reglab/statecodes huggingface dataset:
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-21 - CREDIT FOR TAXES PAID ON INCOME FROM SOURCES OUTSIDE THE STATE › Section 810-3-21-.03 - Maximum Credit For Tax Paid Other Jurisdictions

Current through Register Vol. 42, No. 9, June 28, 2024
(1) The credit for tax paid or incurred to
			 other jurisdictions shall not be used to offset that portion of a taxpayer's
			 income tax liability which is attributable to Alabama sources. The credit for
			 tax paid or incurred to other jurisdictions shall only be utilized against that
			 portion of the taxpayer's income tax liability which is attributable to income
			 from other jurisdictions.
(2) As a
			 general rule, that portion of a taxpayer's income tax liability which is
			 attributable to non-Alabama sources shall be determined by multiplying the
			 taxpayer's Alabama income tax liability before consideration of any credit
			 described in
Code of Ala. 1975
, §
								40-18-21 by a fraction, the numerator of which is total non-Alabama source adjusted
			 gross income and the denominator of which is total Alabama adjusted gross
			 income.
(a) Example. Taxpayer reports
			 $120,000 of adjusted gross income on his Alabama income tax return, of which
			 $80,000 is attributable to another jurisdiction; his Alabama income tax
			 liability before credits is $4,000. Taxpayer paid the other jurisdiction $4,000
			 of income tax on the $80,000 of income from the other jurisdiction.
Because one-third ($1,333) of Taxpayer's liability is
				attributable to Alabama sources, it is not subject to the credit for tax paid
				to other jurisdictions. The maximum credit that Taxpayer may utilize is $2,667,
				which is the portion of his liability attributable to other
				jurisdictions.
(b) Example.
			 Taxpayer reports $120,000 of adjusted gross income on his Alabama income tax
			 return, of which $80,000 is from non-Alabama sources. Of this $80,000
			 non-Alabama source income, $40,000 is attributable to State A and $40,000 is
			 attributable to State B. Taxpayer's Alabama income tax liability before credit
			 is $4,000. Taxpayer paid State A $2,000 of income tax on the $40,000 of income
			 from State A; Taxpayer paid State B no income tax on the $40,000 of income from
			 State B.
Because one-third ($1,333) of Taxpayer's liability is
				attributable to Alabama sources, it is not subject to the credit for tax paid
				to other jurisdictions; Taxpayer's remaining income tax liability of $2,667 is
				creditable. However, because the total of income tax paid by Taxpayer to both
				States A and B ($2,000) is less than the creditable portion of Taxpayer's
				income tax liability ($2,667), the maximum credit for tax paid to other
				jurisdictions does not limit Taxpayer's use of the credit.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-21 - CREDIT FOR TAXES PAID ON INCOME FROM SOURCES OUTSIDE THE STATE › Section 810-3-21-.04 - Rebated Allowed For Qualified Production Companies

Current through Register Vol. 42, No. 9, June 28, 2024
Purpose. This rule sets forth guidelines and procedures to be
				used by the department in the administration of rebates allowed for qualified
				production companies.
(1) Definitions.
			 For purposes of this rule, the term "Notice of Rebate Available" means the
			 written notice from the Alabama Film Office certifying the amount of rebate
			 determined to be available to a qualified production company. All other terms
			 used in this rule have the same meaning provided in Alabama Film Office Rule
			 281-3-1-.02.
(2) A qualified production company that
			 satisfies the provisions of Article 3, Chapter 7A of Title 41 of the
Code of Ala. 1975
, and produces a state-certified
			 production is entitled to claim a rebate, in an amount not to exceed the amount
			 set forth in the Notice of Rebate Available on its Alabama Income Tax Return
			 for the tax year during which production activities in Alabama on the
			 state-certified production were completed.
(3) The rebate may be used to offset the
			 Alabama Income Tax liability of the qualified production company for the tax
			 year during which production activities in Alabama on the state-certified
			 production were completed. The amount by which the rebate exceeds the qualified
			 production company's Alabama Income Tax liability shall be refunded to the
			 qualified production company. If production activities in Alabama on the
			 state-certified production took place in more than one tax year, the qualified
			 production company must be current in its income tax filings for all tax years
			 during which production activities on the state-certified production took place
			 in Alabama before a rebate can be claimed.
(4) The qualified production company's tax
			 year must be closed before it can file its Alabama income tax return claiming
			 the rebate.-
(5) The Alabama Film
			 Rebate must be pre-certified through the department's online portal before the
			 taxpayer can claim the rebate on the qualified production company's Alabama
			 income tax return. The qualified production company must upload the following
			 items in their credit claim package:
(a)
			 Approval letter (first letter) from the Alabama Film Office.
(b) Notice of Rebate Available (second
			 letter) from the Alabama Film Office.
(c) The Certificate of Compliance from the
			 department.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-24 - TAXATION OF PARTNERSHIPS › Section 810-3-24-.01 - Taxability Of Partnership Income

