reglab/statecodes huggingface dataset:
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-73.1 - PROVISIONAL CONSTRUCTION EMPLOYERS › Section 810-3-73.1-.01 - Security Instrument Requirements

Current through Register Vol. 42, No. 9, June 28, 2024
(1) Alabama law requires all provisional
			 construction employers to provide a bond of not less than the average estimated
			 annual withholding, but in no case less than $500 per employee. The owner's
			 legal name on the bond form must be in the name of the sole owner, all
			 partners, corporation's name, limited partnership's name, or limited liability
			 company's name. Personal or company checks are not acceptable security
			 instruments.
(2) The required bond
			 instrument may be in the form of a Surety Bond, Cash Bond, or other bonding or
			 credit device deemed acceptable by the Commissioner of Revenue. The bond
			 instrument must be posted and filed per Alabama Department of Revenue
			 policy.
(3) If the Commissioner of
			 Revenue determines that the bond instrument filed is insufficient to cover the
			 average estimated annual tax liability, the Commissioner may require such
			 provisional construction employer to adjust the amount of the bond to cover the
			 amount of estimated liability.
Authors:
Michael E. Mason, Kelly Graham
Statutory Authority:
Code of Ala.
				  1975
, §§
										40-18-73.1 (Act 2007-199),
				  40-2A-7(a)(5),
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-73.1 - PROVISIONAL CONSTRUCTION EMPLOYERS › Section 810-3-73.1-.02 - Compliance Requirements And Procedures Concerning Provisional Construction Employers

Current through Register Vol. 42, No. 9, June 28, 2024
(1) A
			 provisional construction employer is defined in Section
			 40-18-70,
Code of Ala. 1975
, and Rule
			 810-3-70-.03.
			 For purposes of this regulation, the party contracting with a provisional
			 construction employer shall be referred to as the contractor.
(2) Section
			 40-18-73.1,
Code of Ala. 1975
, and Rule 810-3-73.1 -.01 require a
			 provisional construction employer to provide a bond to the Alabama Department
			 of Revenue and specify the proper format and the required amount of the
			 bond.
(3) The bond must be
			 transmitted to the Alabama Department of Revenue with a coversheet, which
			 provides:
(a) The legal name and doing
			 business as (dba), if applicable, of the construction employer deemed a
			 provisional construction employer;
(b) The mailing address of the provisional
			 construction employer;
(c) The
			 Federal Employer Identification Number of the provisional construction
			 employer;
(d) The Alabama
			 withholding tax account number of the provisional construction
			 employer;
(e) The type of bond
			 instrument being provided and the amount;
(f) The name and address of the surety or
			 financial institution, whichever is applicable, named on the accompanying bond
			 instrument;
(g) The name and
			 address of the contractor with which the construction employer has entered into
			 a contract, resulting in the construction employer being deemed a provisional
			 construction employer;
(h) The
			 amount of the contract;
(i) The
			 anticipated period of performance for the contract; and
(j) The number of employees anticipated to be
			 working in Alabama on the contract.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-74 - PAYMENT OF AMOUNTS WITHHELD › Section 810-3-74-.01 - Withholding Returns And Payments

Current through Register Vol. 42, No. 9, June 28, 2024
(1) Every employer required to deduct and
			 withhold tax from the wages of employees under §
								40-18-71,
Code of Ala.
			 1975
, and those persons required to withhold income tax on
			 proceeds of a wager pursuant to §
								40-18-91 and payers who have
			 elected to voluntarily withhold income tax, must remit such withheld taxes to
			 the department as follows:
(a) Form A-6 must
			 be filed and the tax withheld remitted by every withholding tax agent if the
			 amount withheld in either the first or second month of any calendar quarter
			 exceeds one thousand dollars ($1,000.00). Form A-6 must cover only one month.
			 Monthly withholding tax returns (Form A-6) and monthly withholding tax payments
			 are required only for those months in which the tax withheld in that month
			 exceeds one thousand dollars ($1,000.00). Amounts withheld which do not exceed
			 one thousand dollars may also be remitted monthly; however, such payments must
			 be accompanied by Form A-6. Unless prior approval has been obtained from the
			 department, only one payment and one Form A-6 may be filed each
			 month.
(b) Form A-1 "Employer's
			 Quarterly Return of Income Tax Withheld" must be filed by every withholding tax
			 agent and payment made of the total amount of tax withheld, less any tax
			 previously remitted on Form A-6, on or before the last day of the month
			 following the end of the calendar quarter. Form A-1 must accompany all
			 quarterly payments of amounts withheld. Unless prior approval has been obtained
			 from the department, only one payment and one Form A-1 may be filed each
			 quarter.
(c) Unless prior approval
			 has been granted by the department, employers and withholding tax agents must
			 contact the department in order to obtain approval to produce their own
			 forms.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-75 - STATEMENT TO BE FURNISHED EMPLOYEE › Section 810-3-75-.01 - Withholding Statement Furnished Employees

Current through Register Vol. 42, No. 9, June 28, 2024
(1)
(a)
			 Each employer, on or before January 31 of each year or within thirty days after
			 termination of the employment, shall furnish each employee a withholding
			 statement (Form W-2) for the preceding year, in duplicate, showing:
1. The total wages paid,
2. The amount of Alabama income tax
			 withheld,
3. The amount of federal
			 income tax withheld,
4. The name
			 and address of the employee,
5. The
			 social security number of the employee, and
6. The employer's name, address, Federal
			 Identification Number and Alabama withholding tax account number.
7. Qualifying severance payments exempt from
			 Alabama income tax pursuant to Section
			 40-18-19.1,
Code of Ala. 1975
, must not be shown on the Form W-2
			 as Alabama wages, but must be disclosed on the form as "Exempt Severance
			 Payments," which can be abbreviated as "ESP."
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-75 - STATEMENT TO BE FURNISHED EMPLOYEE › Section 810-3-75-.02 - Extensions Of Time For Filing Reports Under Withholding Laws

