Alabama Administrative Code

(1) (a) Each resident shall file a return for each tax year if single or married but not living with husband or wife, and having for the year a net income (as defined in § 40-18-12) of $1,500 or more; or if married and living with husband or wife and having a net income of $3,000…

(1) Every resident individual taxpayer required to file a return should do so using Form 40 or Form 40A, copies of which may be obtained from the Department. Nonresidents should file using Form 40NR. For use of Form 40A, see Rule 810-3-81-.01. (a) Alabama individual income tax re…

(1) An individual will be granted an automatic six month extension of time for filing an individual income tax return. (2) Except in the case of taxpayers who are outside the United States, extensions will not be granted for more than six months. (3) An individual who fails to fi…

(1) The Department will participate with the Internal Revenue Service in the Federal/State Electronic Filing Program for the joint electronic filing of individual income tax returns, effective for tax year(s) 1997 and after. Notes Ala. Admin. Code r. 810-3-27-.04 New Rule: Filed …

(1) SCOPE - This regulation explains the requirements for an electronic Individual Income Tax Return to be complete and timely filed. Terms are defined to clarify when an electronic return is considered to be timely filed for accepted and rejected returns. (2) Definitions: (a) XM…

(1) SCOPE - This rule defines the information required for the Individual Income Tax declaration for electronic filing which includes forms 40 and 40NR that are filed through the Alabama Individual Modernized E-File Program. (2) The Individual Income Tax Declaration for Electroni…

(1) SCOPE - This rule explains the requirements for software developers to obtain and sustain active approval to provide software that allows individual income tax returns to be electronically filed through the Alabama Individual Modernized E-File program. (2) Software developers…

(1) SCOPE - This rule explains the requirements for electronic return originators and transmitters (not to include software developers and transmitters - See Rule 810-3-27-.07) to obtain and sustain active approval to serve as an Alabama Department of Revenue electronic filing ag…

(1) (a) If an income tax return preparer prepares 11 or more acceptable, original individual income tax returns using tax preparation software in a calendar year, then for that calendar year and for each subsequent calendar year thereafter, all acceptable individual income tax re…

(1) An income tax preparer may be subject to a random monitoring visit for not electronically filing returns or for submitting returns without a two dimensional (2-D) barcode containing the tax return information in a standard format as prescribed by the Department. (2) If it is …

(1) (a) All partnerships having "substantial nexus" from property owned or business conducted in this state shall file the Alabama Form 65 on or before the due date, including extension. All single member limited liability entities having "substantial nexus" from property owned o…

(1) The Department will participate with the Internal Revenue Service in the Federal/State Electronic Filing Program for the joint electronic filing of partnership/LLC returns of income, effective for tax years beginning on or after January 1, 2006. Notes Ala. Admin. Code r. 810-…

(1) SCOPE - This rule defines certain terms used in connection with the Alabama Business Modernized E-File Program. (2) Definitions (a) XML Schema - A single file or collection of files that describe the structure of an XML instance document along with rules for data content and …

(1) SCOPE - This rule defines the information required for the Partnership/LLC Return of Income declaration for electronic filing which includes forms 65 and PTEC that are filed through the Alabama Business Modernized E-File Program. (2) The Partnership/LLC Income Return of Incom…

(1) SCOPE - This rule explains the requirements for software developers to obtain and sustain active approval to provide software that allows partnership/LLC returns to be electronically filed through the Alabama Business Modernized E-File program. (2) Software developers must be…

(1) SCOPE - This rule explains the requirements for electronic return originators and transmitters (not to include software developers - See Rule 810-3-28-.05) to obtain and sustain active approval to serve as an Alabama Department of Revenue electronic filing agent in order to t…

(1) Scope - This rule explains the electronic filing mandate requirements and exclusions for both an income tax return preparer and the Partnership/Limited Liability Company. (2) Definitions. (a) Income tax return preparer - a person, firm or company who meet one of the following…

Notes Ala. Admin. Code r. 810-3-28-.08 New Rule: Filed January 28, 2010, effective March 4, 2010. Repealed by Alabama Administrative Monthly Volume XXXVI, Issue No. 05, February 28, 2018, eff. 3/30/2018. Authors: Jo Ann Ledbetter, Richard Henninger, Ann F. Winborne, CPA Statutory…