Current through Register Vol. 42, No. 9, June 28, 2024
(1)
(a) A
			 partnership is considered to be a "conduit" of income to each partner and not a
			 taxable entity under Alabama income tax law.
(b) The term "partnership" includes a limited
			 partnership, a general partnership, and a syndicate, group, pool, or joint
			 venture which is not a corporation, estate, trust or sole proprietorship within
			 the meaning of the Alabama income tax law.
(c) The term "partner" means any person who
			 is a member of a partnership.
(d)
			 The term "person" as used in this rule includes an individual, corporation,
			 fiduciary or another partnership.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-24 - TAXATION OF PARTNERSHIPS › Section 810-3-24-.02 - Computation Of Partnership Income (Or Loss)

Current through Register Vol. 42, No. 9, June 28, 2024
(1) The net income of a partnership is
			 computed in the same manner as that of an individual, except:
(a) no deduction is allowed for a personal
			 exemption or credit for dependents as provided in §
									40-18-19,
			 and
(b) no deduction is allowed for
			 charitable contributions or gift made in accordance with §
									40-18-15(a)(10),
			 and
(c) no deduction is allowed for
			 a net operating loss carryback or carryforward as provided in §
									40-18-15(a)(16),
			 and
(d) no deduction is allowed for
			 the additional itemized deductions provided for individuals in §
									40-18-15,
			 and
(e) no deduction is allowed for
			 the optional standard deduction provided in §
									40-18-15(b).
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-24 - TAXATION OF PARTNERSHIPS › Section 810-3-24-.03 - Partner's Distributive Share Of Partnership Income (Or Loss)

Current through Register Vol. 42, No. 9, June 28, 2024
(1) A partner's
			 distributive share of partnership income, gains, losses and deductions shall be
			 determined in accordance with the partner's interest in the partnership (taking
			 into account all facts and circumstances) unless -
(a) the partnership agreement provides
			 otherwise, and
(b) the allocation
			 to a partner in accordance with the partnership agreement is not substantially
			 for the purpose of avoiding or evading taxation under this
			 regulation.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-24 - TAXATION OF PARTNERSHIPS › Section 810-3-24-.04 - Transactions Between Partner And Partnership

Current through Register Vol. 42, No. 9, June 28, 2024
(1) A partner who engages in a transaction
			 with a partnership other than in his capacity as a partner shall be treated as
			 if he were not a member of the partnership with respect to such transaction. In
			 all cases the substance of the transaction will govern and not its form. The
			 relationship between a partner not acting in his capacity as a partner and the
			 partnership may include, but is not limited to that of creditor-debtor,
			 vendor-vendee and employee-employer.
(2) To the extent determined without regard
			 to the income of the partnership, payments to a partner for services or for the
			 use of capital shall be considered as made to one who is not a member of the
			 partnership. Such guaranteed payments to partners shall be treated as a
			 deductible business expense in the computation of the partnership net
			 income.
(3)
(a) Gain or loss will be recognized by a
			 partner on a contribution of property to a partnership in exchange for an
			 interest in the partnership to the extent provided in §
									40-18-8.
(b)
1. Gain
			 or loss will be recognized by a partnership on a distribution of property to a
			 partner to the extent provided in §
										40-18-8.
2. Gain or loss will be recognized by a
			 partner on a distribution of property from a partnership to the extent provided
			 in §
										40-18-8.
Authors:
Ecta Spicer, Roy Wiggins, and John H.
				Burgess.
Statutroy Authority:
Code of Ala.
				1975
, §
											40-18-24.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-24 - TAXATION OF PARTNERSHIPS › Section 810-3-24-.05 - Partner's Basis In Partnership Interest

Current through Register Vol. 42, No. 9, June 28, 2024
(1) A partnership interest is personal
			 property hold for the production of income. A gain or loss from the sale or
			 other disposition of a partnership interest must be recognized to the extent
			 provided in §
								40-18-8.
(2) The adjusted basis of a partner's
			 interest in a partnership shall be the amount of property, including money,
			 contributed to the partnership:
(a) increased
			 by the sum of his distributive share (not including any "Guaranteed Payments to
			 Partners") for the taxable year and prior taxable years of:
1. the taxable income of the
			 partnership,
2. the income of the
			 partnership exempt from tax, and
3.
			 the excess of the deductions for depletion over the basis of the property
			 subject to depletion,
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-24.1 - COMPOSITE RETURN AND PAYMENT BY NONRESIDENT OWNER OF SUBCHAPTER K ENTITY › Section 810-3-24.1-.01 - Composite Returns Of Subchapter K Entities (REPEALED)

Current through Register Vol. 42, No. 9, June 28, 2024
Authors:
Dennice Hillard, Nancy Butler; Ann F.
				  Winborne, CPA; Ed Cutter, CPA; Richard H. Henninger; Michael E. Mason,
				  CPA
Statutory Authority:
Code of Ala. 1975,
				  §§
										40-2A-7(a)(5),
				  40-18-24.1.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-24.2 - PASS-THROUGH ENTITY COMPOSITE RETURNS AND QUALIFIED INVESTMENT PARTNERSHIP (QIP) REQUIREMENTS › Section 810-3-24.2-.01 - Composite Returns Of Pass-Through Entities