Current through Register Vol. 42, No. 9, June 28, 2024
On written application by the taxpayer, extensions of up to
				thirty days may be granted with respect to required reports under Section
				40-18-75,
Code of Ala. 1975
. Requests for extension should state
				the reason the extension is needed, and should be mailed in time to receive
				consideration by the Department prior to the due date for the
				report.
Authors:
Ewell Berry, Neal Hearn
Statutory Authority:
Code of Ala.
				  1975
, §§
										40-2A-7(a)(5),
				  40-18-75(c).
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-75 - STATEMENT TO BE FURNISHED EMPLOYEE › Section 810-3-75-.03 - Annual Returns Of Withholding Tax Information

Current through Register Vol. 42, No. 9, June 28, 2024
(1) On or before the last day of January each
			 year, every withholding tax agent who has paid Alabama wages of $1,500 or more
			 or has withheld Alabama income tax, must file with the Department of Revenue
			 the wage and tax information as described in Rule
			 810-3-75-.01 for the previous calendar year. This submission consists of two parts:
(a) Form A-3, Annual Reconciliation of
			 Alabama Income Tax Withheld, and
(b) A copy of Form W-2 for each employee (see
			 Rule
			 810-3-75-.01), and/or a copy of each statement required by Rule
			 810-3-75-.01 to be furnished to a recipient of proceeds from a wager subject to withholding
			 pursuant to §
									40-18-91,
			 Code of Ala. 1975. If tax has been withheld from a non-wage payment, a copy of
			 the Form 1099 used to report this payment must be submitted. See Rule
			 810-3-75-.04.
1. All employers and withholding agents
			 submitting 25 or more Forms W-2 and/or information returns, if Alabama income
			 tax has been withheld, must submit this information and Form A-3 electronically
			 through the Department's web site.
(i)
			 Withholding agents submitting less than 25 wage and tax statements and/or
			 information returns may voluntarily submit this information
			 electronically.
(ii) Employers or
			 withholding agents who electronically file their monthly or quarterly
			 withholding tax returns and payment during the year are also required to submit
			 their wage and tax information electronically through the Department's
			 website.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-75 - STATEMENT TO BE FURNISHED EMPLOYEE › Section 810-3-75-.04 - Voluntary Withholding

Current through Register Vol. 42, No. 9, June 28, 2024
(1)
			 Alabama income tax is not required to be withheld from retirement
			 distributions, pensions, interest payments or other payments which are not wage
			 payments. However, voluntary withholding of Alabama income tax from such
			 payments is permissible. If the election to voluntarily withhold Alabama income
			 tax is made, procedures outlined in this rule must be followed.
(2)
Remitting Tax
			 Withheld
. Tax withheld voluntarily 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
.
(3)
Statement To Be Furnished
			 Recipient
. On or before January 31 of the year following a
			 non-wage payment from which Alabama income tax was voluntarily withheld, the
			 payer shall issue the recipient a Form 1099 showing the following information:
(a) Amount of payment.
(b) Amount of Alabama income tax
			 withheld.
(c) Amount of federal
			 income tax withheld.
(d) Name,
			 address and social security number of recipient.
(e) Payer's name, address, Alabama
			 withholding tax account number and social security number or federal
			 identification number.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-75 - STATEMENT TO BE FURNISHED EMPLOYEE › Section 810-3-75-.05 - Third-Party Reporting Requirements

Current through Register Vol. 42, No. 9, June 28, 2024
(1) Third-party payers are generally
			 insurance companies who have made a wage payment (i.e., sick pay) to an
			 employee on behalf of the employer. The third-party payer remits the tax
			 withheld under the third-party payer's withholding tax account
			 number.
(2) If the third-party
			 payer has remitted tax on behalf of an employer, the payer must submit a
			 listing to the Department of appropriate accounts to be credited for
			 withholding tax payments. After receiving this list, the Department will
			 transfer tax withheld from the third-party payer's withholding tax account to
			 the appropriate employer's withholding tax account. The listing submitted by
			 the third-party payer must include the following information for each
			 employer's withholding tax account to be credited:
(a) Name of employer,
(b) Federal employer identification
			 number,
(c) Alabama withholding tax
			 account number,
(d) Amount to be
			 transferred, and
(e) Year to which
			 payment should be transferred.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-76 - LIABILITY FOR TAX WITHHELD › Section 810-3-76-.01 - Liability For Tax Withheld

Current through Register Vol. 42, No. 9, June 28, 2024
(1)
			 Any person required under §
								40-18-71,
Code of Ala. 1975
, and/or §
								40-18-91 to withhold, account for, and pay over income tax shall be liable for the tax
			 required to be withheld.
(a) "Person" as used
			 herein includes an officer of a corporation or a member of a partnership or
			 other entity whose duty it is to withhold, account for, and pay over the tax
			 required under §
									40-18-71.
(b) Any income tax withheld shall be deemed
			 to be held in trust for the State of Alabama. See §
									40-18-74(c).
(c) An employer or withholding tax agent is
			 liable for any additional income tax withheld pursuant to an agreement as
			 provided in §
									40-18-71(e).
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-77 - REFUND TO EMPLOYER › Section 810-3-77-.01 - Withholding Tax Refunds To Employers