(1) SCOPE - To define the filing and payment requirements for an Alabama electronic partnership/LLC return of income filed through the Alabama Business Modernized E-File program. Terms are defined to clarify when an electronic return is considered to be timely filed for accepted …

(1) Every fiduciary, other than one appointed by authority of law in possession of only a part of the property of a taxpayer, shall file a return for the taxpayer for whom he acts if either of the following conditions are met: (a) the net income of the taxpayer is $1,500 or over …

(1) The Department will participate with the Internal Revenue Service in the Federal/State Electronic Filing Program for the joint electronic filing of fiduciary income tax returns, effective for tax years beginning on or after January 1, 2014. Notes Ala. Admin. Code r. 810-3-29-…

(1) SCOPE - This rule defines certain terms used in connection with the Alabama Business Modernized E-File Program. (2) Definitions (a) XML Schema - A single file or collection of files that describe the structure of an XML instance document along with rules for data content and …

(1) SCOPE - This rule defines the information required for the Fiduciary Income Tax declaration for electronic filing through the Alabama Business Modernized E-File Program. (2) The Fiduciary Income Tax Declaration for Electronic Filing requires the following information and auth…

(1) SCOPE - This rule explains the requirements for software developers to obtain and sustain active approval to provide software that allows fiduciary income tax returns to be electronically filed through the Alabama Business Modernized E-File program. (2) Software developers mu…

(1) SCOPE - This rule explains the requirements for electronic return originators and transmitters (not to include software developers - See Rule 810-3-29-.05) to obtain and sustain active approval to serve as a Department electronic filing agent in order to transmit returns thro…

(1) For purposes of the taxes imposed upon the income of estates and trusts and paid by the fiduciary thereof, estates and trusts are classified as either resident or nonresident. (2) Resident Estate or Trust (a) "Resident estate" means the estate of an Alabama resident decedent.…

(1) Scope - This rule explains the electronic filing mandate requirements and exclusions for both an income tax return preparer and an Estate/Trust. (2) Definitions. (a) Income tax return preparer - a person, firm or company who meet one of the following: 1. Any person who prepar…

(1) SCOPE - To define the filing and payment requirements for an Alabama electronic fiduciary income tax return filed through the Alabama Business Modernized E-File program. Terms are defined to clarify when an electronic return is considered to be timely filed for accepted and r…

(1) Salaries, fees, commissions and other income received by officers or agents of the United States, its agencies, instrumentalities, or contractees from the United States or from its agencies and instrumentalities are subject to income taxes levied by the State of Alabama. (a) …

(1) The change in accounting period for single entity taxpayers will change whenever there is an approved federal accounting period change. (a) For corporations, filing Alabama returns on a separate entity basis, which become a member of a federal consolidated group, or cease to …

(1) If a taxpayer changes his accounting period from a calendar year to a fiscal year or from a fiscal year to a calendar year or from one fiscal year to another fiscal year, such change necessitates the filing of a return for a period of less than twelve months. Under no conditi…

Notes Ala. Admin. Code r. 810-3-31-.01 Adopted September 30, 1982. Amended: June 17, 1988; filed July 27, 1988. Amended: Filed May 3, 2000; effective June 7, 2000. Repealed by Alabama Administrative Monthly Volume XXXVI, Issue No. 07, April 30, 2018, eff. 5/24/2018. Authors: Fred…

(1) Taxpayers having income from business activity which is taxable both within and without this state are required to allocate and apportion their taxable income pursuant to the provisions of the Multistate Tax Compact, Chapter 27, Title 40, Code of Ala. 1975. Authors: Verlon R.…

(1) The following organizations are exempt from taxation as provided by § 40-18-32: (a) Labor, agricultural or horticultural organizations. In order to be exempt, these organizations must have no net earnings inuring to the benefit of any member, and have as their object the bett…

Notes Ala. Admin. Code r. 810-3-32-.01.01 New Rule: Filed May 5, 1999; effective June 9, 1999. Repealed by Alabama Administrative Monthly Volume XXXVI, Issue No. 03, December 29, 2017, eff. 1/20/2018. Author: Michael E. Mason, CPA Statutory Authority: Code of Ala. 1975, §§ 17-22A…