Current through Register Vol. 42, No. 9, June 28, 2024
(1)
Definitions
. The
			 following terms shall have the following meanings for purpose of these rules.
(a)
Subchapter K
			 Entity
. An entity meeting the definition contained in Section
			 40-18-1,
Code of Ala. 1975
, which does not include a
			 single member limited liability company.
(b)
Composite
			 Return
. A return on a form prescribed by the Department which
			 contains information concerning the distributive share of income for each of
			 the nonresident members and which reports the amount of composite payment made
			 on behalf of each nonresident member.
(c)
Composite
			 Payment
. A payment of Alabama income tax made by the pass-through
			 entity on behalf of its nonresident members; calculated on the nonresident
			 member's distributive share of the pass-through entity's income, computed in
			 accordance with Section 40-18-24,
Code of Ala. 1975
,
			 and paid in the manner prescribed by the Department.
(d)
Pass-through
			 Entity
. A partnership or other entity classified as a Subchapter K
			 entity under Section 40-18-1,
Code of Ala. 1975
.
			 Neither estates nor trusts, including business trusts, are included in this
			 definition or are subject to Section 40-18-24.2,
Code of Ala.
			 1975
, except in their capacity as a nonresident member of a
			 pass-through entity or lower-tier pass-through entity.
(e)
Affordable Rental Housing
			 Development
. A housing development operated in the form of a
			 Subchapter K entity which has rents restricted pursuant to a federal, state or
			 local government agency requirement, and includes without limitation one or
			 more commonly-managed residential units, generally treated by the owner as
			 comprising a single development, subject to a declaration of land use
			 restrictive covenants or similar recorded written agreement, enforceable
			 against the owner of such development or the property within the development by
			 an agency or instrumentality of the United States, the State of Alabama, or a
			 political subdivision of the State of Alabama, which restricts the rental rates
			 of at least 20% of the residential units in such development or imposes income
			 limits on a portion of the residents.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-25 - ESTATES AND TRUSTS › Section 810-3-25-.01 - Taxable Income Of Estates And Trusts, For Taxable Years Beginning Prior To January 1, 2005

Current through Register Vol. 42, No. 9, June 28, 2024
(1) The tax
			 imposed by Chapter 18, Title 40,
Code of Ala. 1975
,
			 shall apply to the income of estates or of any kind of property held in trust,
			 including:
(a) Income received by estates of
			 deceased persons during the period of administration or settlement of the
			 estate;
(b) Income accumulated in
			 trust for the benefit of unborn or unascertained persons or persons with
			 contingent interests;
(c) Income
			 accumulated or held for future distribution under the terms of the will or
			 trust; and,
(d) Income which is to
			 be distributed to the beneficiaries, and income collected by a guardian of an
			 infant which is to be held or distributed as the court may direct.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-25 - ESTATES AND TRUSTS › Section 810-3-25-.02 - Estate And Trust Charitable Contributions

Current through Register Vol. 42, No. 9, June 28, 2024
(Repealed 5/5/00)
Authors:
Roy Wiggins, John H.
				Burgess
Statutory Authority:
Code of Ala.
				  1975
, §
										40-18-25.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-25 - ESTATES AND TRUSTS › Section 810-3-25-.03 - Estate And Trust Taxable Income

Current through Register Vol. 42, No. 9, June 28, 2024
(Repealed 5/5/00)
Authors:
Roy Wiggins, John H.
				Burgess
Statutory Authority:
Code of Ala.
				  1975
, §
										40-18-25.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-25 - ESTATES AND TRUSTS › Section 810-3-25-.04 - Estates And Trusts Tax Computation, For Taxable Years Beginning Prior To January 1, 2005

Current through Register Vol. 42, No. 9, June 28, 2024
(1) Estates and
			 trusts are taxed at the same rate as a single individual - see §
								40-18-5(1),
Code of Ala. 1975
. Those rates are two percent of the
			 first $500.00 of taxable income, four percent of the taxable income in excess
			 of $500.00 and not in excess of $3,000.00, and five percent of taxable income
			 in excess of $3,000.00.
(2) A
			 resident estate or trust that has gross income taxable in Alabama and another
			 state will be allowed a credit for net income taxes paid the other state on
			 such income as provided in §
								40-18-21.
			 See Rule
			 810-3-21-.01.
(3) The Subchapter J and Business Trust
			 Conformity Act, Act 2006-114, was passed by the Alabama Legislature effective
			 for taxable years beginning after December 31, 2004 -please refer to the
			 regulations promulgated to implement the new act.
Authors:
Ron Bedsole, Ed Cutter, CPA
Statutory Authority:
Code of Ala.
				  1975
, §§
										40-2A-7(a)(5),
				  40-18-25.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-25 - ESTATES AND TRUSTS › Section 810-3-25-.05 - Estates And Trusts Beneficiary Taxable Income, For Taxable Years Beginning Prior To January 1, 2005

