Arkansas Underpayment Penalty

[JViking1]

I have an Arkansas underpayment penalty showing on my return.  We had received notice last year that the state did not receive our form/payment, we sent evidence proving that we had paid/filed and received an approval from the state offices along with paid in full.   This is my only assumption as to why this is showing as we have always paid the full amount due.  I have tried to delete the 2210 form and redownload and read through multiple posts.  What do I need to do to remove this penalty without facing issues.

[ErnieS0]

The underpayment penalty is computed on your 2021 tax information.

The U.S. has a pay-as-you-go system. It’s possible to have an underpayment penalty even if you pay the full amount due, if you did not make estimated payments during the year. 

That’s because interest and penalties are calculated quarterly for the underpayment penalty.

You can’t delete Form 2210 if TurboTax is computing an underpayment penalty because data will continue to feed into the form, and it will repopulate.

Since you are using TurboTax CD/Download, you can check one of thee exemption boxes for a penalty exception.

1. Tap Forms in the top right
2. Select AR2210
3. On page 3 select one of the Exceptions that applies to your situation
4. Tap Step-by-Step in the top right to return to the interview mode