Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-28 - PARTNERSHIP RETURNS › Section 810-3-28-.01 - Partnership Returns

Current through Register Vol. 42, No. 9, June 28, 2024
(1)
(a) All partnerships having "substantial
			 nexus" from property owned or business conducted in this state shall file the
			 Alabama Form 65 on or before the due date, including extension. All single
			 member limited liability entities having "substantial nexus" from property
			 owned or business conducted in this state shall file the appropriate Alabama
			 income tax return. The appropriate income tax return will be determined based
			 on the entity's classification for federal purposes, found in IRC Section 7701.
			 Returns for both partnerships and single member limited liability entities,
			 whether filing as a separate entity or as a disregarded entity, as a division
			 of its owner, are required to be filed on or before the date the taxpayer's
			 corresponding federal tax return is due. If no federal tax return is required,
			 the due date is the date in which the taxpayer would be required to file if the
			 federal return was required.
(b) A
			 business has "substantial nexus" in Alabama when factor presence thresholds are
			 met or exceed the thresholds established pursuant to Section 40-18-31.2, Code
			 of Alabama 1975, and rules promulgated thereunder.
(c) Any extension of time to file an income
			 tax return allowed for by federal income tax purposes will be recognized for
			 Alabama purposes.
1. A taxpayer is not
			 required to file a separate extension to extend the filing deadline in
			 Alabama.
2. Taxpayers must meet all
			 federal requirements for additional extensions.
(d) An Alabama Schedule K-l must be prepared
			 for each person who held an interest in the subchapter K entity or single
			 member limited liability company during the taxable year showing each partner's
			 or member's name, address, social security or federal employers identification
			 number, distributive share of the income (or loss) of the partnership, and
			 distributive share of charitable contributions made by the partnership.
1. For an Alabama resident partner or member,
			 the K-l for tax years beginning after December 31, 1996 and before January 1,
			 2011 shall include:
(i) For multi-state
			 subchapter K entities doing business within and without the State of Alabama,
			 only that income which is required to be allocated and apportioned to Alabama
			 under the rules of Section 40-18-22. (If the multi-state subchapter K entity
			 is not doing business in Alabama, no income is reportable to Alabama from that
			 subchapter K entity.)
(ii) For a
			 subchapter K entity doing business in only one state, whether the state of
			 Alabama or another state, the distributive share of the entire income from that
			 subchapter K entity.
2.
			 For a non-resident partner or member, the K-l shall include:
(i) For multi-state subchapter K entities
			 doing business within and without the State of Alabama, only that income which
			 is required to be allocated and apportioned to Alabama under the rules of
			 Section 40-18-22.
(ii) For a
			 subchapter K entity doing business in Alabama exclusively, the distributive
			 share of the entire income from that subchapter K entity.
3. For an Alabama resident partner or member,
			 the K-l for tax years beginning after December 31, 2010 shall include amounts
			 determined in accordance with subchapter K of the Internal Revenue Code,  26 U.S.C. §§
											701-761, Sections 40-18 -24  and
			 40-18-14,
Code of Ala. 1975
, and without regard to 1. above.
			 Likewise, Alabama resident partners or members of sub-chapter K entities are
			 entitled to a credit computed in accordance with Section 40-18-21(a),
Code of Ala. 1975
, for taxes paid by (or on e behalf
			 of) the resident partner or member (including composite return and withholding
			 payments) to other states where the sub-chapter K entity does business and is
			 treated as a sub-chapter K entity.