Current through Register Vol. 42, No. 9, June 28, 2024
(1)
(a) Each beneficiary of a trust or estate
			 shall include in gross income the distributive share, whether distributed or
			 not, of the net income of the trust or estate; except that portion of the
			 estate or trust net, or taxable, income which was taxed as provided in Rule
			 810-3-25-.01.
			 Income which would be exempt if received directly by the beneficiary shall be
			 exempt if received through a fiduciary.
(b) Each nonresident beneficiary of an estate
			 or trust shall include in Alabama gross income the distributive share, whether
			 distributed or not, of the net income of the trust or estate which is
			 attributable to Alabama sources; except that portion of such trust or estate
			 income which was taxed as provided in Rule
			 810-3-25-.01.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-25 - ESTATES AND TRUSTS › Section 810-3-25-.07 - Estates And Trusts, Miscellaneous Information

Current through Register Vol. 42, No. 9, June 28, 2024
(1) Estates and trusts are required to file
			 Alabama Form 41, Fiduciary Income Tax Return, on the date the taxpayer's
			 federal return is due or would be due if the federal return was required.
(a) The entity will be granted an extension
			 of time for filing the fiduciary return in the same manner as allowed by
			 federal law.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-25 - ESTATES AND TRUSTS › Section 810-3-25-.08 - Trusts And Estates Net Operating Loss, For Taxable Years Beginning Prior To January 1, 2005. (REPEALED)

Current through Register Vol. 42, No. 9, June 28, 2024
Authors:
Ron Bedsole, Ed Cutter, CPA
Statutory Authority
:
Code of Ala.
				  1975
, §§§
										40-2A-7,
				  40-18-25.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-25 - ESTATES AND TRUSTS › Section 810-3-25-.09 - Reporting Of Roth IRA Conversions For Part-Year Residents

Current through Register Vol. 42, No. 9, June 28, 2024
(1) Taxpayers are
			 allowed to convert an IRA to a Roth IRA in accordance with  26 U.S.C. §
									408A. Any amount required to be included in gross income as a result of
			 the conversion will be ratably included in gross income over a 4-taxable year
			 period beginning with the taxable year in which the conversion is
			 made.
(2) Part-year residents,
			 reporting in years 1998, 1999, 2000 and 2001, will use the original date of
			 rollover to determine whether the allocated amount will be included as Alabama
			 income.
(a) If an individual becomes an
			 Alabama resident on or before the date of rollover or the anniversary date of
			 the rollover, the allocation for that year will be taxable to
			 Alabama.
(b) If an individual
			 ceases to be an Alabama resident after the date of rollover or the anniversary
			 date of the rollover, the allocation for that year will be taxable to Alabama.
Authors:
Nancy Butler, Ronnie Bedsole, Ed Cutter,
				CPA Individual and Corporate Tax Division
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-25 - ESTATES AND TRUSTS › Section 810-3-25-.11 - Computation Of Alabama Taxable Income For Beneficiaries And Owners For Taxable Years Beginning After December 31, 2004

Current through Register Vol. 42, No. 9, June 28, 2024
(1) For tax years beginning after December
			 31, 2004, the computation of Alabama taxable income for a beneficiary of an
			 estate or trust and for persons treated as owners of any portion of a trust
			 shall be determined in accordance with Subchapter J of Chapter 1 of Subtitle A
			 of the Internal Revenue Code,  26 U.S.C. §§
									641 through  692, relating
			 to estates, trusts, beneficiaries, and decedents, with certain exceptions - as
			 specified below:
(a) Resident beneficiaries
			 and owners must report as Alabama income the beneficiary or owner's share of
			 the amount paid or deemed to have been paid by the estate or trust to the
			 beneficiary or owner and claimed as an income distribution deduction, in
			 accordance with  26 U.S.C. §§
										651 or  661, by the estate or trust in the
			 computation of its own Alabama taxable income.
1. Nonresident beneficiaries and owners must
			 report as Alabama income the beneficiary or owner's share of the amount paid or
			 deemed to have been paid by the estate or trust to the beneficiary or owner and
			 claimed as an income distribution deduction, in accordance with  26 U.S.C. §§
											651 or  661, by the estate or trust in the computation of its own
			 Alabama taxable income. The income reported by nonresident beneficiaries and
			 owners is limited in accordance with §
										40-18-14,
Code of Ala. 1975
, and the deductions allowed in
			 computing Alabama taxable income are limited in accordance with §
										40-18-15,
Code of Ala. 1975
.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-25 - ESTATES AND TRUSTS › Section 810-3-25-.12 - Computation Of Alabama Distributable Net Income (DNI) For Tax Years Beginning After December 31, 2004

