reglab/statecodes huggingface dataset:
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-2-7 - CAPITAL CREDIT REGULATIONS › Section 810-2-7-.03 - Qualification For Credit And Continuing Availability Requirements

Current through Register Vol. 42, No. 9, June 28, 2024
(1) Scope. This
			 regulation applies to the minimum criteria required for a Project to qualify
			 for the Capital Credit and continuing availability requirements.
(2) Definition. Terms defined in Reg.
			 810-2-7-.01 are incorporated herein by reference for purposes of this regulation, unless
			 the context clearly indicates otherwise.
(3) Purpose. The purpose of this regulation
			 is to specify the minimum criteria required in order to qualify a Project to
			 receive the credit against the Alabama income tax liability and continuing
			 availability requirements.
(4)
			 Procedure. A project sponsored or undertaken by one or more Investing Companies
			 which is in compliance with the capital cost requirements and which is in
			 compliance during the tax year with, the new employees requirements, the base
			 wage requirements, and the continuing availability requirements shall entitle
			 the Investing Company or Companies, or the shareholders, partners, members,
			 owners, or beneficiaries to the Capital Credit.
(a) Minimum Capital Costs
1. Capital Costs incurred which are not less
			 than $2,000,000 and the Predominant Trade or Business Activity conducted at the
			 Project will constitute an Industrial, Warehousing or Research
			 activity.
2. A Small Business
			 Addition the Capital Costs incurred which are not less than $1,000,000 and the
			 Predominant Trade or Business Activity conducted at the Project will constitute
			 and Industrial, Warehousing or Research activity.
3. A Headquarters Facility the capital cost
			 of which is not less than $2,000,000.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-2-7 - CAPITAL CREDIT REGULATIONS › Section 810-2-7-.04 - Computation Of Available Capital Credit

Current through Register Vol. 42, No. 9, June 28, 2024
(1) Scope. This regulation specifies the
			 amount of Capital Credit available to an Investing Company or Companies or its
			 shareholders, partners, members, owners or beneficiaries.
(2) Definitions. Terms defined in Reg.
			 810-2-7-.01 are incorporated herein by reference for purposes of this regulation, unless
			 the context clearly indicates otherwise.
(3) Purpose. The purpose of this regulation
			 is to specify the annual amount of credit available, to provide a method to
			 determine the amount of credit available during tax periods of less than one
			 year, to provide the method used to determine the applicable share of the
			 Capital Credit available to each Investing Company or its shareholders,
			 partners, members, owners, or beneficiaries for each tax year which the
			 Investing Company qualifies for the Capital Credit.
(4) Procedure. An Investing Company or
			 Companies in a Qualifying Project as defined in Regulation
			 810-2-7-.03 or the shareholders, partners, members, owners, or beneficiaries of the
			 Investing Company or Companies shall be allowed a credit against the Alabama
			 income tax liability generated by or arising out of the Qualifying Project.
(a) The Capital Credit shall be limited to
			 the income tax liability attributable to the income generated by or arising out
			 of the Project or five percent of the Capital Costs of the Qualifying Project,
			 whichever is less.
1. The Alabama income tax
			 liability attributable to the Alabama income generated by or arising out of the
			 Project may be determined by either of the following methods.
(i) Allocation Method. The recipient of the
			 capital credit may allocate the Alabama income tax liability attributable to
			 the Alabama income generated by or arising out of the Project using a
			 computation determined by the Department.
(ii) With/without Method. This method
			 requires the recipient to compute its tax liability attributable to the Alabama
			 income generated by or arising out of the Project by completing a second set of
			 federal and state income tax returns excluding the Alabama income attributable
			 to project operations. Any deductions limited by the amount of adjusted gross
			 income, including the federal income tax deduction for state purposes, shall be
			 adjusted in the second returns. The difference in the Alabama income tax
			 liability is the amount attributable to the Alabama income generated by or
			 arising out of the Project.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-2-7 - CAPITAL CREDIT REGULATIONS › Section 810-2-7-.05 - Determination Of Qualifying Project Income

