of the taxpayer for the preceding year where such return showing a liability for tax was filed by the taxpayer for the preceding year of 12

months. (Refer to instructions on back of Form AR2220.) A taxpayer who has an uneven income may compute the 10% penalty on an annualized basis.

Use Form AR2220A and attach to Form AR2220.

WHERE TO OBTAIN BLANK VOUCHERS OR FILE COMPLETED VOUCHERS.

Blank vouchers may be ordered or obtained through the internet, by Email or by contacting the Corporation Income Tax Section.

Completed estimated and extension corporation income tax payment vouchers, with payments attached, must be mailed or delivered to the Corporation

Income Tax Section.

7. CONTACT INFORMATION.

Mailing Address:

Physical address:

Corporation Income Tax Section

Ledbetter Building, Room 2250

P. O. Box 919