Current through Register Vol. 42, No. 9, June 28, 2024
(1) If an employer withholds from an
			 employee's wages an amount of tax which exceeds the amount required to be
			 withheld pursuant to §
								40-18-71,
Code of Ala. 1975
, and remits the amount withheld to
			 the Department, no refund will be made to the employer. The employee should
			 claim credit for the full amount withheld on his of her Alabama income tax
			 return filed for that year. See Rule
			 810-3-78-.01.
(2) If an employer remits to the Department
			 an amount in excess of that which is due, the employer must make application
			 for refund or claim credit within three years from the date the return was
			 filed, or two years from the date of payment of the tax, whichever is later.
			 Unless a claim is made within this period, no credit or refund may be
			 allowed.
(3) An employer who
			 erroneously withholds Alabama income tax and remits such amount to the
			 Department for an employee whose services are performed in another state and
			 who is not required under §
								40-18-27 to file an Alabama income tax return, may make application for refund or
			 credit.
(4) When computing the
			 amount of a withholding tax refund or credit, the amount of withholding
			 remitted for a particular period shall include only amounts remitted to the
			 Department. Employers shall not receive refunds or credits for amounts withheld
			 as Job Development Fees.
Authors
: Ewell Berry, Ann F. Winborne, CPA, Neal
				Hearn, CPA
Statutory Authority
:
Code of Ala.
				  1975
, §§
										40-2A-7(a)(5),
				  40-10-44.8(a)(2),
				  41-10-44.8(b),
				  40-18-57.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-78 - CREDIT FOR TAX WITHHELD › Section 810-3-78-.01 - Credit For Tax Withheld

Current through Register Vol. 42, No. 9, June 28, 2024
(1)
(a) An employee or other payee from whose
			 wages or other remuneration income tax is withheld, and/or a recipient of
			 proceeds from a wager from which income tax was withheld pursuant to §
									40-18-91,
Code of Ala. 1975
, is allowed a credit for the amount
			 withheld on his or her income tax return for the tax year during which the tax
			 was withheld.
(b) An employee from
			 whose wages a job development fee (JDF) is withheld pursuant to §
									41-10-44.8 b.,
Code of Ala. 1975
, is allowed a credit for the
			 amount withheld on his or her income tax return for the tax year during which
			 the JDF was withheld.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-79 - OVERPAYMENT OF TAX › Section 810-3-79-.01 - Overpayment Of Tax

Current through Register Vol. 42, No. 9, June 28, 2024
(1)
(a) If the income tax return of a taxpayer
			 shows an overpayment of tax because of withholding from his wages and/or
			 payments of declarations of estimated tax, the overpayment will first be
			 applied against any income tax of earlier years owed by the taxpayer. The
			 balance, at the election of the taxpayer, will be refunded to him or credited
			 as a first payment on his declaration of estimated tax for the following year.
			 See Reg.
			 810-3-82-.01 as to the
			 irrevocability of the election.
(b)
			 Refunds of less than one dollar are made only on written request of the
			 taxpayer who has made the overpayment. Filing a declaration of estimated tax
			 for the following year together with a request or election that the overpayment
			 be credited thereon will be treated as such a written request. Alternatively, a
			 refund claim may be filed on Form 40-X.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-80 - PENALTIES › Section 810-3-80-.01 - Penalties (Repealed)

Current through Register Vol. 42, No. 9, June 28, 2024
Author:
Ewell Berry
Statutory Authority:
Code of Ala.
				  1975
, §§ 40-2 A-7(a)(5),
				  40-18-80,
				  40-29-70,
				  40-29-72,
				  40-29-73.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-80 - PENALTIES › Section 810-3-80-.02 - Retention Of Payroll Records

Current through Register Vol. 42, No. 9, June 28, 2024
(Repealed 6/7/00)
Authors:
Ecta Spicer, Ewell Berry, John H.
				Burgess
Statutory Authority
:
Code of Ala.
				1975,
§§
								40-2A-7(a)(5),
				40-18-80,
				Act 88-952.
History
: Adopted September 30, 1982.
Amended
June 17, 1988; amended February 8, 1989, filed March 20,
				1989.
Repealed:
Filed May 3, 2000; effective June 7,
				2000.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-81 - OPTIONAL SHORT FORM RETURNS (REPEALED) › Section 810-3-81-.01 - Optional Short Form Returns (Repealed)

Current through Register Vol. 42, No. 9, June 28, 2024
Authors :
Ewell Berry, Ann Fondren, John H.
				  Burgess
Statutory Authority :
Code of Ala.
				  1975
, §
										40-18-81.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-82 - DECLARATION OF ESTIMATED TAX › Section 810-3-82-.02

Current through Register Vol. 42, No. 9, June 28, 2024
Author:
John H. Burgess
Statutory Authority:
Code of Ala.
				  1975
, §
										40-18-82.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-83 - PAYMENT OF ESTIMATED TAX (REPEALED) › Section 810-3-83-.01

Current through Register Vol. 42, No. 9, June 28, 2024
Authors:
Ecta B. Spicer, Ewell Berry, John H.
				  Burgess
Statutory Authority:
Code of Ala.
				  1975,
§
										40-18-83.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-83 - PAYMENT OF ESTIMATED TAX (REPEALED) › Section 810-3-83-.02