Current through Register Vol. 42, No. 9, June 28, 2024
(1) Scope. This regulation applies to the
			 method by which a Reporting Company shall specify the method by which income
			 generated by or arising out of a Qualifying Project will be
			 determined.
(2) Definitions. The
			 following terms have the meaning ascribed to them for purposes of this
			 regulation, unless the context clearly indicates otherwise.
(a) Project Property Factor. The Project
			 Property Factor is a fraction, the numerator of which is the total average
			 Project property in Alabama owned during the tax period by the Investing
			 Company, and the denominator of which is the total average property in Alabama
			 (generally, the numerator of the property factor in the Alabama income tax
			 return) during the tax period. The numerator of this Project factor shall be
			 computed in a like manner as provided for the property factor in Chapter 27 of
			 Title 40.
(b) Project Payroll
			 Factor. The Project Payroll Factor is a fraction, the numerator of which is the
			 total amount paid in Alabama during the tax period by the Investing Company for
			 compensation paid those employees employed at the Qualifying Project site, and
			 the denominator of which is the Total Compensation paid in Alabama for the
			 production of business income (generally, the numerator of this Project factor
			 shall be computed in a like manner as provided for the payroll factor in
			 Chapter 27 of Title 40.
(c) Project
			 Sales Factor. The Project Sales Factor is a fraction, the numerator of which is
			 the total Project sales in Alabama made during the tax period by the
			 Corporation, and the denominator of which is the total sales in Alabama
			 (generally, the numerator of the sales factor in the Alabama income tax return)
			 during the tax period. The numerator of this Project factor shall be computed
			 in a like manner as provided for the sales factor in Chapter 27 of Title
			 40.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-2-7 - CAPITAL CREDIT REGULATIONS › Section 810-2-7-.06 - Allocation Of The Capital Credit

Current through Register Vol. 42, No. 9, June 28, 2024
(1) Scope. This regulation applies to the
			 written agreement between the Department and the Investing Company or Companies
			 with respect to Qualifying Projects undertaken by partnerships, limited
			 liability companies or other Joint Ventures and the method by which the
			 Qualifying Project's Alabama taxable apportionable income or the Capital Credit
			 (or item thereof) is allocated among the business entities investing in the
			 Project.
(2) Purpose. The purpose
			 of this regulation is to provide the guidelines necessary to allocate the
			 Project's Alabama taxable apportionable income or the Capital Credit (or item
			 thereof) among the shareholders, partners, members, owners or beneficiaries of
			 the Investing Company or Companies entitled to the Project's Alabama taxable
			 apportionable income or the Capital Credit (or item thereof).
(3) PROCEDURE.
(a) Allocation of Capital Credit. The Capital
			 Credit shall be allocated among the shareholders, partners, members, owners or
			 beneficiaries of the Investing Company or Companies entitled to the Capital
			 Credit based on their distributive share, whether or not distributed, of the
			 Project's Alabama taxable apportionable income (or item thereof).
1. The Allocations of Capital Credit schedule
			 contained in Form:INT, and Form:INT-2, shall serve as the written agreement
			 between the Department and the Investing Company or Companies with respect to
			 Qualifying Projects undertaken by partnerships, limited liability companies or
			 other Joint Ventures and the method by which the Qualifying Project's Alabama
			 taxable apportionable income or the Capital Credit (or item thereof) is
			 allocated among the business entities investing in the Project. The most recent
			 form filed by the Project shall be considered the current allocation to be used
			 by the Project.
(i) Any changes made to the
			 Allocation of Capital Credit schedule after the filing of the Form:INT-2 by the
			 Reporting Company shall be reported to the Department on the
			 Form:INT-4.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-2-7 - CAPITAL CREDIT REGULATIONS › Section 810-2-7-.07 - Affidavit Required

Current through Register Vol. 42, No. 9, June 28, 2024
(1)
			 Scope. This regulation applies to the Affidavit that is required to be filed
			 with the Department which states that the Investing Company was, during the tax
			 year for which the Capital Credit was claimed, in complete compliance with
			 Section
			 40-18-198,
Code of Ala. 1975
, as amended.
(2) Definitions. Terms defined in Reg.
			 810-2-7-.01 are incorporated herein by reference for purposes of this regulation, unless
			 the context clearly indicates otherwise.
(3) Purpose. The purpose of this regulation
			 is to provide the guidelines necessary to insure the Investing Company
			 certifies to the Department that the conditions required to entitle the
			 Investing Company to the Capital Credit have been met during the tax year for
			 which the Capital Credit is claimed.
(4) Procedure. At the time of filing any tax
			 return with the Department in which a Capital Credit is claimed against the
			 income generated by or arising out of a Qualifying Project, the chief executive
			 officer, the chief financial officer, or the Person signing the tax return on
			 behalf of the Investing Company shall file with the Department an Affidavit
			 stating that
(a) the Investing Company was
			 during the tax year for which the Capital Credit is claimed, in compliance with
			 the conditions required to be met in order to qualify the Investing Company for
			 the Capital Credit, and
(b) the sum
			 of all Capital Credits utilized to date when added to the Capital Credit
			 claimed in the current return, do not exceed the Capital Costs of the
			 Qualifying Project.
Author:
Verlon Frost
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-2-7 - CAPITAL CREDIT REGULATIONS › Section 810-2-7-.08 - Election To Receive Capital Credit

Current through Register Vol. 42, No. 9, June 28, 2024
The election to receive the Capital Credit for those entities
				approved by the State Industrial Development Authority prior to January 16,
				1995 expired on December 31, 1996.
Authors:
Jeannie K. Brown, Kelly M.
				Graham
Statutory Authority:
Code of Ala.
				  1975
, §§
										40-2A-7(a)(5),
				  40-18-197,
				  as amended.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-2-8 - ALABAMA BUSINESS PRIVILEGE TAX AND CORPORATE SHARES TAX › Section 810-2-8-.01 - Taxable Income For Determining The Applicable Privilege Tax Rate