Current through Register Vol. 42, No. 9, June 28, 2024
(1) For tax years beginning after December
			 31, 2004, the computation of Alabama Distributable Net Income (DNI) shall be
			 determined in accordance with  26 U.S.C. §
									643(a); in accordance with §
								40-18-1.1,
Code of Ala. 1975
, concerning the adoption of federal
			 Internal Revenue Code sections in Alabama income tax law; and, in accordance
			 with Title 40, Chapter 18,
Code of Ala. 1975, Income
			 Taxes
.
(2)
Purpose of Alabama DNI
. Alabama DNI serves the same
			 purpose as the federal DNI.
(a) Alabama DNI,
			 adjusted for items not included in the gross income of the estate or trust in
			 accordance with  26 U.S.C. §§
										651 and  661, limits the amount of
			 deduction an estate or trust may claim for distributions to
			 beneficiaries.
(b) Alabama DNI may
			 also limit the amount of Alabama income a beneficiary or trust owner must
			 report.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-25 - ESTATES AND TRUSTS › Section 810-3-25-.13 - Applicablity Of The Subchapter J And Business Trust Conformity Act To Business Trusts

Current through Register Vol. 42, No. 9, June 28, 2024
(1) For
			 tax years beginning after December 31, 2004, the classification of a business
			 trust for the purposes of determining the Alabama income tax due shall be in
			 the same manner as the business trust is classified for federal income tax
			 purposes.
(2) Generally, the
			 Internal Revenue Code classifies a business trust or a commercial trust as a
			 corporation or a partnership, even if the organization is technically cast in
			 the trust form - see U.S. Treasury Department Regulation
			 §301.7701-4.
Authors:
Voncile Catledge, Joe Garrett, Ed
				  Cutter, CPA
Authority:
Code of Ala.
				  1975
, §
										40-2A-7(a)(5).
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-25 - ESTATES AND TRUSTS › Section 810-3-25-.14 - Alabama Grantor Trust Reporting Requirements

Current through Register Vol. 42, No. 9, June 28, 2024
(1) For tax years beginning after December
			 31, 2004, grantor trusts, as described in  26 U.S.C. §
									671, have an Alabama
			 return filing requirement specified by §§
								40-18-25(g) and
			 40-18-29,
Code of Ala. 1975
.
(2) Grantor trusts, as described in  26 U.S.C. §
									671, required to comply with U.S. Treasury Department Regulation
			 §1.671-4(a) must file returns as prescribed by the Alabama Department of
			 Revenue in accordance with §
								40-18-29,
Code of Ala. 1975
.
(a) The information return for a grantor
			 trust will require: the sources and amounts of income for the trust; the types
			 and amounts of deductions for the trust; an identification of the beneficiaries
			 or owners with the applicable social security numbers or federal employer
			 identification numbers; the amount of income reportable on the federal income
			 tax return for the same tax year for each beneficiary or owner; and, the amount
			 of deductions to be claimed on the federal income tax return for the same tax
			 year for each beneficiary or owner
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-25 - ESTATES AND TRUSTS › Section 810-3-25-.15 - Computation Of Alabama Taxable Income For A Foreign Trust, For Tax Years Beginning After December 31, 2004

Current through Register Vol. 42, No. 9, June 28, 2024
(1) The term "foreign trust" will have the
			 same meaning for Alabama income tax purposes, as is used in with Subchapter J
			 of Chapter 1 of Subtitle A of the Internal Revenue Code,  26 U.S.C. §§
									641 through  692.
(2)
Determination of Foreign Trust
. The determination as
			 to whether a trust is a foreign trust or a United States trust will be made for
			 Alabama income tax purposes in the same manner the determination is made for
			 federal income tax purposes.
(3)
Computation of Alabama Taxable Income
. The Alabama
			 taxable income of a foreign trust will be computed in the same manner as the
			 Alabama taxable income of a nonresident trust is computed.
(4)
Withholding
			 Requirement
. Any withholding applicable to a foreign trust for
			 federal income tax purposes applies equally to Alabama income tax. The rate of
			 Alabama income tax withholding would be equal to the maximum tax rate the owner
			 or grantor is subject to under Alabama income tax law.
(5)
Required
			 Reporting
. Any foreign trust; foreign trust owner; grantor of a
			 foreign trust; beneficiary of a foreign trust; transferor or property to a
			 foreign trust; or, distributor of property from a foreign trust to a United
			 States person; subject to special reporting by Subchapter J of Chapter 1 of
			 Subtitle A of the Internal Revenue Code,  26 U.S.C. §§
									641 through  692,
			 will have similar special reporting requirements under Alabama income tax
			 law.
Authors:
Voncile Catledge, Joe Garrett, Ed
				  Cutter, CPA
Statutory Authority:
Code of Ala.
				  1975
, §
										40-2A-7(a)(5).
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-25 - ESTATES AND TRUSTS › Section 810-3-25-.16 - Credit For Income Taxes Paid To Another State Or Territory By A Resident Estate Or Trust