Current through Register Vol. 42, No. 9, June 28, 2024
Authors:
George E. Mingledorff, III, John H.
				  Burgess
Statutory Authority
:
Code of Ala.
				  1975
, §
										40-18-83.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-84 - EMPLOYEE BUSINESS EXPENSE › Section 810-3-84-.01 - Employee Business Expense

Current through Register Vol. 42, No. 9, June 28, 2024
(1)
			 Expenses paid or incurred by the taxpayer in connection with performance of
			 services as an employee and reimbursed by the employer are allowable as an
			 adjustment in computing adjusted gross income.
(2) Expenses paid or incurred by the taxpayer
			 in connection with performance of services as an employee and not reimbursed by
			 the employer are allowable as a miscellaneous deduction, if the taxpayer
			 itemizes deductions, and are subject to the two-percent floor on miscellaneous
			 itemized deductions.
Authors:
Mary L. Gifford
Statutory Authority:
Act 90-583.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-100 - SETOFF DEBT COLLECTION › Section 810-3-100-.01 - Collection Of Debts By Setoff Of Income Tax Refund

Current through Register Vol. 42, No. 9, June 28, 2024
Act 81-696 (now codified at §
								40-18-100,
et
seq
.) provides that debts
				owed the Alabama Commission on Higher Education and the Alabama Department of
				Human Services (formerly the Alabama Department of Pensions and Security) may
				be collected by setoff of an income tax refund of the debtor.
Authors
: Carmen Mills, Anne Simms and John H.
				Burgess.
Statutory Authority
:
Code of Ala.
				1975
, §
								40-18-100.
History
: Adopted September 30, 1982. Amended June
				17, 1988; filed July 27, 1988.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-120 - ACTIVE SOLAR ENERGY TAX CREDITS › Section 810-3-120-.01 - Procedure For Claiming Credit

Current through Register Vol. 42, No. 9, June 28, 2024
(1) In order to establish eligibility for the
			 solar energy credit, the taxpayer shall submit a completed Application for
			 Certificate of Eligibility, Schedule SCR-2, to
Application Review Officer
Alabama Solar Energy Center/UAH
Huntsville, Alabama 35899
Submit the application as soon as practical after the solar
				energy system has been installed.
(2) The approved Schedule SCR-2 and a
			 completed Schedule SCR must be attached to the Alabama income tax return when
			 filed. Schedule SCR Instructions provide detailed guidelines for determination
			 of eligibility for credit.
(3)
			 There is no allowable credit (except for allowed carryovers from prior years)
			 for active solar energy systems for tax years beginning after December 31,
			 1985.
Authors
: Anne Simms, Carmen Mills and John H.
				Burgess.
Statutory Authority
:
Code of Ala.
				1975
, §
									40-18-120.
History
: Adopted September 30, 1982. Amended June
				17, 1988; filed July 27, 1988.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-121 - PASSIVE SOLAR ENERGY TAX CREDITS › Section 810-3-121-.01 - Procedure For Claiming Credit

Current through Register Vol. 42, No. 9, June 28, 2024
(1) In order to establish eligibility for the
			 solar energy credit the taxpayer shall submit a completed Application for
			 Certificate of Eligibility, Schedule SCR-2, to
Application Review Officer
Alabama Solar Energy Center/UAH
Huntsville, Alabama 35899
Submit the application as soon as practical after the solar
				energy system has been installed.
(2) The approved Schedule SCR-2 and a
			 completed Schedule SCR must be attached to your Alabama income tax return when
			 filed. Schedule SCR Instructions provide detailed guidelines for determination
			 of eligibility for credit.
(3)
			 There is no allowable credit (except for allowed carryovers from prior years)
			 for passive solar energy systems for tax years beginning after December 31,
			 1985.
Authors
: Carmen Mills, Anne Simms and John H.
				Burgess.
Statutory Authority
:
Code of Ala.
				1975
, §
									40-18-121.
History
: Adopted September 30, 1982. Amended June
				17, 1988; filed July 27, 1988.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-135 - INCOME TAX CREDITS › Section 810-3-135-.01 - Income Tax Credit For Qualifying Workplace Education Costs In The Basic Skills Education Program

Current through Register Vol. 42, No. 9, June 28, 2024
(1) SCOPE. This regulation sets forth
			 definitions of terms used in regulation
			 810-3-135-.02 which establishes the computation and limitation of the credit and procedures
			 to be followed.
(2) DEFINITIONS.
			 The following terms have the meaning ascribed to them for the purposes of
			 implementing
Code of Ala. 1975
, §
								40-18-135 and associated regulations, unless the context clearly indicates otherwise.
(a) Approved basic skills education program.
			 A basic skills education program that has received written approval from the
			 Alabama Department of Education pursuant to this article.
(b) Basic skills education program. An
			 approved employer provided or employer sponsored education program that
			 enhances basic skills of employees up to and including the twelfth grade
			 functional level.
(c) Costs of
			 education. Direct instructional expenses incurred for or relating to
			 instructors, materials, or equipment used in the qualifying program, or for
			 supplies, textbooks, or salaries, including compensation paid to employees
			 while participating in an approval basic skills education program.
(d) Employee. An individual resident of
			 Alabama who is employed for at least 24 hours per week by the employer seeking
			 the income tax credit and who has been continuously employed for at least 16
			 weeks.
(e) Employer. A resident or
			 nonresident individual or corporate business, including but not limited to, a
			 subchapter "S" corporation, that is subject to the state income tax.
(f) Employer provided. An approved basic
			 skills education program offered by the employer on the premises of the
			 employer or on premises approved by the Alabama Department of
			 Education.
(g) Employer sponsored.
			 A contractural arrangement with a school, college, university, adult basic
			 skills education program, or other approved provider that offers an approved
			 basic skills education program that is paid for by the employer.
Authors:
Jeff Taylor, V. R. Frost
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-135 - INCOME TAX CREDITS › Section 810-3-135-.02 - Reporting And Calculating Credit For Approval Basic Skills Education Program