Current through Register Vol. 42, No. 9, June 28, 2024
(1) For tax years
			 beginning after December 31, 1999, the taxable income used to compute the tax
			 rate for the Alabama Business Privilege Tax shall be determined as follows:
(a) C Corporations.
1. The taxable income used to determine the
			 tax rate for the privilege tax shall be the federal taxable income before net
			 operating loss and special deductions. This income shall be apportioned in
			 accordance with §
										40-27-1,
Code of Ala. 1975
, and the accompanying rules.
			 Deductions shall not be allowed for the federal income tax or the Alabama net
			 operating loss in computing an income category for purposes of determining the
			 rate for the privilege tax. C corporations filing as members of an Alabama
			 consolidated group shall determine taxable income for the privilege tax on a
			 separate company basis.
2.
			 Corporations granted permission by the Alabama Department of Revenue to use
			 separate accounting to determine Alabama taxable income shall compute the
			 income based on Internal Revenue Service Form 1120. The taxable income before
			 the deductions for the net operating loss and special deduction shall be used
			 to determine the income category for purposes of determining the rate for the
			 privilege tax.
3. Corporations
			 granted permission by the Alabama Department of Revenue to use any other
			 alternative methods to apportion income shall use these methods to determine
			 the taxable income used to compute the tax rate for the privilege
			 tax.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-2-8 - ALABAMA BUSINESS PRIVILEGE TAX AND CORPORATE SHARES TAX › Section 810-2-8-.02 - Determination Of The Apportionment Factors For The Privilege Tax

Current through Register Vol. 42, No. 9, June 28, 2024
(1) For tax years
			 beginning after December 31, 1999, taxpayers engaged in multistate operations
			 will determine the Apportionment Factors used to compute Alabama net worth as
			 follows:
(a) C Corporations, S Corporations,
			 Limited Liability Entities, Real Estate Investment Trusts, and Disregarded
			 Entities engaged in multistate operations shall apportion net worth computed
			 under §
									40-14A-23,
Code of Ala. 1975
, in accordance with §
									40-27-1,
Code of Ala. 1975
, and the accompanying rules. During
			 the determination period, the factors used to determine Alabama net worth shall
			 be computed in the same manner as prescribed for purposes of the income tax
			 levied by Chapter 18, Title 40,
Code of Ala.
			 1975
.
(b) Financial
			 Institutions shall apportion net worth computed under §
									40-14A-23 in accordance with Chapter 16, Title 40,
Code of Ala.
			 1975
, and the accompanying rules. During the determination period,
			 the factors used to determine Alabama net worth shall be computed in the same
			 manner as prescribed for purposes of the financial institution excise
			 tax.
(c) Insurance companies
			 subject to the insurance premium tax levied by Chapter 4A of Title 27,
Code of Ala. 1975
, shall apportion income based on the
			 ratio of the insurer's Alabama premium income to its nationwide total direct
			 premiums. The information used to determine this ratio is reflected on Schedule
			 T of the insurer's annual statement filed with the insurance commissioner for
			 the immediate preceding tax year.
Author:
Voncile Catledge
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-2-8 - ALABAMA BUSINESS PRIVILEGE TAX AND CORPORATE SHARES TAX › Section 810-2-8-.03 - Executive Of Privilege Tax Return

Current through Register Vol. 42, No. 9, June 28, 2024
A paid preparer may execute and file the business privilege tax
				return, extension request, and the annual report, if a power of attorney is on
				file, or is filed simultaneously with the return, etc., authorizing this
				action. Otherwise, the return, etc. must be executed by one of the officers
				specified in Section
				40-18-39(e),
Code of Ala. 1975
.
Author:
Michael E. Mason
Statutory Authority:
Code of Ala.
				  1975
, §§
										40-2A-7(a)(5),
				  40-14A-26.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-2-8 - ALABAMA BUSINESS PRIVILEGE TAX AND CORPORATE SHARES TAX › Section 810-2-8-.04 - Business Privilege Tax - Transition Rules From A Calendar Year Basis To A Fiscal Year Basis

Current through Register Vol. 42, No. 9, June 28, 2024
(1) Scope. This
			 rule is issued pursuant to Section
			 40-2A-7(a)(5),
			 Code of Ala 1975, to provide guidance to business entities subject to the
			 Business Privilege Tax to transition from a calendar year tax basis to a fiscal
			 year tax basis and provide for the computation of a tax obligation when an
			 accounting period change is made.
(2) Definitions. The following terms have the
			 meanings ascribed to them for purposes of this rule:
(a) Business Privilege Tax. The tax levied by
			 Section
			 40-14A-22,
Code of Ala. 1975
.
(b) Calendar Year Tax Period. The period from
			 January 1 of each year through December 31 of that year.
(c) Fiscal Year Tax Period. Any 365
			 consecutive day period other than a calendar year tax period.
(d) Determination Period. A taxpayer's
			 taxable period that precedes the taxpayer's current taxable period.
(d) Determination Date. The date upon which
			 the Business Privilege Tax accrues.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-2-8 - ALABAMA BUSINESS PRIVILEGE TAX AND CORPORATE SHARES TAX › Section 810-2-8-.05 - Election To File As A Family Limited Liability Entity

