Alabama Administrative Code

(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 Corporate Income Tax declaration for electronic filing through the Alabama Business Modernized E-File Program (MeF). (2) The Corporate Income Tax Declaration for Electronic Filing requires the following information an…

(1) SCOPE - This rule explains the requirements for software developers to obtain and sustain active approval to provide software that allows Corporate 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 810-3-39-.10) to obtain and sustain active approval to serve as the Department electronic filing agent in order to transmit returns th…

(1) Scope - This rule explains the electronic filing mandate requirements and exclusions for both an Income Tax Return preparer and the C-Corporation or S-Corporation. (2) Definitions. (a) Income Tax Preparer - a person, firm or company who meet one of the following: 1. Any perso…

(1) SCOPE - To define the filing and payment requirements for an Alabama electronic Corporate 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…

01Interest Or Other Income Received From Obligations Of The United States Or Its Possessions, Agencies, Or Instrumentalities. Section 40-18-4, Code of Ala. 1975 is superseded by § 40-18-14(2) d which excludes this interest income from obligations of the United States or its posse…

(1) All tax shall be reported on forms prescribed by the Department. Each taxpayer shall file a return or returns with the Department for each tax year on forms prescribed for taxpayers of the class within which the taxpayer falls. Should the Department not furnish copies of the …

(1) Whole Dollar Reporting Mandatory. Effective December 31, 1998, all tax forms, declarations, statements or other documents submitted to the Individual and Corporate Tax Division shall be completed using whole dollar amounts only. (2) Rounding to Nearest Whole Dollar Amount. Am…

(1) Individuals. The income tax return for an individual is due on April 15th following the close of the calendar year or the fifteenth day of the fourth month following the close of a fiscal year. Any balance due, as shown on the return when filed, after applicable credits for t…

(1) The Department is authorized to grant extensions for the payment of tax for a period not to exceed three months. Applications for extension should be made in writing in time for consideration by the Department before the date on which the payment is due. The application shoul…

(1) Public Law No. 861 of the United States known as the Soldiers' and Sailors' Civil Relief Acts provides that persons in the military service of the United States who can show their inability to pay income tax by reason of such service be granted deferment of income tax, withou…

(Repealed). Authors: Carmen Mills, Anne Simms, Fred H. Pritchard, John H. Burgess Notes Ala. Admin. Code r. 810-3-42-.04 Adopted September 30, 1982. Amended June 17, 1988; filed July 27, 1988. Repealed: Filed May 3, 2000; effective June 7, 2000. Statutory Authority: Code of Ala. …

(1) Purpose. This rule sets forth guidelines and procedures for claiming, applying, and transferring the rail credit provided under the Railroad Modernization Act of 2019, as codified in Chapter 11C of Title 37 of the Code of Ala. 1975. (2) Definitions. For purposes of this rule,…

(Repealed). Author: Ann Winborne. Notes Ala. Admin. Code r. 810-3-43-.02 Statutory Authority: Code of Ala. 1975, § 40-18-43. Histoy: Adopted September 30, 1982. Amended February 8, 1989; filed March 20, 1989. Filed July 22, 1992; October 30, 1992. Repealed filed October 4, 1993; …

(Repealed). Author: Ann Winborne. Notes Ala. Admin. Code r. 810-3-43-.03 Statutory Authority: Code of Ala. 1975, § 40-18-43. Histoy: Adopted June 17, 1988; filed July 27, 1988. Repealed filed October 4, 1993; effective November 8, 1993.

(1) (a) For transactions prior to January 1, 1985 - With three important exceptions, § 40-18-44 (as in effect before January 1, 1985) is with regard to the sale of real estate and the casual sale of personal property for a price exceeding $1,000, essentially the same as provision…

(1) (a) For disposition before January 1, 1985. If an installment obligation is satisfied for other than its face value, sold or exchanged, the realized gain is recognized at that time. (b) If an installment obligation is distributed, transmitted, or otherwise disposed of other t…

(Repealed). Author: Ann Winborne. Statutory Authority: Code of Ala. 1975, § 40-18-43. History: Adopted September 30, 1982. Amended filed May 15, 1992. Repealed filed October 4, 1993; effective November 8, 1993. Notes Ala. Admin. Code r. 810-3-45-.01