Current through Register Vol. 42, No. 9, June 28, 2024
(1)
			 SCOPE. This regulation applies to the computation and limitation of the credit
			 available in the Basic Skills Education Program.
(2) DEFINITIONS. Terms defined in regulation
			 810-3-135-.01 are incorporated herein by reference for purposes of this regulation, unless
			 the context clearly indicates otherwise.
(3) PROCEDURE. For tax periods beginning on
			 or after January 1, 1993, an income tax credit equal to 20 percent of the
			 actual costs of education of a qualified employee shall be provided to an
			 employer who provides or sponsors a basic skills education program approved by
			 and in compliance with the rules and regulations established by the Alabama
			 Department of Education.
(4) At the
			 time of filing any tax return with the Department in which the education credit
			 is claimed, the person signing the tax return shall file with the Department a
			 statement indicating:
(a) The actual costs of
			 education of qualified employee(s), and,
(b) A copy of the current year's "Workplace
			 Education Tax Credit Certificate" and Certificate number issued by the Alabama
			 Department of Education.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-135 - INCOME TAX CREDITS › Section 810-3-135-.03 - Corporate Income Tax Credit For Alabama Coal Producer

Current through Register Vol. 42, No. 9, June 28, 2024
(1) SCOPE. The department promulgates these
			 rules to implement Act 95-239 and clarify the procedures used by a corporation
			 to establish:
(a) the definitions of terms
			 and procedures used to calculate the credit; and,
(b) the determination of when the credit is
			 available; and,
(c) the calculation
			 of the annual credit available; and,
(d) the information required to be reported
			 to the department in order to utilize the credit.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-136 - HISTORICAL REHABILITATION TAX CREDIT › Section 810-3-136-.03 - Historic Rehabilitation Tax Credit Of 2013 - Improperly Obtained Tax Credits And Recapture Of Tax Credits

Current through Register Vol. 42, No. 9, June 28, 2024
(1) This rule sets forth guidelines and
			 procedures to be used by the Department of Revenue in the administration of the
			 Historic Rehabilitation Tax Credit of 2013, as codified in Article 1 of Chapter
			 9F of Title 40,
Code of Ala. 1975
, which provides for
			 a tax credit under Chapters 16 and 18 of Title 40 to Alabama taxpayers for the
			 rehabilitation of certain historic and certain non-historic buildings in
			 Alabama.
(2) The Department shall
			 have the right to audit and assess 100% of any credit improperly obtained by
			 the Owner. Any liability resulting therefrom shall apply against the Owner
			 initially awarded the Tax Credit Certificate and not any subsequent Transferee
			 of the tax credit or person to whom tax credits have been passed through
			 pursuant to Section
			 40-9F-4(d).
(3) Recapture of the credit shall apply
			 against the taxpayer who utilizes the credit. The Owner shall report any
			 recapture event to the Department, the Commission and the taxpayer. In the case
			 of a Project which meets the requirements of, and a taxpayer in fact claims,
			 the rehabilitation credit associated with the Project under Title 26, Section
			 47 of the Internal Revenue Code (the "Federal Historic Credit"), recapture and
			 any related adjustments of basis due to recapture shall occur when and if
			 recapture occurs with respect to the Federal Historic Credit and the amount of
			 the recapture of the credit, and any required basis adjustments shall be
			 proportionate to the recapture of the Federal Historic Credit. In all other
			 cases, recapture occurs when the Project fails to meet the definitions of a
			 Certified Historic Structure or a Certified Historic Residential Structure
			 pursuant to Section
			 40-9F-2,
			 and recapture and any related adjustments of basis due to recapture shall be
			 governed by principles which correspond to those applicable to the Federal
			 Historic Credit under Title 26 Section 50 of the Internal Revenue
			 Code.
Authors:
Kelly Graham, Neal Hearn, Cameran
				  Clark
Statutory Authority:
Code of Ala.
				  1975
, §§
										40-2A-7(a)(5);
				  Title 40, Chapter 9F, Article 1.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-137 - HISTORICAL REHABILITATION TAX CREDIT OF 2017 › Section 810-3-137-.03 - Historic Rehabilitation Tax Credit Of 2017 - Improperly Obtained Historic Rehabilitation Tax Credits And Recapture Of Historic Rehabilitation Tax Credits