Current through Register Vol. 42, No. 9, June 28, 2024
(1) Any entity qualifying to elect status as
			 an Electing Family Limited Liability Entity as defined by §
								40-14A-1(h),
Code of Ala. 1975
, must file with the Department of
			 Revenue an annual election to be taxed as a family limited liability entity for
			 the taxable year represented by the Business Privilege Tax return.
(2) The election must be attached to the
			 Business Privilege Tax return and filed on or before the due date of the return
			 (including extensions).
(3) The
			 election must be made on forms prescribed by the Department, and must contain
			 the following:
(a) Name and FEIN of the
			 taxpayer;
(b) A statement that the
			 profits and capital interests of the entity were calculated using the
			 constructive ownership rules of  26 U.S.C. §
										318, without regard to the 50%
			 limitation contained in  26 U.S.C. §
										318(a)(2)(C)  and  26 U.S.C. §
										318(a)(3)(C);
(c) Indication
			 whether the entity meets the gross receipts test, the assets test, or both, by
			 completing the Electing Family Limited Liability Election Form in its entirety;
			 and
(d) Signature of the taxpayer
			 or authorized representative.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-2-8 - ALABAMA BUSINESS PRIVILEGE TAX AND CORPORATE SHARES TAX › Section 810-2-8-.06 - Extension Of Time For Filing Of Business Privilege Tax Returns

Current through Register Vol. 42, No. 9, June 28, 2024
(1) All entities
			 other than financial institutions as discussed in paragraph (2) below required
			 under Code Section
			 40-14A-25 to
			 file an Alabama Business Privilege Tax ("BPT") Return with the Department shall
			 file no later than the due date of the corresponding Federal Income Tax Return
			 as required to be filed under federal law, without regard to any
			 extension.
(2) BPT Returns for all
			 members of a financial institution group shall be due no later than the
			 corresponding Financial Institution Excise Tax Return due date, without regard
			 to any extension.
(3) An extension
			 for filing the returns above shall be granted if the corresponding Federal
			 Income Tax Return was extended for the same length of time.
(4) There is no provision in the Alabama
			 Business Privilege Tax law to allow an extension of time to pay the amount of
			 tax due. An extension of time granted to file the return 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). Any payment that exceeds $750 must be made via EFT. Please
			 refer to Rules
			 810-13-1-.01 and
			 810-13-1-.03.
(b) Underpayment or late payment of tax plus
			 any applicable penalties and 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 810-2-8 - ALABAMA BUSINESS PRIVILEGE TAX AND CORPORATE SHARES TAX › Section 810-2-8-.07 - Definition Of Homeowners Association For Purposes Of Administering The Alabama Business Privilege Tax Law

Current through Register Vol. 42, No. 9, June 28, 2024
(1) For purposes of administering the Alabama
			 business privilege tax law levied by §
								40-14A-22,
Code of Ala. 1975
, effective with business privilege
			 taxable years beginning on or after January 1, 2009, and business privilege tax
			 determination periods beginning on or after January 1, 2008:
(a) Entities which are formed by restrictive
			 covenant or a declaration of restrictions by the owners of real property in a
			 defined area which are united as a nonprofit association to improve or maintain
			 the area's quality will be presumed to be exempt from the Alabama business
			 privilege tax as "homeowners associations" referred to in §
									40-14A-43,
Code of Ala. 1975
.
(b) The not-for-profit corporations referred
			 to as "property owners' associations" in §
									40-14A-22,
Code of Ala. 1975
, will be treated as "homeowners
			 associations," as referred to in §
									40-14A-43,
			 and will be exempt from the Alabama business privilege tax.
(c) A unit owners' association organized
			 under the Alabama Uniform Condominium Act will be treated as a homeowners
			 association in accordance with §
									40-14A-43,
			 if the association is a nonprofit entity.
(d) For-profit entities are not presumed to
			 be homeowners associations for purposes of the Alabama business privilege tax
			 exemption provided for in §
									40-14A-43,
Code of Ala. 1975
.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-2-8 - ALABAMA BUSINESS PRIVILEGE TAX AND CORPORATE SHARES TAX › Section 810-2-8-.09 - Business Privilege Tax Filing Requirements For Disregarded Entities And Owners Of Disregarded Entities

