Alabama Administrative Code

(1) Scope: Act 2013-64, as amended by Acts 2013-265 and 2015-434, establishes certain requirements for the operation of Scholarship Granting Organizations (SGOs) and requires SGOs to report certain information to the Department of Revenue. The Acts also authorize the department t…

Notes Ala. Admin. Code r. 810-3-61-.08 Amended by Alabama Administrative Monthly Volume XXXII, Issue No. 10, July 31, 2014, eff. 8/4/2014. Repealed by Alabama Administrative Monthly Volume XXXIV, Issue No. 03, December 31, 2015, eff. 1/4/2016. Author: Curtis Stewart Statutory Aut…

(1) Definitions. The following terms have the meanings ascribed to them for purposes of this rule: (a) Estimated Tax - The Estimated Income Tax payments required pursuant to §§ 40-18-80 and 40-18-80.1, Code of Ala. 1975. (b) Estimated Tax Penalty - The amounts to be added to the …

(Repealed). Author: Income Tax Division Notes Ala. Admin. Code r. 810-3-7-.01 Amended: June 17, 1988; filed July 27, 1988. Amended: Filed September 18, 1996; effective October 23, 1996. Repealed: Filed April 28, 1999; effective June 2, 1999. Statutory Authority: Code of Ala. 1975…

(1) (a) The terms "employer," "employee," and, generally, "wages" have the same meaning as defined in the Internal Revenue Code, as amended from time to time. (b) Section 40-18-90, Code of Ala. 1975, provides additional definitions in connection with the requirement for withholdi…

(1) Every employer or withholding tax agent required to withhold income tax or who voluntarily withholds income tax is required to maintain withholding tax records for a period of three years from the due date of the return or three years from the date the return is filed with th…

(1) Subsequent to August 1, 2007, and pursuant to Act 2007-199, there is created a provisional construction employer, as defined in Section 40-18-70, Code of Ala. 1975, and the below regulations. A provisional construction employer is any employer (including members of its affili…

(1) Each calendar quarter every withholding agent shall deduct, withhold, and pay over to the Department of Revenue on or before the last day of the month following the close of each quarterly period a tax, computed as indicated in Rule 810-3-71-.02 on the compensation paid withi…

(1) Employers may elect to compute the amount of Alabama income tax to be withheld from the wages of employees in one of two ways. (a) The withholding tax may be computed using the withholding tax tables, which are available on the Department's website. The tables show amounts to…

Notes Ala. Admin. Code r. 810-3-71-.03 New Rule: Filed August 26, 1994; effective September 30, 1994. Repealed by Alabama Administrative Monthly Volume XLII, Issue No. 11, August 30, 2024, eff. 10/14/2024. Author: Ewell Berry, Ann F. Winborne, and Neal Hearn Statutory Authority: …

Notes Ala. Admin. Code r. 810-3-71-.04 New Rule: Filed August 26, 1994; effective September 30, 1994. Amended: Filed May 3, 2000; effective June 7, 2000. Repealed by Alabama Administrative Monthly Volume XLIII, Issue No. 01, October 31, 2024, eff. 12/15/2024. Author: Ewell Berry,…

(1) Class exemptions from Alabama withholding are the same as those under federal law. The chief classes of employees exempt from withholding are agricultural, domestic and merchant seamen. Alabama will not follow the federal requirement to withhold income tax on cash payments ma…

(1) Definitions The following terms have these meanings for the purposes of the rule:(a) Hourly wage paid employee - An hourly employee that is paid a wage for each hour of work they complete (b) Week - A workweek as defined by U.S. Fair Labor Standards Act (FLSA). An employee's …

(1) For periods beginning on October 1, 2024, and ending June 30, 2025, gross income does not include amounts paid as overtime in accordance with the U.S. Fair Labor Standards Act. (2) For employers governed by the National Railway Labor Act, the exemption applies to hourly compo…

(1) Every employee is required to furnish his or her employer an Alabama withholding tax exemption certificate Form A4 at the time of employment showing the number of exemptions claimed. The number of exemptions claimed may not exceed the number of exemptions to which the employe…

(1) Every employer required to deduct and withhold tax from the wages of employees under § 40-18-71, Code of Ala. 1975, and those persons required to withhold income tax on proceeds of a wager pursuant to § 40-18-91 and payers who have elected to voluntarily withhold income tax, …

Author: Notes Ala. Admin. Code r. 810-3-74-.02 Filed September 28, 1982. Repealed: Filed December 8, 1987. Statutory Authority:

(1) (a) Each employer, on or before January 31 of each year or within thirty days after termination of the employment, shall furnish each employee a withholding statement (Form W-2) for the preceding year, in duplicate, showing: 1. The total wages paid, 2. The amount of Alabama i…

On written application by the taxpayer, extensions of up to thirty days may be granted with respect to required reports under Section 40-18-75, Code of Ala. 1975. Requests for extension should state the reason the extension is needed, and should be mailed in time to receive consi…

(1) On or before the last day of January each year, every withholding tax agent who has paid Alabama wages of $1,500 or more or has withheld Alabama income tax, must file with the Department of Revenue the wage and tax information as described in Rule 810-3-75-.01 for the previou…

(1) Alabama income tax is not required to be withheld from retirement distributions, pensions, interest payments or other payments which are not wage payments. However, voluntary withholding of Alabama income tax from such payments is permissible. If the election to voluntarily w…

(1) Third-party payers are generally insurance companies who have made a wage payment (i.e., sick pay) to an employee on behalf of the employer. The third-party payer remits the tax withheld under the third-party payer's withholding tax account number. (2) If the third-party paye…

(1) Any person required under § 40-18-71, Code of Ala. 1975, and/or § 40-18-91 to withhold, account for, and pay over income tax shall be liable for the tax required to be withheld. (a) "Person" as used herein includes an officer of a corporation or a member of a partnership or o…

(1) If an employer withholds from an employee's wages an amount of tax which exceeds the amount required to be withheld pursuant to § 40-18-71, Code of Ala. 1975, and remits the amount withheld to the Department, no refund will be made to the employer. The employee should claim c…

(1) An employee or other payee from whose wages or other remuneration income tax is withheld, and/or a recipient of proceeds from a wager from which income tax was withheld pursuant to § 40-18-91, Code of Ala. 1975, is allowed a credit for the amount withheld on his or her income…

(1) (a) If the income tax return of a taxpayer shows an overpayment of tax because of withholding from his wages and/or payments of declarations of estimated tax, the overpayment will first be applied against any income tax of earlier years owed by the taxpayer. The balance, at t…

(1) For transactions closed before January 1, 1985, gain or loss shall be recognized in accordance with the following rules: (a) The Federal Internal Revenue Code contains provisions similar to those in § 40-18-8, Code of Ala. 1975. Decisions and interpretations of the federal co…

(1) If an exchange of property occurring after December 31, 1984, satisfies the requirements of 26 U.S.C. § 1031, relating to like-kind exchanges, then the amount of gain or loss recognized in the exchange shall be determined in accordance with 26 U.S.C. § 1031. For interpretatio…

Federal regulations and decisions of federal courts and agencies regarding the exchange of stock for stock of the same corporation will generally be followed in the interpretation of this rule. See also Rule 810-3-1.1 -.01, Operating Rules for, Interpretation of federal statutes …

(1) For transactions after December 31, 1984, federal interpretations pertaining to 26 U.S.C. §§ 354, 355, 356, 361, 371 and 374 will be followed in determining the amount of gain or loss recognized as the result of a reorganization specified in 26 U.S.C. § 368 or a distribution …

(1) For transactions after December 31, 1984. (a) If property is transferred to a corporation in a transaction which satisfies the requirements of 26 U.S.C. § 351, relating to transfers to corporations controlled by the transferor, the amount of gain or loss shall be determined i…

For transactions occurring after December 31, 1984, if a taxpayer makes a valid election under 26 U.S.C. § 1033 (relating to involuntary conversions) for federal income tax purposes, the amount of gain recognized for Alabama income tax purposes shall be determined according to 26…

(Repealed 6/2/99) Authors: Royce Lader, Ann F. Winborne, CPA Notes Ala. Admin. Code r. 810-3-8-.07 Amended: Filed July 27, 1988; May 15, 1992. Amended: Filed September 18, 1996; effective October 23, 1996. Repealed: Filed April 28, 1999; effective June 2, 1999. Statutory Authorit…

For transactions occurring after December 31, 1984, no gain or loss will be recognized by a corporation on the receipt of money or other property in exchange for the stock of the corporation, including treasury stock or with respect to the acquisition or lapse of an option to buy…

(1) For transactions occurring after December 31, 1984, no gain or loss shall be recognized on the receipt by a corporation of property distributed in complete liquidation of another corporation as described in 26 U.S.C. § 332. For interpretation of federal statutes adopted by th…