Current through Register Vol. 42, No. 9, June 28, 2024
(1)
			 This rule sets forth guidelines and procedures to be used by the Department of
			 Revenue in the administration of the Historic Rehabilitation Tax Credit of
			 2017, as codified in Article 2 of Chapter 9F of Title 40,
Code of
			 Ala. 1975
, which provides for a tax credit under Chapter 18 of
			 Title 40 to Alabama taxpayers for the rehabilitation of certain historic and
			 certain non-historic buildings in Alabama.
(2) The Department shall have the right to
			 audit and assess 100% of any credit improperly obtained by the Owner. Any
			 liability resulting therefrom shall apply against the Owner initially awarded
			 the Tax Credit Certificate and not any subsequent Transferee of the tax credit
			 pursuant to Section 40-9F-X.
(3)
			 Recapture of the credit shall apply against the taxpayer who utilizes the
			 credit. The Owner shall report any recapture event to the Department, the
			 Commission and the taxpayer. In the case of a Project which meets the
			 requirements of, and a taxpayer in fact claims, the rehabilitation credit
			 associated with the Project under Title 26, Section 47 of the Internal Revenue
			 Code (the "Federal Historic Credit"), recapture and any related adjustments of
			 basis due to recapture shall occur when and if recapture occurs with respect to
			 the Federal Historic Credit and the amount of the recapture of the credit, and
			 any required basis adjustments shall be proportionate to the recapture of the
			 Federal Historic Credit. In all other cases, recapture occurs when the Project
			 fails to meet the definitions of a Certified Historic Structure or a Certified
			 Historic Residential Structure pursuant to Section 40-9F-X, and recapture and
			 any related adjustments of basis due to recapture shall be governed by
			 principles which correspond to those applicable to the Federal Historic Credit
			 under Title 26 Section 50 of the Internal Revenue Code.
Author:
Kelly Graham
Statutory Authority:
Code of Ala.
				  1975
, §§
										40-2A-7(a)(5);
				  Title 40, Chapter 9F, Article 2.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-160 - REQUIREMENTS FOR QUALIFICATION AS AN ALABAMA S CORPORATION › Section 810-3-160-.01 - Qualification Requirements For S Corporations

Current through Register Vol. 42, No. 9, June 28, 2024
(1)
(a) For
			 tax years beginning before January 1, 1990, to qualify as an Alabama S
			 corporation, the criteria to be met for each year of the election are -
1. a valid election must be in effect under
			 I.R.C. § 1362, and
2. all
			 nonresident shareholders who hold any stock interest in the electing
			 corporation during any part of the tax year of the corporation must execute a
			 consent agreement to report their share of the Alabama S corporation Alabama
			 income to this state and pay any tax due thereon.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-161 - COMPUTING TAXABLE INCOME OF AN ALABAMA S CORPORATION › Section 810-3-161-.01 - Computation Of Taxable Income

Current through Register Vol. 42, No. 9, June 28, 2024
(1) Nonseparately Stated Income.
			 Nonseparately stated income for Alabama S corporations will be computed in the
			 same manner as for individuals, except for those deductions and exemptions
			 which are not applicable to nonindividuals, such as:
(a) The personal exemption and credit for
			 dependents allowed by §
									40-18-19,
Code of Ala. 1975
,
(b) Charitable contributions allowed by
			 §
									40-18-15,
(c) The net operating loss deduction allowed
			 by §
									40-18-15.2,
(d) Medical expenses allowed by §
									40-18-15,
(e) Moving expenses allowed by §
									40-18-15,
(f) Alimony allowed by §
									40-18-15,
(g) Contributions to an Individual Retirement
			 Account (IRA) allowed by §
									40-18-15,
(h) The deduction for certain expenses of
			 producing income and determining taxes, allowed by §
									40-18-15,
			 and
(i) Depletion on oil and gas
			 wells allowed by §
									40-18-15.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-161 - COMPUTING TAXABLE INCOME OF AN ALABAMA S CORPORATION › Section 810-3-161-.02 - LIFO Recapture

Current through Register Vol. 42, No. 9, June 28, 2024
(1)
			 Definitions. For purposes of this regulation, the following definitions shall
			 apply:
(a) "LIFO recapture amount" means the
			 excess of the inventory's value using the FIFO method over its value using the
			 LIFO method.
1. For purposes of subparagraph
			 (a), the inventory value means the aggregate amount of the inventory assets
			 determined as of the end of the last tax year before the corporation converts
			 to S status.
2. For purposes of
			 subparagraph (a), the FIFO amount shall be determined by using the retail
			 method if the corporation uses the retail method to determine the LIFO amount.
			 If the corporation does not use the retail method to determine the LIFO amount,
			 then the lower of cost or market method must be used to determine the FIFO
			 amount.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-162 - INCOME TO BE REPORTED BY SHAREHOLDERS › Section 810-3-162-.01 - Income To Be Reported By Shareholders

Current through Register Vol. 42, No. 9, June 28, 2024
(1)
(a) For
			 taxpayers who are shareholders of an Alabama S corporation with a tax year
			 which began before January 1, 1990, each shareholder of an Alabama S
			 corporation shall include in his individual Alabama income tax return each year
			 his pro rata share of the:
1. separately
			 stated items of income, loss, deduction or credit attributed to Alabama by the
			 Alabama S corporation for the corporation's taxable year which ends with or
			 during the individual's tax year; and
2. nonseparately stated items of income,
			 loss, deduction or credit attributed to Alabama by the Alabama S corporation
			 for the corporation's taxable year which ends with or during the individual's
			 tax year.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-163 - TAXATION OF TRANSACTIONS INDIVIDUALS RELATED TO SHAREHOLDERS OF AN ALABAMA S CORPORATION › Section 810-3-163-.01 - Transactions Involving Related Individuals