Current through Register Vol. 42, No. 9, June 28, 2024
(1)
Scope
. This
			 regulation provides guidance concerning the Alabama business privilege tax
			 filing requirements for certain disregarded entities and the owners of the
			 disregarded entities.
(2)
Net Worth Computation of Disregarded Entities
. Section
			 40-14A-23,
Code of Ala. 1975
, establishes the net worth
			 computation for business entities subject to the Alabama business privilege
			 tax. In accordance with the section, the net worth computations of a
			 disregarded entity differ based upon whether the owner of the disregarded
			 entity is subject to the Alabama business privilege tax. See Section
			 40-14A-1,
Code of Ala. 1975
, for a definition of "disregarded
			 entity."
(a)
Disregarded Entity
			 Net Worth Computation if the Owner of the Disregarded Entity is Subject to the
			 Alabama Business Privilege Tax
. The net worth of the disregarded
			 entity shall be zero, and the items that would enter into determining the net
			 worth of the disregarded entity shall be used in computing the net worth of the
			 owner of the disregarded entity.
1. Both the
			 disregarded entity and the disregarded entity's owner would be required to file
			 an Alabama business privilege tax return.
2. The disregarded entity must disclose the
			 owner's name and Federal Employer Identification Number (FEIN) as required by
			 the Alabama business privilege tax form.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-2-8 - ALABAMA BUSINESS PRIVILEGE TAX AND CORPORATE SHARES TAX › Section 810-2-8-.10 - Business Privilege Tax Filing Requirements, Clarifications and Explanations

Current through Register Vol. 42, No. 9, June 28, 2024
(1)
Scope
. This regulation provides guidance concerning
			 the general filing requirements for taxpayers subject to the Alabama business
			 privilege tax.
(a) Section
			 40-14A-22,
Code of Ala. 1975
, levies the annual Alabama business
			 privilege tax on every corporation, limited liability entity, and disregarded
			 entity doing business in Alabama, or organized, incorporated, qualified or
			 registered under the laws of Alabama.
1. The
			 terms "corporation", "limited liability entity," and "disregarded entity" are
			 defined in Section
			 40-14A-1,
Code of Ala. 1975
.
2. "Business entity" when used in this
			 regulation means corporations, limited liability entities, and disregarded
			 entities, as defined in Section
			 40-14A-1,
Code of Ala. 1975
.
3. "Qualified or registered" refers to the
			 registration of a foreign business entity with the Alabama Secretary of State's
			 Office to do business in the state of Alabama, in accordance with the
			 requirements of Title 10,
Code of Ala. 1975
.
4. "Doing business in Alabama" is not defined
			 in the
Alabama Business Privilege Tax Act of
			 1999
.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-2-8 - ALABAMA BUSINESS PRIVILEGE TAX AND CORPORATE SHARES TAX › Section 810-2-8-.11 - Issuance Of A Certificate Of Good Standing For The Alabama Business Privilege Tax. (Repealed)

Current through Register Vol. 42, No. 9, June 28, 2024
Authors:
Neal Hearn, Brenda J. Russ, Cathy
				  McCary, CPA
Statutory Authority:
Code of Ala.
				  1975
, §§
										40-2A-7(a)(5),
				  40-2A-10.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-2-8 - ALABAMA BUSINESS PRIVILEGE TAX AND CORPORATE SHARES TAX › Section 810-2-8-.13 - Requirements For The Business Privilege 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 Business Privilege
			 Tax declaration for electronic filing through the Alabama Business Modernized
			 E-File Program (MeF).
(2) The
			 Business Privilege Tax Declaration for Electronic Filing requires the following
			 information and authorizations:
(a) The
			 Business Entity/Company name.
(b)
			 The Business Entity/Company Federal Employer Identification Number.
(c) The Business Entity/Company Business
			 Privilege Account Number.
(d) The
			 Business Entity/Company address.
(e) The net annual report fee due reported by
			 the electronic return.
(f) The
			 total Business Privilege Tax Due reported by the electronic return.
(g) The amount of refund reported by the
			 electronic return.
(h) The amount
			 due reported by the electronic return.
(i) The amount of payment remitted
			 electronically.
(j) If applicable,
			 authorization for the Department 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 entity' s Alabama taxes owed on this return, and the financial institution
			 to debit the entry to this account.
(k) Authorization for the Department to
			 discuss the return and attachments with the preparer.
(l) Consent to the disclosure of all
			 information pertaining to the user of the computer system and software used to
			 create the business return and to the electronic transmission of the business
			 tax return to the Department.
(m)
			 The signature of an officer/partner of the Business Entity/Company, their title
			 and date of the signature. The Department will accept a signature made on a
			 signature pad (defined in Rule
			 810-2-8-.12).
(n) The signature of the electronic return
			 originator and date of the signature.
(o) An indication whether the electronic
			 return originator is self-employed.
(p) The firm name of the electronic return
			 originator.
(q) The address,
			 including the zip code, of the electronic return originator.
(r) The federal employer identification
			 number of the electronic return originator.
(s) 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 810-2-8 - ALABAMA BUSINESS PRIVILEGE TAX AND CORPORATE SHARES TAX › Section 810-2-8-.14 - Acceptance, Monitoring, And Revocation Of Acceptance Into The Alabama Business Modernized E-File Program For Software Developers - Business Privilege Tax