(Repealed). Authors: Ann Winborne. Statutory Authority: Code of Ala. 1975, § 40-18-43. History: Adopted September 30, 1982. Amended June 17, 1988; filed July 27, 1988. Repealed filed October 4, 1993; effective November 8, 1993. Notes Ala. Admin. Code r. 810-3-47-.01

(Repealed). Authors: Ann Winborne. Statutory Authority: Code of Ala. 1975,§ 40-18-43. History: Adopted September 30, 1982. Amended June 17, 1988; filed July 27, 1988. Repealed filed October 4, 1993; effective November 8, 1993. Notes Ala. Admin. Code r. 810-3-49-.01

(1) For tax years ending prior to January 1, 1982, the tax rates for individuals are: Rate TAXABLE INCOME 1.5% up to $1,000 3.0% over $1,000, but not more than $3,000 4.5% over $3,000, but not more than $5,000 5.0% over $5,000 (2) For tax years beginning after December 31, 1981, …

(Repealed). Author: Ann Winborne Notes Ala. Admin. Code r. 810-3-53-.01 Effective September 21, 1992. Repealed: Filed October 12, 2001; effective November 16, 2001. Statutory Authority: Code of Ala. 1975, § 40-18-53.

(1) For the purposes of Chapter 6 of these regulations, the following definitions apply: (a) Unadjusted basis in property - The original cost of the property if acquired after January 1, 1933. If the property was acquired prior to January 1, 1933 the unadjusted basis is the fair …

(1) The basis of property shall be the cost of the property with the following exceptions: (a) Inventory - If the property should have been included in the last inventory, the basis shall be the amount used in the last inventory. (b) Gifts or Transfer in Trust - See Rule 810-3-6-…

(1) For all taxable years with respect to which a preliminary assessment of income tax could be made under the provisions of § 40-2A-7, Code of Ala. 1975, as of May 27, 1997, and thereafter: (a) Basis of property to subchapter K entity - A subchapter K entity's basis in property …

(1) Property Acquired After December 31, 1997. The basis of property acquired by gift or by a transfer in trust shall be determined according to 26 U.S.C. § 1015. For interpretation of federal statutes adopted by the Alabama Legislature see Rule 810-3-1.1 -.01, Operating Rules. (…

(1) After December 31, 1997: The basis of property acquired from a decedent will be determined according to 26 U.S.C. § 1014. For interpretation of federal statutes adopted by the Alabama Legislature see Rule 810-3-1.1 -.01, Operating Rules. (2) Prior to January 1, 1998: Basis fo…

(1) After December 31, 1984: The basis of property acquired in a like-kind exchange shall be determined according to 26 U.S. C. § 1031. For interpretation of federal statutes adopted by the Alabama Legislature see Rule 810-3-1.1 -.01, Operating Rules. (2) Prior to January 1, 1985…

(1) For tax periods beginning after December 31, 1984: (a) the basis of property received by a distributee in a transaction described in subsection (e) or (f) of § 40-18-8, Code of Ala. 1975, shall be determined in accordance with 26 U.S.C. § 358. For interpretation of federal st…

(1) Basis of Property Acquired on Liquidation of Subsidiary. The basis of property acquired by a corporation as a result of a liquidation of a subsidiary to which § 40-18-8(h), Code of Ala. 1975, applies shall be determined in accordance with 26 U.S.C. § 334(b). For interpretatio…

If an election under 26 U.S.C. § 338 is in effect for federal income tax purposes, the basis of property owned by a corporation shall be determined under 26 U.S.C. § 338 relating to the treatment of certain stock purchases as asset acquisitions. For interpretation of federal stat…

If property is received in a distribution in complete liquidation in which a gain or loss is recognized on receipt of the property, the basis of the property received shall be determined in accordance with 26 U.S.C. § 334(a). For interpretation of federal statutes adopted by the …

The basis of stock with respect to which a corporation makes a distribution of its stock and the basis of the stock distributed shall be determined in accordance with 26 U.S.C. § 307. For interpretation of federal statutes adopted by the Alabama Legislature see Rule 810-3-1.1 -.0…