(1) (a) An organization is not exempt from tax merely because it is not organized and operated for profit. It must establish its exemption by filing an affidavit showing the character of the organization, the purpose for which it was organized, its actual activities, the sources …

Notes Ala. Admin. Code r. 810-3-32-.03 Adopted: June 17, 1988; filed July 27, 1988. Repealed by Alabama Administrative Monthly Volume XXXVI, Issue No. 03, December 29, 2017, eff. 1/20/2018. Authors: Fred H. Pritchard, John H. Burgess Statutory Authority: Code of Ala. 1975, §§ 40-…

Notes Ala. Admin. Code r. 810-3-34-.01 Repealed by Alabama Administrative Monthly Volume XXXIV, Issue No. 10, July 29, 2016, eff. 8/29/2016. Author: Verlon R. Frost Statutory Authority: Code of Ala. 1975, §§ 40-2A-7(a)(5), 40-18-57.

(1) Corporations may deduct federal income taxes (FIT) paid or accrued during the taxable year and attributable to their Alabama income. The amount and method of deduction to be allowed for state income tax purposes is determined by Alabama Department of Revenue rules. See Standa…

(1) In accordance with the terms of § 40-18-35(b)(1), Code of Ala. 1975, (hereafter "Ala. Code") for purposes of computing its taxable income, a corporation shall add back otherwise deductible interest expenses and costs and intangible expenses and costs directly or indirectly pa…

(1) Definitions. The following terms shall have the following meanings for purpose of these rules. (a) Pass-Through Entity. A Pass-Through Entity is an S Corporation defined in § 40-18-160, Code of Ala. 1975, or a Subchapter K Entity defined in § 40-18-1, Code of Ala. 1975. Singl…

Notes Ala. Admin. Code r. 810-3-38-.01 New Rule: Filed August 26, 1994; effective September 30, 1994. Repealed by Alabama Administrative Monthly Volume XXXVI, Issue No. 03, December 29, 2017, eff. 12/18/2018. Author: Jeff Taylor, Income Tax Division Statutory Authority: Code of A…

For an Approved Company whose project is financed by the State Industrial Development Authority's Project Obligations, the following shall be allowed as credits against the state corporate income tax imposed by Section 40-18-31: (1) The credit available to an Approved Company pur…

(1) (a) Each corporation, joint stock company, or association, except as provided in (b), subject to Alabama income tax shall file a separate return for each tax year, including organizations subject to taxation on unrelated business taxable income as provided in Section 40-18-32…

(1) A corporation or an Alabama affiliated group will be granted an automatic extension to file its Alabama corporate income tax return consistent with the extension allowed for the taxpayer's corresponding federal income tax return plus one month. The corresponding federal exten…

(1) Election to file an Alabama consolidated return. In lieu of filing separate entity returns in Alabama, a group of related corporations may elect to be treated as an Alabama affiliated group filing a consolidated corporate income tax return. Such election may be made by submit…

Notes Ala. Admin. Code r. 810-3-39-.04 New Rule: Filed May 3, 2000, effective June 7, 2000. Repealed by Alabama Administrative Monthly Volume XXXVI, Issue No. 02, November 30, 2017, eff. 1/1/2018. Authors: Michael E. Mason, Commissioner's Office; Verlon Frost, Melody Moncrief, In…

(1) Except as provided in paragraph (2), for any taxable year beginning after the expiration of the election period set forth in Section 40-18-39(c)(6), Code of Ala. 1975, each member of the Alabama affiliated group subject to Alabama income tax shall file a separate return unles…

Notes Ala. Admin. Code r. 810-3-39-.06 New Rule: Filed December 15, 1999; effective January 19, 2000. Repealed by Alabama Administrative Monthly Volume XXXVI, Issue No. 02, November 30, 2017, eff. 1/1/2018. Authors: Michael E. Mason, Commissioner's Office; Verlon Frost, Individua…

(1) The Department will participate with the Internal Revenue Service in the Federal/State Electronic Filing Program for the joint electronic filing of Corporate Income Tax Returns, effective for tax years beginning on or after January 1, 2005. Notes Ala. Admin. Code r. 810-3-39-…