Current through Register Vol. 42, No. 9, June 28, 2024
(1) A related individual (as defined in
			 subsection (2) below) who furnishes capital and/or provides services for an
			 Alabama S corporation without receiving reasonable compensation for the capital
			 and/or services, will be deemed to have received income from the Alabama S
			 corporation equal to the value of reasonable compensation less the value of any
			 compensation actually paid. A deduction will be allowed to the Alabama S
			 corporation in an amount equal to the amount of income the related individual
			 is deemed to have received from the corporation. No deduction is allowable to
			 the related individual.
(2)
			 Definitons. For the purposes of this section, the following definitions apply:
(a) Related Individual - Any person (or
			 persons) who is the spouse, ancestor, or lineal descendent (or any trust for
			 the primary benefit of such persons) related to a shareholder (or shareholders)
			 of an Alabama S corporation or to any beneficiary (or beneficiaries) of a trust
			 (or trusts) that is a shareholder of an Alabama S corporation.
(b) Reasonable Compensation - The fair market
			 value of capital furnished, or the fair market value of property, services,
			 wages, fees or other compensation for services performed. The fair market value
			 of capital furnished will be presumed to be equal to the rate of interest on
			 delinquent taxes provided by §
									40-1-44,
Code of Ala. 1975
.
Author:
Ed Cutter, CPA
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-164 - COMPUTATION OF ADJUSTMENTS TO A SHAREHOLDER'S BASIS IN THE STOCK AND INDEBTEDNESS OF AN ALABAMA S CORPORATION › Section 810-3-164-.01 - Adjustments To Basis Of Stock And Indebtedness

Current through Register Vol. 42, No. 9, June 28, 2024
(1) Basis Adjustments - Shareholder's Stock
			 in an Alabama S Corporation.
(a) The
			 shareholder's basis in the Alabama S Corporation stock is increased by:
1. Any separately stated income attributed to
			 Alabama as computed under §
										40-18-162(a)(1),
Code of Ala. 1975
, to the extent included in the
			 shareholder's return, as amended or adjusted.
2. Any nonseparately stated income attributed
			 to Alabama as computed under §
										40-18-162(a)(2),
			 to the extent included in the shareholder's return, as amended or
			 adjusted.
3. Any oil and gas
			 depletion deduction attributed to Alabama in excess of the basis of the wells
			 being depleted.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-165 - TAXATION OF ACTUAL DISTRIBUTIONS BY AN ALABAMA S CORPORATION › Section 810-3-165-.01 - Taxation Of Actual Distributions By An Alabama S Corporation

Current through Register Vol. 42, No. 9, June 28, 2024
(1) Treatment of
			 Property Distributions. An actual distribution of property (not the prorata
			 share taken into account under §
								40-18-162,
Code of Ala. 1975
) by an Alabama S Corporation in
			 accordance with the provisions of §
								40-18-36,
			 will be treated in the following manner:
(a)
			 If the Alabama S corporation has no accumulated earnings and profits (from any
			 year in which an Alabama S election was not in effect or from a merger), the
			 distribution will not be included in the shareholder's gross income to the
			 extent the distribution does not exceed the adjusted basis of the stock.
1. To the extent the distribution exceeds the
			 shareholder's adjusted basis in the stock of the Alabama S corporation, the
			 excess will be treated as a gain from the sale or exchange of
			 property.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-166 - COMPUTATION OF THE ALABAMA ACCUMULATED ADJUSTMENTS ACCOUNT › Section 810-3-166-.01 - Alabama Accumulated Adjustments Account 810-3-166

Current through Register Vol. 42, No. 9, June 28, 2024
01Alabama Accumulated Adjustments Account.
(1) The Alabama Accumulated Adjustments
			 Account.
(a) The Alabama Accumulated
			 Adjustments Account (AAAA) is an account maintained for an Alabama S
			 corporation which details the amounts of earnings, profits, losses, gains and
			 deductions which have been previously included by the individual shareholders
			 on their respective income tax returns. It is used to compute the tax effect of
			 distributions made by Alabama S corporations which have accumulated earnings
			 and profits.
(b) For tax years
			 beginning after December 31, 1990, and before January 1, 1997, the adjustments
			 to the Alabama Accumulated Adjustments Account included:
1. The amounts of earnings, profits, losses,
			 gains and deductions attributed to Alabama and includible by the nonresident
			 shareholders on their respective returns, and
2. The entire amounts of earnings, profits,
			 losses, gains and deductions includible by the Alabama resident shareholders on
			 their respective returns.
(c) For tax years beginning on or after
			 January 1, 1997, the adjustments to the Alabama Accumulated Adjustments Account
			 include the entire earnings, profits, losses, gains and deductions of the S
			 corporation to the extent includible by the individual shareholders on their
			 respective returns.
1. If an item of income is
			 subject to allocation and apportionment, the adjustment is an amount that is in
			 proportion to the amount of the income reportable on the shareholder's return
			 bears to the amount of income allocated and apportioned to Alabama and required
			 to be included in the shareholder's return.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-167 - APPLICABILITY OF INCOME TAX RULES AND REGULATIONS TO ALABAMA S CORPORATIONS AND SHAREHOLDERS › Section 810-3-167-.01 - Applicability Of Income Tax Rules And Regulations. (REPEALED)

Current through Register Vol. 42, No. 9, June 28, 2024
Authors
: Verlon Frost, Catherine McCary
Statutory Authority
:
Code of Ala.
				  1975
, §§
										40-2A-7(a)(5),
				  40-18-57,
				  40-18-167.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-168 - NET OPERATING LOSS DEDUCTION NOT APPLICABLE TO AN ALABAMA S CORPORATION › Section 810-3-168-.01 - Net Operating Loss Deduction For S Corporations