Current through Register Vol. 42, No. 9, June 28, 2024
(1) For tax
			 years beginning after December 31, 2004, if a resident estate or trust conducts
			 a trade or business both in Alabama and in one or more other states or
			 territories, the resident estate or trust is entitled to a credit to be applied
			 to the Alabama income tax for the amount of income tax actually paid to another
			 state or territory on income earned from the conduct of the trade or business
			 in the other states or territories.
(2) The credit for income taxes paid to
			 another state or territory shall be computed in accordance with §
								40-18-21,
Code of Ala. 1975
.
Authors:
Voncile Catledge, Joe Garrett, Ed
				  Cutter, CPA
Statutory Authority:
Code of Ala.
				  1975
, §
										40-2A-7(a)(5).
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-26 - INFORMATION FROM SOURCE OF INCOME › Section 810-3-26-.01 - Information Returns

Current through Register Vol. 42, No. 9, June 28, 2024
(1) All
			 resident payers engaged in a trade or business and making nonwage payments of
			 fifteen hundred dollars ($1,500) or more within a calendar year to any person
			 (whether a resident or nonresident) are required to issue an information return
			 (Federal Form 1099) to the payee and file a copy of such return with the
			 Department. Payments which are required to be reported include all nonwage
			 payments exceeding $1,500 which must be included in the gross income of the
			 recipient under Title 40,
Code of Ala. 1975
.
(2)
Information to be
			 reported
. Each Form 1099 must include the following information:
(a) The payer's name, address and taxpayer
			 identification (federal employers identification number or social security
			 number),
(b) The payee's name,
			 address and taxpayer identification number,
(c) The amount of payments made during the
			 calendar year, and
(d) The type of
			 payment made during the year.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-26 - INFORMATION FROM SOURCE OF INCOME › Section 810-3-26-.02 - Voluntary Withholding Of Alabama Income Tax From Nonwage Payments

Current through Register Vol. 42, No. 9, June 28, 2024
(1) Alabama income
			 tax is not required to be withheld from distributions from a retirement or
			 pension plan, interest payments or other nonwage payments. However, voluntary
			 withholding of Alabama income tax is permissible. If a payer of nonwage
			 payments voluntarily withholds Alabama income tax, the following procedures
			 must be followed:
(a) Payments of amounts
			 withheld must be remitted to the Department in the same manner and at the same
			 time as described in §
									40-18-74,
Code of Ala. 1975
.
(b) On or before January 31 of the year
			 following a nonwage payment from which Alabama income tax was withheld, the
			 payer shall issue the recipient a statement showing the following information:
1. Year of payment.
2. Amount of payment.
3. Amount of Alabama income tax
			 withheld.
4. Amount of federal
			 income tax withheld.
5. Name and
			 address of recipient.
6. Social
			 security number of recipient.
7.
			 Payer's name, address, and Alabama withholding tax account number.
8. Payer's federal employer identification
			 number.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-26 - INFORMATION FROM SOURCE OF INCOME › Section 810-3-26-.03 - Reporting Requirements Of Payment Settlement Entities (PSE)

Current through Register Vol. 42, No. 9, June 28, 2024
(1) Payment
			 settlement entities, third party settlement organizations, electronic payment
			 facilitators or other third parties acting on behalf of a payment settlement
			 entity, all as defined in IRC Section 6050W who are required to file 1099-K
			 information returns with the IRS relating to payments made in settlement of
			 payment card and third-party network transactions must also file a duplicate of
			 such returns with the Department.
(2) Such returns must be filed electronically
			 with the Department and shall include one of the following in their electronic
			 submission:
(a) a duplicate of all 1099-K
			 information returns filed with the IRS, or
(b) a duplicate of all 1099-K information
			 returns related to Alabama taxpayers or participating payees with an Alabama
			 address.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-27 - INDIVIDUAL TAXPAYERS' RETURNS › Section 810-3-27-.02 - Preparation And Filing Of Individual Taxpayer's Return

Current through Register Vol. 42, No. 9, June 28, 2024
(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 returns can
			 also be filed electronically. See the Electronic Tax Return Filing Act,
			 §§
									40-30-1 through
			 40-30-6,
Code of Ala. 1975
. See also Rules
			 810-3-27-.04 through
			 810-3-27-.08.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-27 - INDIVIDUAL TAXPAYERS' RETURNS › Section 810-3-27-.03 - Extension Of Time For Filing Of Individual Taxpayer's Return

Current through Register Vol. 42, No. 9, June 28, 2024
(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 file the
			 required return by the extended due date may not be granted an automatic
			 extension the following (ensuing) year, but may be required to request the
			 extension in writing. If a written request is required, the request must be
			 made to the Commissioner of Revenue or to his designee, and must explain the
			 reason for the request and the reason for failing to timely file the return in
			 the previous year. The request also must state that the individual has no
			 outstanding debts owed to the Department.
(4) An extension of time granted pursuant to
			 this section is not an extension of time for payment of tax. The amount of tax
			 due must be paid on or before the due date of the return without regard to the
			 extension to file the return.
(a) Payment of
			 the tax shall be made via the paper Payment Voucher or by Electronic Funds
			 Transfer (EFT).
(b) However,
			 payment must be made via EFT if the payment exceeds $25,000. Please refer to
			 Regulations
			 810-13-1-.01 and
			 810-13-1-.02.
(c) Underpayment of tax penalties plus any
			 applicable interest will be imposed as provided by law without regard to any
			 extension granted under this section.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-27 - INDIVIDUAL TAXPAYERS' RETURNS › Section 810-3-27-.04 - Election To Participate In The Federal/State Electronic Filing Program

