(b) Underestimated tax penalty — Arkansas Code § 26-18-208(6).

1. (1) The underestimated tax penalty shall not be imposed if the tax liability for the current tax year is two hundred fifty dollars ($250.00) or less.

2. (2) The underestimated tax penalty shall not be imposed if the:

   1. (A) Current year payments made equal or exceed:

(i) Ninety percent (90%) of the current year tax liability; or

1. (ii) One hundred percent (100%) of the preceding tax year liability; and

   1. (B) Preceding tax year was twelve (12) months.
2. (3) The underestimated tax penalty is calculated by multiplying the underpayment for each quarter by .00027397, then multiplying this product by the number of days from the date the estimated payment was due to the date estimate was paid, the date the return is filed, or the due date of the return, whichever is earlier.

3. (4)

   1. (A) For purposes of this part, payments include taxes withheld from the taxpayer’s wages and estimated tax payments.
   2. (B) Estimated tax payments must be made by the required due dates.
   3. (C) Payments made with an extension of time to file individual income tax returns do not constitute estimated tax payments.