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 business privilege tax returns
			 to be electronically filed through the Alabama Business 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 any applicant acceptance into
			 the Alabama Business 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
			 Business Acceptance Testing System (BATS) with the Department.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-2-8 - ALABAMA BUSINESS PRIVILEGE TAX AND CORPORATE SHARES TAX › Section 810-2-8-.15 - Acceptance, Monitoring, And Revocation Of Acceptance Into The Alabama Business Modernized E-File Program For Electronic Return Originators And Transmitters - Business Privilege Tax

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 - See Rule
			 810-2-8-.14)
			 to obtain and sustain active approval to serve as a Department electronic
			 filing agent in order to transmit returns through the Alabama Business
			 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 Department (See Rule
			 810-2-8-.14).
(3) Electronic return originators
			 and transmitters accepted into the Alabama Electronic Filing Program serve as
			 agents of the Department and must comply with the requirements of the program
			 as stated in the Alabama Business Modernized E-file Program: Software
			 Developers and Transmitters Guidelines and Schemas (Publication
			 AL4164).
(4) The Department 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
			 Department 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 the Alabama Business Modernized E-file Program:
Handbook
			 for Software Developers and Transmitters (Publication AL4164)
is
			 considered just 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
			 Department.
(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 810-2-8 - ALABAMA BUSINESS PRIVILEGE TAX AND CORPORATE SHARES TAX › Section 810-2-8-.16 - Alabama Requirements For Mandatory E-File Of Business Privilege Tax Returns Prepared By Financial Institution Groups

Current through Register Vol. 42, No. 9, June 28, 2024
(1) Scope - This rule explains the electronic
			 filing mandate requirements for Business Privilege Tax returns prepared by
			 Financial Institution Groups.
(2)
			 Definitions.
(a) "Financial Institution
			 Group" as defined in Section
			 40-14A-22(f),
			 Code of Alabama 1975.
(b)
			 "Financial Institution" as defined in Section
			 40-16-1,
Code of Ala. 1975
.
(c) "Fiscal Year". The annual period used by
			 a taxpayer to determine its federal income tax, financial institution excise
			 tax, or report its financial results.
(d) "Taxable Year" is the fiscal year used by
			 the taxpayer to file returns required under the income tax levied by Chapter 18
			 or the financial institution excise tax levied by Chapter 16, or, in the case
			 of an insurance company subject to the premium tax levied by Chapter 4A of
			 Title 27, the calendar year.
(e)
			 "Determination Period" is the taxpayer's taxable year that precedes the
			 taxpayer's current taxable year.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-2-8 - ALABAMA BUSINESS PRIVILEGE TAX AND CORPORATE SHARES TAX › Section 810-2-8-.17 - Requirements For The Alabama Electronic Business Privilege Tax Return

Current through Register Vol. 42, No. 9, June 28, 2024
(1)
SCOPE
- To define the filing and payment requirements for an
			 Alabama electronic business privilege 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 rejected
			 returns.
(2)
Return Filing
			 and Payment Requirements
(a) A
			 complete Alabama electronic business privilege tax return will consist of XML
			 data transmitted electronically and supporting binary documents (such as .pdf
			 documents) as required by the Alabama Business Privilege Tax Modernized
			 Electronic Filing (MeF) schemas, business rules, and Handbook for Software
			 Developers and Transmitters (Publication 4164). A complete Alabama electronic
			 return must contain the same information as a comparable Alabama business
			 privilege tax return as if filed entirely on paper.
(b) All entities that electronically file
			 their Alabama business privilege tax return must also pay their tax liability
			 electronically.
(c) This rule
			 applies to and allows business privilege tax returns to be electronically filed
			 through the Department's Internet-based electronic filing program or the
			 Alabama Business Modernized e-filing Program (MeF) or their successors and as
			 they may exist from time to time. Rules
			 810-2-8-.12 through
			 810-2-8-.15 apply to returns that are transmitted through the Alabama Business Modernized
			 e-filing Program (MeF).
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-2 - PERSONS AND SUBJECTS GENERALLY SUBJECT TO TAX › Section 810-3-2-.01 - Individuals Subject To Alabama Income Tax