Current through Register Vol. 42, No. 9, June 28, 2024
(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.
Authors:
Ed Cutter, Tavares Matthews
Statutory Authority:
Code of Ala.
				  1975
, §§
										40-2A-7(a)(5),
				  40-30-4.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-27 - INDIVIDUAL TAXPAYERS' RETURNS › Section 810-3-27-.06 - Requirements For The Individual Income Tax Declaration For Electronic Filing

Current through Register Vol. 42, No. 9, June 28, 2024
(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
			 Electronic Filing requires the following information:
(a) The taxpayer's first name, middle initial
			 and last name.
(b) The taxpayer's
			 social security number.
(c) If a
			 joint return, the spouse's first name, middle initial, last name and social
			 security number.
(d) The taxpayer's
			 address.
(e) The Alabama taxable
			 income reported by the electronic return.
(f) The net tax liability reported by the
			 electronic return, which is computed by adding the net tax due Alabama to the
			 voluntary contributions to the Alabama Election Campaign Fund and the Neighbors
			 Helping Neighbors Fund.
(g) The
			 total tax payments reported by the electronic return.
(h) The amount of the refund reported by the
			 electronic return.
(i) The
			 signature of the taxpayer and date of the signature.
(j) If a joint return, the signature of the
			 spouse and date of the signature.
(k) The signature of the electronic return
			 originator and date of the signature.
(l) An indication whether the electronic
			 return originator is self-employed.
(m) The firm name of the electronic return
			 originator.
(n) The address,
			 including the zip code, of the electronic return originator.
(o) The federal employer identification
			 number of the electronic return originator.
(p) If the paid preparer is different from
			 the electronic return originator, the following information is required:
1. The signature of the paid preparer and
			 date of the signature.
2. An
			 indication whether the paid preparer is self-employed.
3. The firm name of the paid
			 preparer.
4. The address, including
			 the zip code, of the paid preparer.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-27 - INDIVIDUAL TAXPAYERS' RETURNS › Section 810-3-27-.07 - Acceptance, Monitoring, And Revocation Of Acceptance Into The Alabama Individual Modernized E-File Program For Software Developers - Individual Income Tax Returns

Current through Register Vol. 42, No. 9, June 28, 2024
(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 must be approved on an annual basis and maintain good
			 standing with the Department. The Department has the right to deny an applicant
			 acceptance into the Alabama Individual Modernized E-File Program. To obtain
			 approval software developers must adhere to the following guidelines:
(a) Be accepted by and in good standing with
			 the Internal Revenue Service (IRS) Electronic Filing Program.
(b) Have satisfactorily completed the
			 Department's software developer suitability approval process.
(c) Have an approved Letter of Intent, with
			 original officer signature, on file with the Department.
(d) Have satisfactorily completed the
			 Individual Acceptance Testing System (ATS) with the Department.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-27 - INDIVIDUAL TAXPAYERS' RETURNS › Section 810-3-27-.08 - Acceptance, Monitoring, And Revocation Of Acceptance Into The Alabama Individual Modernized E-File Program For Electronic Return Originators And Transmitters

Current through Register Vol. 42, No. 9, June 28, 2024
(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 agent in order to transmit returns through the Alabama Individual
			 Modernized E-File Program.
(2)
			 Electronic return originators and transmitters accepted by and in good standing
			 with the Internal Revenue Service (IRS) Electronic Filing Program are
			 automatically accepted into the Alabama Electronic Filing Program. This does
			 not include software developers. They must complete the approval process with
			 the Alabama Department of Revenue (See Rule
			 810-3-27-.07).
(3) Electronic return originators and
			 transmitters accepted into the Alabama Electronic Filing Program serve as
			 agents of the Alabama Department of Revenue, and must comply with the
			 requirements of the program as stated in the Alabama Handbook for Modernized
			 e-File (MeF) for Individual Preparers (Publication AL4163).
(4) The Alabama Department of Revenue will
			 conduct random monitoring visits with Electronic Return Originators and
			 Transmitters to verify that the requirements of the Alabama Electronic Filing
			 Program are being met.
(5) The
			 Alabama Department of Revenue reserves the right to revoke the acceptance of an
			 electronic return originator or transmitter for cause. Failure to comply with
			 the guidelines set forth in Alabama Handbook for Modernized e-File (MeF) for
			 Individual Preparers (Publication AL4163) is considered cause.
(6) Any of the following can result in the
			 revocation of an electronic return originator' s or transmitter's acceptance
			 into the program:
(a) Conviction of a
			 criminal offense under the revenue laws of any state or of any offense
			 involving dishonesty, or breach of trust.
(b) Failure to file timely and accurate tax
			 returns, both personal and business.
(c) Failure to pay personal tax liabilities
			 or business tax liabilities.
(d)
			 Failure or refusal to effect corrective action as required by the Alabama
			 Department of Revenue.
(e) Other
			 facts or conduct of a disreputable nature that would reflect adversely on the
			 Alabama Electronic Filing Program.
(f) Unethical practices in return
			 preparation.
(g) Suspension by
			 IRS.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-27 - INDIVIDUAL TAXPAYERS' RETURNS › Section 810-3-27-.09 - Alabama Requirements For Mandatory E-File And Application Of Two-Dimensional (2-D) Barcode On Original Individual Income Tax Returns

