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-.12 - Requirements For The Alabama Electronic Business Privilege Tax Return

Current through Register Vol. 42, No. 9, June 28, 2024
(1) SCOPE - This
			 rule defines certain terms used in connection with the Alabama Business
			 Modernized E-File Program.
(2)
			 Definitions:
(a) XML Schema - A single file
			 or collection of files that describe the structure of an XML instance document
			 along with rules for data content and semantics such as what fields an element
			 can contain, which sub elements it can contain and how many items can be
			 present. It can also describe the type and values that can be placed into each
			 element or attribute.
(b) XML
			 instance document - The actual return data defined by the XML Schema. This
			 document is validated against the XML schema to ensure the contents and
			 structures are correct.
(c)
			 Business Rules - A document that defines the criteria that needs to be met for
			 an electronic return to be accepted based on the filing instructions and system
			 requirements for a specific tax return.
(d) Business Privilege Tax - The tax levied
			 by Section
			 40-14A-22,
			 Code of Alabama 1975.
(e) Software
			 Developer - An authorized IRS Provider that develops software for the purposes
			 of (a) formatting the electronic portions of returns according to IRS
			 Publication 4164 or Department specifications and/or (b) transmitting the
			 electronic portion of returns directly to the IRS or the Department. A Software
			 Developer may also sell its software.
(f) Electronic Return Originator (ERO) - A
			 firm, organization or individual who is an authorized IRS e-file provider that
			 originates the electronic submission of returns. Because the electronic filing
			 process is a joint program between the IRS and the Department, an ERO must be
			 approved by the Internal Revenue Service to qualify for this program.
(g) AL8453-B - A document used to satisfy
			 signature requirements for electronically filed business privilege tax returns
			 submitted to the State of Alabama by an Electronic Return Originator
			 (ERO).
(h) Accepted return - An
			 Alabama electronic Business Privilege Tax return that has successfully
			 completed the schema and business rules validation process and the Department
			 has sent an acknowledgement with an Acceptance Status of "Accepted" for MeF
			 (Modernized e-File) returns.
(i)
			 Rejected Return - An Alabama electronic Business Privilege Tax return that was
			 received but failed to complete the schema and or business rule validation
			 process and the Department has sent an acknowledgement with an Acceptance
			 Status of "Rejected" for MeF returns.
(j) Transmission Perfection Period - A ten
			 (10) calendar day period from the date of the first transmission of an MeF
			 (Modernized E-file) Business Privilege Tax return that a taxpayer has to
			 correct and resubmit a rejected electronically transmitted MeF Business
			 Privilege Tax return that was originally timely filed.
(k) Electronic Postmark - A record of the
			 date and time (in a particular time zone) that an authorized electronic return
			 transmitter receives the transmission of a taxpayer's electronically filed
			 document on its host system. However, if the taxpayer and the electronic return
			 transmitter are located in different time zones, it is the taxpayer's time zone
			 that controls the timeliness of the electronically filed document.
(l) Timely Filed return - For all entities,
			 excluding all members of a Financial Institution Group, an electronic return
			 that is received and accepted by the due date or within an extension of time
			 for filing the Business Privilege Tax Return according to the same manner as
			 allowed by federal law. For all members of a Financial Institution Group, an
			 electronic return that is received and accepted no later than the corresponding
			 Alabama Financial Institution Excise Tax return due date, including any
			 extensions allowed. It also includes a timely filed rejected return that is
			 resubmitted and accepted during the transmission perfection period.
(m) Electronic Return Transmitter - An
			 authorized IRS e-file Provider that transmits the electronic portion of a
			 return directly to the IRS or the Department. An entity that provides a "bump
			 up" service is also a Transmitter. A bump up service provider increases the
			 transmission rate or line speed of formatted or reformatted information that it
			 is sending to the IRS.
(n) Standard
			 Letter of Intent (LOI) - A form which must be completed to request approval
			 from the Department to provide tax preparation software for electronic forms
			 submissions. By completing this form, the software developer agrees to comply
			 with all national security summit standards and requirements in addition to the
			 specific Alabama requirements included in the LOI.
(o) Submission Error Rate - A Software
			 Developer's percentage of business rule rejections compared to the total amount
			 of returns submitted. This will be calculated by taking the total amount of
			 business rule rejections per form type for a particular form year divided by
			 the total amount of returns transmitted for that same form type with regards to
			 the form year in question.
(p)
			 Original Business Privilege Tax Return - Any return that is required to be
			 filed with respect to the tax imposed as defined by Section
			 40-14A-22,
Code of Alabama 1975
.
(q) Acceptable Business Privilege Tax return
			 - Any original Business Privilege Tax return that is authorized by the
			 Department to be filed solely using electronic technology as defined in Section
			 40-30-3(2),
Code of Alabama 1975
.
(r) Tax Preparation Software - Any computer
			 software program intended for accounting, tax preparation and or tax
			 compliance.
(s) Electronic
			 Signature Pad - An electronic device with a touch sensitive LCD screen which
			 allows users to acquire and register a signature or any other physical
			 signature capture device that captures and converts a signature into an
			 electronic format.
(t) Suitability
			 - A check conducted on all software developers including rebranded and white
			 labeled products, when an application is initially processed and on a regular
			 basis thereafter. The suitability check may include background and personal tax
			 compliance checks conducted by the department to ensure the software developers
			 are eligible for participation in the Department's e-file program.
(u) Business Acceptance or Assurance Testing
			 (BATS) -Required testing for software developers that participate in the
			 Department's Business e-file program. This testing is used to assess their
			 software and transmission capability with the department prior to live
			 processing.