Current through Register Vol. 42, No. 9, June 28, 2024
(1) Individuals domiciled within Alabama
			 (residents) are taxable on their entire income, whether earned within or
			 without Alabama, subject to certain exclusions and exemptions as provided under
			 Alabama income tax law, regardless of their physical presence within Alabama at
			 any time during the taxable year. Individuals domiciled within Alabama should
			 file a Resident Individual Income Tax Return, Form 40 or 40A each year.
(a) Domicile is the home, the fixed place of
			 habitation; while residence is a transient place of dwelling. Domicile is the
			 place where one lives and has his permanent home and principal establishment,
			 and to which he has the intention of returning when he is absent. Domicile may
			 be established by birth, by choice, or by operation of law.
(b) Each person has one and only one
			 domicile. Once established, a domicile continues until a new one is established
			 coupled with the abandonment of the old.
1.
			 Domicile is established by physical presence in a jurisdiction, coupled with
			 the present intent to establish domicile in the subject jurisdiction.
(i) A person's intent will be ascertained by
			 examining his actions.
2. A taxpayer has the burden of proof in
			 establishing a change in domicile.
(c) Federal employees, including military
			 personnel, domiciled in Alabama continue to be so domiciled, irrespective of
			 their period of absence or actual place of residence, and are subject to the
			 Income Tax Law of Alabama until proof of change of domicile has been
			 made.
(d) A husband and wife will
			 be presumed to have the same domicile, unless clearly established otherwise.
1. An Alabama resident who marries a
			 nonresident will continue to be an Alabama resident until and unless a new
			 domicile is established as provided in subparagraph (b) above.
2. A nonresident who marries an Alabama
			 resident will continue to be a nonresident until and unless a new domicile is
			 established in Alabama as provided in subparagraph (b) above.
(e) A minor child will be presumed
			 to have the same domicile as the custodial parent or guardian.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-2 - PERSONS AND SUBJECTS GENERALLY SUBJECT TO TAX › Section 810-3-2-.02 - Corporations Subject To Alabama Income Tax

Current through Register Vol. 42, No. 9, June 28, 2024
(1) Corporations, associations, or
			 joint-stock companies subject to tax only in the state of Alabama are taxable
			 on income from all sources, both inside and outside the state of Alabama.
			 Corporations, associations, or joint-stock companies subject to tax in multiple
			 states, shall allocate and apportion their income as defined in the statute and
			 rules under §
								40-27-1,
Code of Ala. 1975
.
(2) For a corporation acting in a fiduciary
			 capacity in Alabama, see Rule
			 810-3-2-.03.
(3) A corporation qualified to do business or
			 doing business in this state and having a valid Selection under
			 26 U.S.C. §
									1362 shall be an Alabama S corporation under
			 the provisions of §
								40-18-160,
			 Code of Ala. 1975, et seq. An S corporation will not pay income tax at the
			 corporate level, but will act as a conduit to pass through income to its
			 shareholders. See §
								40-18-160
Code of Ala. 1975
, and related rules.
(4)
(a)
			 Every organization described in §
									40-18-32,
			 Code of Ala. 1975, which receives "unrelated business taxable income" as
			 defined in
			 26 U.S.C. §
										512, shall file Form 20C reporting such
			 "unrelated business taxable income" and pay any tax due thereon.
(b) Any organization, whether incorporated or
			 not, which receives such "unrelated business taxable income" shall file Form
			 20C and report income and deductions in the same manner as a corporation. Any
			 organization subject to income tax which receives such "unrelated business
			 taxable income" shall file Form 20C and report the income and deductions
			 attributable to Alabama. See the statute and rules under §
									40-27-1,
			 Code of Ala. 1975, for guidance on apportionment and allocation of income and
			 deductions.
Author: Christina Hall and Chris Sherlock.
Authority: §§
										40-2A-7(a)(5),
				40-18-2,
				and
				40-27-1,
Code of Ala. 1975
, and
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-2 - PERSONS AND SUBJECTS GENERALLY SUBJECT TO TAX › Section 810-3-2-.03 - Estates, Trusts And Fiduciaries Subject To Alabama Income Tax

Current through Register Vol. 42, No. 9, June 28, 2024
(1) Every
			 individual or corporation acting in a fiduciary capacity, receiving income from
			 sources within the State of Alabama, is subject to the Alabama income tax with
			 respect to such income. For definitions of resident individuals and resident
			 corporations, see Rules
			 810-3-2-.01 and
			 810-3-2-.02.
(2) An estate or trust resident in the State
			 of Alabama, or having a resident fiduciary, is subject to the Alabama income
			 tax. An estate or trust having income from sources within the State is subject
			 to tax on such income.
Authors:
Nancy Butler, Roy Wiggins, John H.
				  Burgess
Statutory Authority:
Code of Ala.
				  1975
, §§
										40-2A-7(a)(5),
				  40-18-2.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-2.1 - EXEMPT INCOME FOR FOREIGN MISSIONARY SERVICE › Section 810-3-2.1-.01 - Exempt Income For Foreign Missionary Service

Current through Register Vol. 42, No. 9, June 28, 2024
(1) After December 31, 1983, all missionary
			 service income earned by a person engaged in foreign missionary service is
			 exempt (excluded from gross income) if
(a)
			 the person is physically present in a foreign country or countries for a
			 minimum of twenty-four (24) months, and
(b) the person is appointed or employed by a
			 church or other like religious organization.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-3 - INCOME OF OFFICERS OR AGENTS OF THE UNITED STATES, ETC › Section 810-3-3-.01 - Compensation Of Federal Employees

