Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-29 - FIDUCIARY RETURNS › Section 810-3-29-.03 - Requirements For The Alabama Electronic Fiduciary Income 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) Fiduciary Income Tax - The tax levied by
			 Section
			 40-18-29,
Code of Ala. 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 Alabama
			 Department of Revenue specifications and/or (b) transmitting the electronic
			 portion of returns directly to the IRS or the Alabama Department of Revenue. 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 Alabama Department of
			 Revenue, an ERO must be approved by the Internal Revenue Service to qualify for
			 this program.
(g) AL8453-FDT - A
			 document used to satisfy signature requirements for electronically filed
			 fiduciary income tax returns submitted to the State of Alabama by an Electronic
			 Return Originator (ERO).
(h)
			 Accepted return - An Alabama Fiduciary electronic income tax return that has
			 successfully completed the schema and business rules validation process and the
			 Department has sent an acknowledgement with an Acceptance Status of "accepted"
			 for MeF (Modernized e-File) returns.
(i) Rejected Return - An Alabama Fiduciary
			 electronic income tax return that was received but failed to complete the
			 schema and or business rule validation process and the Department has sent an
			 acknowledgement with an Acceptance Status of "Rejected" for MeF
			 returns.
(j) Transmission
			 Perfection Period - A ten (10) calendar day period from the date of the first
			 transmission of a Fiduciary MeF (Modernized E-file) income tax return that a
			 taxpayer has to correct and resubmit a rejected electronically transmitted
			 Fiduciary MeF income 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 - An electronic
			 return that is received and accepted by the due date or within an extension of
			 time for filing the fiduciary return according to the same manner as allowed by
			 federal law. 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 Alabama Department of Revenue. 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 Alabama Department of
			 Revenue 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 fiduciary income tax return - Any return that is required to be filed
			 with respect to the tax imposed as defined by Section
			 40-18-2,
			 Code of Alabama 1975.
(q)
			 Acceptable fiduciary income tax return - Any original fiduciary tax return that
			 is authorized by the Alabama Department of Revenue 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 Alabama Department of Revenue's e-file program.
(u) Business Acceptance or Assurance Testing
			 (BATS) -Required testing for software developers that participate in the
			 Alabama Department of Revenue's Business e-file program. This testing is used
			 to assess their software and transmission capability with the department prior
			 to live processing.