Current through Register Vol. 42, No. 9, June 28, 2024
(1) No net operating loss carryback or
			 carryforward deduction is allowable for an Alabama S corporation. See Rule
			 810-3-161-.01 and 810-3-35.1-.01.
(2) No
			 carryforward and no carryback shall arise at the corporate level for a taxable
			 year for which a corporation is an Alabama S corporation.
(3) The taxable year that a corporation is an
			 Alabama S corporation may be considered in determining the number of taxable
			 years which a net operating loss item can be carried back or carried
			 forward.
(4) See also Rule
			 810-3-174-.02,
			 Built-in Gains Tax.
Authors
: Ed Cutter, CPA, Ann Winborne, CPA
Statutory Authority
:
Code of Ala.
				1975
, §§
									40-2A-7(a)(5),
				40-18-168.
History
: Adopted November 13, 1985.
Amended:
Filed March 31, 2000, effective May 5,
				2000.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-169 - ADJUSTMENTS TO THE EARNINGS AND PROFITS ACCOUNT OF AN ALABAMA S CORPORATION › Section 810-3-169-.01 - Adjustments To Earnings And Profits

Current through Register Vol. 42, No. 9, June 28, 2024
(1) Except as provided below, no adjustments
			 will be made to the earnings and profits account of an Alabama S corporation.
			 An Alabama S corporation will have no earnings and profits accruing during any
			 period in which such an election is in effect.
(2) In the case of a redemption, liquidation,
			 or reorganization (including a divisive reorganization) of an Alabama S
			 corporation, the accumulated earnings and profits account (if any) shall be
			 increased or decreased accordingly. For example, if 50% of the fair market
			 value of the assets of the Alabama S corporation are transferred to a new
			 corporation, then 50% of the Alabama accumulated earnings and profits account
			 will also be transferred to the new corporation. In the case of a merger, the
			 accumulated earnings and profits will be increased or decreased by the
			 accumulated earnings and profits of the merged corporation.
(3) If an Alabama S corporation makes a
			 distribution which is in excess of the Alabama Accumulated Adjustments Account,
			 but not in excess of the accumulated earnings and profits account, the earnings
			 and profits account will be decreased by the amount of the excess distribution.
			 See Rule
			 810-3-165-.01.
(4) If a corporation makes a distribution of
			 money with respect to its stock during a post-termination transition period,
			 the basis of the stock will be reduced by the amount of the distribution which
			 does not exceed the Alabama Accumulated Adjustments Account. An Alabama S
			 corporation may elect to have the preceding sentence of this paragraph not
			 apply to all distributions made during a post-termination transaction period
			 described in §
								40-18-172,
Code of Ala. 1975
, but only if all the shareholders of
			 the Alabama S corporation to whom distributions are made by the Alabama S
			 corporation during such post-termination transition period consent to such
			 election.
Author
: Jeffery Taylor
Statutory Authority
:
Code of Ala.
				1975
, §
									40-18-169.
History
: Filed November 20, 1985.
Amended
filed May 15, 1992.
Amended:
Filed March 31,
				2000; effective May 5, 2000.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-170 - [Repealed] › Section 810-3-170-.01 - Two-Percent Rule

Current through Register Vol. 42, No. 9, June 28, 2024
(Repealed 5/5/00)
Author:
John H. Burgess
Statutory Authority
:
Code of Ala.
				  1975
, §
										40-18-170.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-171 - COMPUTATION OF EACH SHAREHOLDER'S SHARE OF THE INCOME, LOSS, DEDUCTION AND CREDIT FROM AN ALABAMA S CORPORATION › Section 810-3-171-.01 - Determination Of Shareholder's Pro Rata Share

Current through Register Vol. 42, No. 9, June 28, 2024
(1) The "post-termination transition period"
			 is:
(a) The period that begins on the day
			 following the last day of the last S year, and ending on the later of:
1. One year from the last day of the S year,
			 or
2. The due date, including
			 extensions, for filing the return for the last S year.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-172 - COMPUTATION OF THE TRANSITION PERIOD AFTER TERMINATION OF STATUS AS AN ALABAMA S CORPORATION › Section 810-3-172-.01 - Post-Termination Transition Period

Current through Register Vol. 42, No. 9, June 28, 2024
(1) The "post-termination transition period"
			 is:
(a) The period that begins on the day
			 following the last day of the last S year, and ending on the later of:
1. One year from the last day of the S year,
			 or
2. The due date, including
			 extensions, for filing the return for the last S year.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-173 - APPLICATION OF INTERNAL REVENUE SERVICE RULES AND REGULATIONS TO ALABAMA S CORPORATIONS AND THEIR SHAREHOLDERS › Section 810-3-173-.01 - Applicability Of Federal Rules And Regulations

Current through Register Vol. 42, No. 9, June 28, 2024
The Alabama law regarding S corporations is substantially
				similar to federal law regarding S corporations. Therefore, rules and
				regulations of the Internal Revenue Service interpreting federal S corporation
				law will be given due consideration in interpreting Alabama S corporation laws
				to the extent the federal llaw is not inconsistent with Alabama law. See also
				Rule 810-3-1.1 -.01, Operating Rules.
Author
: Ed Cutter, CPA
Statutory Authority
:
Code of Ala.
				1975
, §§
								40-2A-7(a)(5),
				40-18-57,
				40-18-173.
History
: Adopted November 13, 1985.
Amended:
Filed March 31, 2000; effective May 5,
				2000.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-174 - TAX IMPOSED ON CERTAIN BUILT-IN GAINS › Section 810-3-174-.01 - Effective Date

Current through Register Vol. 42, No. 9, June 28, 2024
(Repealed 5/5/00)
Author:
John H. Burgess, Income Tax
				Division
Statutory Authority:
Code of Ala.
				  1975
, §15, Act 84-756.