Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-27 - INDIVIDUAL TAXPAYERS' RETURNS › Section 810-3-27-.05 - Requirements For The Alabama Electronic Individual Income Tax Return

Current through Register Vol. 42, No. 9, June 28, 2024
(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) 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 semantics such as what fields an element can
			 contain, which sub elements it can contain, and how many items can be present.
			 It can also describe the type and values that can be placed into each element
			 or attribute.
(b) XML instance
			 document - The actual return data defined by the XML Schema. This document is
			 validated against the XML schema to ensure the contents and structures are
			 correct.
(c) Business Rules - A
			 document that defines the criteria that needs to be met for an electronic
			 return to be accepted based on the filing instructions and system requirements
			 for a specific tax return.
(d)
			 Individual Income Tax - The tax levied by Sections
			 40-18-2,
Code of Ala. 1975
.
(e) Software Developer - An Authorized IRS
			 e-file Provider that develops software for the purposes of (a) formatting the
			 electronic portions of returns according to Publication 4164 or Department
			 specifications and/or(b) transmitting the electronic portion of returns
			 directly to the IRS. A Software Developer may also sell its software.
(f) Electronic Return Originator (ERO) - A
			 firm, organization, or individual who is an authorized IRS e-file provider that
			 originates the electronic submission of returns. Because the electronic filing
			 process is a joint program between the IRS and the Department, an ERO must be
			 approved by the Internal Revenue Service to qualify for this program.
(g) AL8453 - A document used to satisfy
			 signature requirements for electronically filed Individual Income Tax Returns
			 submitted to the State of Alabama by an Electronic Return Originator
			 (ERO).
(h) AL84530L - A document
			 used to satisfy signature requirements for electronically filed Individual
			 Income Tax Returns submitted to the State of Alabama by an Online
			 Filer.
(i) Accepted return - An
			 Alabama Individual Electronic Income Tax Return that has successfully completed
			 the schema and business rules validation process and the Department has sent an
			 acknowledgement with an Acceptance Status of "Accepted" for MeF (Modernized
			 e-File) returns.
(j) Rejected
			 Return - An Alabama Individual Electronic Income Tax Return that was received,
			 but failed to complete the schema and or business rule validation process and
			 the Department has sent an acknowledgement with an Acceptance Status of
			 "Rejected" for MeF returns.
(k)
			 Transmission Perfection Period - A ten (10) calendar day period from the date
			 of the first transmission of an Individual MeF (Modernized E-file) Income Tax
			 Return that a taxpayer has to correct and resubmit a rejected electronically
			 transmitted Individual MeF Income Tax Return that was originally timely filed.
(l) Electronic Postmark - A record
			 of the date and time (in a particular time zone) that an authorized electronic
			 return transmitter receives the transmission of a taxpayer's electronically
			 filed document on its host system. However, if the taxpayer and the electronic
			 return transmitter are located in different time zones, it is the taxpayer's
			 time zone that controls the timeliness of the electronically filed
			 document.
(m) Timely Filed Return -
			 An electronic return that is received and accepted by the due date or within
			 the six-month automatic extension period. It also includes a timely filed
			 rejected return that is resubmitted and accepted during the transmission
			 perfection period.
(n) Electronic
			 Return Transmitter - An authorized IRS e-file Provider that transmits the
			 electronic portion of a return directly to the IRS or the Department. An entity
			 that provides a "bump up" service is also a Transmitter. A bump up service
			 provider increases the transmission rate or line speed of formatted or
			 reformatted information that it is sending to the IRS.
(o) Standard Letter of Intent (LOI) - A form
			 which must be completed to request approval from the Department to provide tax
			 preparation software for electronic forms submissions. By completing this form,
			 the software developer agrees to comply with all national security summit
			 standards and requirements in addition to the specific Alabama requirements
			 included in the LOI.
(p) Acceptable
			 Individual Income Tax Return - Any original Individual tax return that is
			 authorized by the Department to be filed solely using electronic technology as
			 defined in Section
			 40-30-3(2),
Code of Ala. 1975
.
(q) Submission Error Rate - A Software
			 Developer's percentage of business rule rejections compared to the total amount
			 of returns submitted. This will be calculated by taking the total amount of
			 business rule rejections per form type for a particular form year divided by
			 the total amount of returns transmitted for that same form type with regards to
			 the form year in question.
(r)
			 Original Individual Income Tax Return - Any return that is required to be filed
			 with respect to the tax imposed as defined by Section
			 40-18-2,
Code of Ala. 1975
.
(s) Tax Preparation Software - Any computer
			 software program intended for accounting, tax preparation, and or tax
			 compliance.
(t) Electronic
			 Signature Pad - An electronic device with a touch sensitive LCD screen which
			 allows users to acquire and register a signature or any other physical
			 signature capture device that captures and converts a signature into an
			 electronic format.
(u) Suitability
			 - A check conducted on all software developers including rebranded and white
			 labeled products, when an application is initially processed and on a regular
			 basis thereafter. The suitability check may include background and personal tax
			 compliance checks conducted by the department to ensure the software developers
			 are eligible for participation in the Department's e-file program.
(v) Acceptance or Assurance Testing (ATS) -
			 Required testing for software developers that participate in the Department's
			 Individual e-file program. This testing is used to assess their software and
			 transmission capability with the department prior to live processing.