Current through Register Vol. 42, No. 9, June 28, 2024
(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
			 returns prepared by that income tax preparer
must
be filed
			 using electronic technology, as defined in the "Electronic Tax Return Filing
			 Act," as codified in Chapter 30 of Title 40,
Code of Ala.
			 1975
.
(b)
1. If a paid, income tax return preparer
			 prepares individual income tax returns using tax preparation software and is
			 not required under subparagraph (a) to electronically file the returns, then
			 the paper returns must include the technology commonly referred to as
			 two-dimensional (2-D) barcode technology if such returns using this technology
			 conform to the format prescribed by the Department.
2. If a paid, income tax return preparer
			 prepares individual income tax returns using tax preparation software and is
			 required under subparagraph (a) to electronically file the returns, but does
			 not submit the returns electronically, then the paper returns must include a
			 signed, election form to "opt out" of electronic filing in addition to
			 including the 2-D barcode technology.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-27 - INDIVIDUAL TAXPAYERS' RETURNS › Section 810-3-27-.10 - Alabama Requirements For Compliance With Administrative Rule 810-3-27-.09

Current through Register Vol. 42, No. 9, June 28, 2024
(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 shown that failure to
			 electronically file or print a 2-D barcode on an acceptable original individual
			 income tax return is due to willful neglect and not due to reasonable cause,
			 then that tax preparer's acceptance in the Alabama e-file program shall be
			 revoked, and that tax preparer shall be unable to electronically transmit
			 individual income tax returns to the Department.
(3) For purposes of this rule, reasonable
			 cause includes, but is not limited to:
(a) A
			 taxpayer may elect not to electronically file an acceptable original individual
			 income tax return by filing a election form to "opt out" of electronic filing.
			 This form must be prescribed by the Department, and must be signed by the
			 taxpayer, or taxpayers in the case of a joint return, and by the preparer. The
			 form must be attached and filed with the paper, original individual income tax
			 return.
(b) Any electronically
			 prepared original individual income tax return that cannot be filed or
			 transmitted electronically by the tax preparer, or any original individual
			 income tax return that cannot be accepted by the Department.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-28 - PARTNERSHIP RETURNS › Section 810-3-28-.02 - Participation In The Federal/State Electronic Filing Program - Partnership/LLC Returns Of Income

Current through Register Vol. 42, No. 9, June 28, 2024
(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.
Authors:
Kathleen F. Abrams, Melissa A.
				  Giles
Statutory Authority:
Code of Ala.
				  1975
, §§
										40-2A-7(a)(5);
				  40-30-4.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-28 - PARTNERSHIP RETURNS › Section 810-3-28-.04 - Requirements For The Partnership/LLC Return Of Income Declaration For Electronic Filing

Current through Register Vol. 42, No. 9, June 28, 2024
(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 Income Declaration for Electronic Filing requires the
			 following information:
(a) The
			 partnership/LLC's name.
(b) The
			 partnership/LLCs Federal Employer Identification Number.
(d) The Partnership Phone Number.
(c) The partnership/LLCs address.
(e) The non-separately stated income
			 allocated and apportioned to Alabama as reported by the electronic
			 return.
(f) If applicable,
			 authorization for the ADOR and its designated financial agent to initiate an
			 electronic funds withdrawal (direct debit) entry to the financial institution
			 account indicated in the tax preparation software for payment of the
			 Partnership/LLCs Alabama taxes owned (as reported on the form PTEC if
			 applicable), and the financial institution to debit the entry to this
			 account.
(g) Authorization for the
			 ADOR to discuss the return and attachments with the preparer.
(h) Consent to the disclosure of all
			 information pertaining to the user of the computer system and software used to
			 create the business tax return and to the electronic transmission of the
			 business tax return to the Department.
(i) The signature of an officer/partner of
			 the partnership/LLC, their title and date of the signature. The Department will
			 accept a signature made on a signature pad (defined in Rule
			 810-3-28-.03).
(j) The signature of the
			 electronic return originator and date of the signature.
(k) An indication whether the electronic
			 return originator is self-employed.
(l) The firm name of the electronic return
			 originator.
(m) The address,
			 including the zip code, of the electronic return originator.
(n) The federal employer identification
			 number of the electronic return originator.
(o) If the paid preparer is different from
			 the electronic return originator, the following information is required:
1. The signature of the paid preparer and
			 date of the signature.
2. An
			 indication whether the paid preparer is self-employed.
3. The firm name of the paid
			 preparer.
4. The address, including
			 the zip code, of the paid preparer.