Current through Register Vol. 42, No. 9, June 28, 2024
(1) Salaries, fees, commissions and other
			 income received by officers or agents of the United States, its agencies,
			 instrumentalities, or contractees from the United States or from its agencies
			 and instrumentalities are subject to income taxes levied by the State of
			 Alabama.
(a) These income taxes must be
			 levied only as the State of Alabama is constitutionally or legally authorized
			 to tax such income, and must be taxed without discrimination and only to the
			 same extent and in the same manner other income is taxed.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-4 - ANY INCOME RECEIVED FROM OBLIGATIONS OF THE UNITED STATES › Section 810-3-4-.01 - Interest Or Other Income Received From Obligations Of The United States Or Its Possessions, Agencies, Or Instrumentalities 810-3-4

Current through Register Vol. 42, No. 9, June 28, 2024
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 possessions, agencies or instrumentalities from gross income.
Author
: John Burgess
Statutory Authority
:
Code of Ala.
				  1975
, §§
										40-18-4,
				  40-18-57.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-5 - TAX ON INDIVIDUALS › Section 810-3-5-.01 - Tax On Individuals

Current through Register Vol. 42, No. 9, June 28, 2024
(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, the tax rates for individuals are:
TAXABLE INCOME TAXABLE INCOME
Single, Head of Family, Married
Rate Married Filing Separate Filing Joint
Up to and including
2% 0 - $500 0 - $1,000
4% $500 - $3,000 $1,000 - $6,000
5% $3,000 and over $6,000 and over
Author:
John H. Burgess, Income Tax
				Division
Statutory Authority:
Code of Ala.
				  1975
, §
										40-18-5.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-6 - GAIN OR LOSS - BASIS OF PROPERTY; ADJUSTED BASIS › Section 810-3-6-.01 - Basis In Property

Current through Register Vol. 42, No. 9, June 28, 2024
(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
			 market value on January 1, 1933.
(b) Adjusted basis in property (for
			 transactions before January 1, 1985) - The unadjusted basis in the property,
			 plus the cost of improvements of a permanent character made to the property
			 that have been properly classified as a capital expenditure, minus prior return
			 of investment, depreciation, amortization, depletion, and other reductions in
			 the original cost.
(c) Fair market
			 value - The price at which property would change hands between a willing buyer
			 and a willing seller, neither being under any compulsion to buy or sell and
			 each having knowledge of all relevant facts.
1. The determination of the fair market value
			 of property is generally a question of fact and shall be established by
			 competent evidence. The general way of determining the fair market value of
			 stock, in the absence of knowledge of sales on any given date, is to value the
			 stock on the basis of the corporate assets underlying the stock as disclosed by
			 a balance sheet as of this date.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-6 - GAIN OR LOSS - BASIS OF PROPERTY; ADJUSTED BASIS › Section 810-3-6-.02 - Basis For Computing Gain Or Loss - Exceptions

Current through Register Vol. 42, No. 9, June 28, 2024
(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-.04.
(c) Property Transmitted at Death - See Rule
			 810-3-6-.05.
(d) Property Acquired Upon Like-Kind Exchange
			 - See Rule
			 810-3-6-.06.
(e) Transfers to a Corporation - See Rule
			 810-3-6-.07.
(f) Property Acquired on Liquidation of a
			 Subsidiary - See Rule
			 810-3-6-.08.
(g) Basis of Property of Subsidiary After
			 Acquisition - See Rule
			 810-3-6-.09.
(h) Basis of Property Received in Liquidation
			 in which a Gain or Loss was Recognized - See Rule
			 810-3-6-.10.
(i) Basis of Stock after a Stock Dividend -
			 See Rule
			 810-3-6-.11.
(j) Involuntary Conversion - See Rule
			 810-3-6-.12.
(k) Property Acquired Before January 1, 1933
			 - See Rule
			 810-3-6-.13.
(l) Property Acquired from a Spouse or Former
			 Spouse - See Rule
			 810-3-6-.14.
(m) Basis of Replacement Property in Sale of
			 Stock to ESOP or Cooperative - See Rule
			 810-3-6-.15.
(n) Basis of Property to Subchapter K Entity
			 - See Rule
			 810-3-6-.03.
(o) Basis of Interest in a Subchapter K
			 Entity - See Rule
			 810-3-6-.03.
(p) Basis of Property Distributed by a
			 Subchapter K Entity - See Rule
			 810-3-6-.03.
(q) Basis of Property - Individuals
			 Establishing Alabama Domicile - See Rule
			 810-3-6-.16.
(r) Allocation of Basis - See Rule
			 810-3-6-.17.
Author:
Ed Cutter, CPA