(1) After December 31, 1984. The basis of property acquired in connection with an involuntary conversion in which a gain or loss was not recognized shall be determined according to 26 U.S.C. § 1033. For interpretation of federal statutes adopted by the Alabama Legislature see Rul…

If property was acquired prior to January 1, 1933, the basis for determination of gain, loss, depreciation or depletion is the fair market value on January 1, 1933. Author: Ed Cutter, CPA Notes Ala. Admin. Code r. 810-3-6-.13 New Rule: Filed April 28, 1999; effective June 2, 1999…

(1) The basis of property received from a spouse or former spouse in a transaction in which a gain or loss was determined under § 40-18-8(m), Code of Ala. 1975, shall be determined in accordance with 26 U.S.C. § 1041. For interpretation of federal statutes adopted by the Alabama …

If securities are sold to an employee stock ownership plan or an eligible work-owned cooperative, and gain was not recognized pursuant to § 40-18-8(n), Code of Ala. 1975, the basis of the qualified replacement property, as defined by 26 U.S.C. § 1042, shall be determined in accor…

(1) Effective for tax years beginning after December 31, 1997, the basis of both real and personal property owned by an individual on the date Alabama domicile is established shall be the same basis as is used for federal income tax purposes on that date. (2) Example 1: Taxpayer …

Effective for tax years beginning after December 31, 1997, if property is acquired in an applicable asset acquisition as defined by 26 U.S.C. § 1060, the basis of the acquired property shall be determined in accordance with 26 U.S.C. § 1060. Federal regulations and determinations…

(1) Scope. This rule is issued pursuant to Section 16-6D-1, Code of Ala. 1975, to provide guidance to parents with students enrolled in or assigned to attend a failing school who may be eligible for a refundable income tax credit to offset the costs of transferring a student to a…

(1) Scope. This rule is issued pursuant to Section 16-6D-1, Code of Ala. 1975, to provide guidance to parents who choose to transfer a student to a nonpublic school upon notification that the student is enrolled in or assigned to attend a failing school. (2) In order to be eligib…

(1) Scope. This rule is issued pursuant to Section 16-6D-1, Code of Ala. 1975, to provide guidance to parents with students who transfer to a new school and are notified that the new school is a failing public school for purposes of the Alabama Accountability Act (Act 2013-64). T…

(1) Scope. This rule is issued pursuant to Section 16-6D-1, Code of Alabama 1975, to provide guidance to parents who are eligible to claim a refundable income tax credit under the Alabama Accountability Act of 2013. (2) For purposes of calculating the 80% of the average annual co…

(1) Scope: Act 2013-64, as amended by Acts 2013-265 and 2015-434, provides for income tax credits to individuals and corporations making scholarship donations to Scholarship Granting Organizations (SGOs.) This rule defines certain terms and phrases used in connection with the pro…

(1) Credits will be limited to scholarship donations which are bona fide gifts. (a) Donor Restrictions. The donor may not receive anything of value from the SGO in return for the gift or place any restrictions on the use of the donated funds. (b) A donation that is restricted or …

(1) Scope: Act 2013-64, as amended by Acts 2013-265 and 2015-434, provides for the creation of an SGO to receive scholarship donations for the purpose of making scholarship grants. This rule prescribes procedures for the inclusion of SGOs on the Department's list of organizations…

(1) Scope. The Alabama Accountability Act of 2013 provides for the granting of scholarships by SGOs under certain circumstances. This rule prescribes accountability requirements for making scholarship grants. (2) The SGO must maintain separate accounts for all scholarship donatio…

(1) Scope. Act 2013-64, as amended by Acts 2013-265 and 2015-434, provides for SGOs to report publicly certain information to the Department of Revenue in connection with its educational scholarship funded. This rule prescribes the required information and dates of submission. (a…

(1) Scope. Act 2013-64, as amended by Acts 2013-265 and 2015-434, imposes eligibility requirements on nonfailing public schools and nonpublic schools wishing to receive scholarship grants for eligible students. Further it limits eligibility for the parent tax credit pursuant to S…