(1) For transactions after December 31, 1984 and before August 1, 1986 - (a) If, within the twelve (12) month period beginning on the date on which a corporation adopts a plan of complete liquidation, all of the assets of the corporation are distributed in complete liquidation, (…

(1) For transactions occurring after July 31, 1986 - the election to recognize gain on certain liquidations pertaining to 26 U.S.C. § 333 has been repealed under the provisions of Act 90-583 and Public Law 99-514. (2) For transactions after December 31, 1984, and before August 1,…

Reserved Notes Ala. Admin. Code r. 810-3-8-.12

Notes Ala. Admin. Code r. 810-3-8-.13 Filed July 27, 1988; July 22, 1992; October 30, 1992. Amended: Filed March 4, 1997; effective April 8, 1997. Amended: Filed April 28, 1999; effective June 2, 1999. Repealed by Alabama Administrative Monthly Volume XXXVI, Issue No. 01, October…

Notes Ala. Admin. Code r. 810-3-8-.14 Filed July 27, 1988; July 22, 1992; October 30, 1992. Amended: Filed March 4, 1997; effective April 8, 1997. Repealed and New Rule: Filed April 28, 1999; effective June 2, 1999. Repealed by Alabama Administrative Monthly Volume XXXVI, Issue N…

(Repealed 1/18/00) Authors: Verlon R. Frost, Jeff Taylor Notes Ala. Admin. Code r. 810-3-8-.15 Filed July 27, 1988; July 22, 1992; October 30, 1992. Amended: Filed March 4, 1997, effective April 8, 1997. Amended: Filed April 28, 1999; effective June 2, 1999. Repealed: Filed Decem…

Notes Ala. Admin. Code r. 810-3-8-.16 Filed July 22, 1992; October 30, 1992. Amended: Filed March 4, 1997; effective April 8, 1997. Amended: Filed April 28, 1999; effective June 2, 1999. Repealed by Alabama Administrative Monthly Volume XXXVI, Issue No. 01, October 31, 2017, eff.…

(Repealed 6/2/99) Authors: Verlon R. Frost, Jeff Taylor Notes Ala. Admin. Code r. 810-3-8-.17 Filed July 27, 1988; July 22, 1992; October 30, 1992. Amended: Filed March 4, 1997; effective April 8, 1997. Repealed: Filed April 28, 1999; effective June 2, 1999. Statutory Authority: …

The amount of gain or loss on the transfer of property to a spouse or former spouse shall be determined in accordance with 26 U.S.C. § 1041. For interpretation of federal statutes adopted by the Alabama Legislature see Rule 180-3-1.1-.01, Operating Rules. Authors: Brenda J. Finch…

(1) The amount of gain recognized by a taxpayer who has made a valid election under 26 U.S.C. § 1042, relating to sales of stock to employee stock ownership plans or certain cooperatives, shall be determined in accordance with 26 U.S.C. § 1042. (2) If a taxpayer disposes of quali…

(1) For all taxable years with respect to which a preliminary assessment of income tax could be made under the provisions of Section 40-2A-7, Code of Alabama 1975, as of May 27, 1997, or thereafter: (a) Contribution of property to a subchapter K entity - The amount of gain or los…

Notes Ala. Admin. Code r. 810-3-80-.01 Repealed by Alabama Administrative Monthly Volume XXXV, Issue No. 05, February 28, 2017, eff. 3/11/2017. Author: Ewell Berry Statutory Authority: Code of Ala. 1975, §§ 40-2A-7(a)(5), 40-18-80, 40-29-70, 40-29-72, 40-29-73.

(Repealed 6/7/00) Authors: Ecta Spicer, Ewell Berry, John H. Burgess Statutory Authority: Code of Ala. 1975, §§ 40-2A-7(a)(5), 40-18-80, Act 88-952. History: Adopted September 30, 1982. Amended June 17, 1988; amended February 8, 1989, filed March 20, 1989. Repealed: Filed May 3, …

Notes Ala. Admin. Code r. 810-3-81-.01 Adopted September 30, 1982. Amended June 17, 1988; filed July 27, 1988. Repealed: Filed January 25, 2019; effective March 11,2019. Authors : Ewell Berry, Ann Fondren, John H. Burgess Statutory Authority : Code of Ala. 1975, § 40-18-81.

Notes Ala. Admin. Code r. 810-3-82-.01 Adopted September 30, 1982. Amended filed July 27, 1988; May 15, 1992.Repealed by Alabama Administrative Monthly Volume XXXII, Issue No. 12, September 30, 2014, eff. August 27, 2014. Statutory Authority: Code of Ala. 1975, § 40-18-82.