(a) For purposes of this article, the term “post-termination transition period” means: (1) The period beginning on the day after the last day of the corporation’s last taxable year as an Alabama S corporation and ending on the later of: a. The day which is one year after the last day. b. The due date for filing the return for the last year as an Alabama S corporation, including extensions. (2) The 120-day period beginning on the date of a determination pursuant to an audit of the taxpayer which follows the termination of the corporation’s election to be treated as a federal S corporation and which adjusts a subchapter S item of income, loss, or deduction of the corporation arising during the S period. (3) The 120-day period beginning on the date of a determination that the corporation’s election under 26 U.S.C. § 1362 had terminated for a previous taxable year.
(b) For purposes of subsection (a), the term “determination” means: (1) A determination as defined in 26 U.S.C. § 1313(a); or
(2) An agreement between the corporation and the U.S. Secretary of the Treasury that the corporation failed to qualify as an S corporation.
History: (Code 1975, §40-14-102; Acts 1984, 1st Ex. Sess., No. 84-756, p. 121, §13; Acts 1997, No. 97- 625, p. 1048, §3.)