Today is Friday, October 24, 2014
Important Notices!
*****  Administrative Law Division Move Effective October 1st, 2014  *****
The Taxpayer Fairness Act transfers Revenue's Administrative Law Division to the newly-created Alabama Tax Tribunal; their website is now http://taxtribunal.alabama.gov/.
 
Instructions For Filing Alabama Mobile Communication Services Tax Returns
General Information For Filing Mobile Communication Services Tax Returns (Form CTS2)

Every home service provider doing business in the State of Alabama on account of furnishing mobile telecommunication services to a customer with a place of primary use in the State of Alabama must collect and remit Alabama Mobile Communication Services Tax to the Alabama Department of Revenue ("ADOR"). The return and remittance are due on or before the twentieth day of the month following the month during which tax is accrued. NOTE: EFT payment information must be transmitted by 4:00 p.m. CST (Central Standard Time) on or before the due date, to be considered timely paid.

Returns filed after the due date are subject to a "failure to timely file" penalty equal to the greater of 10% of the tax required to be paid on the return or $50.00. Tax payments received after the due date are subject to a "failure to timely pay" penalty equal to 10% of the delinquent tax. If the tax is not timely paid, interest is also due at the same rate established by the Secretary of the Treasury under authority of 26 USC 6621.

Instructions For Filing Alabama Mobile Communication Services Tax Returns
Line 1

ESTIMATE DUE FOR CURRENT MONTH: Enter estimated tax due for the current month. The estimate must be at least equal to the actual tax liability for the same calendar month of the preceding year. The estimate cannot be less than zero. NOTE: If you are not required by the ADOR to pay mobile communication services tax on an estimated basis, Line 1 will state "N/A" and is not applicable to your return.

Line 2a
RECEIPTS FROM FURNISHING OF COMMERCIAL MOBILE RADIO SERVICES:  Enter the total receipts from furnishing of commercial mobile radio services and the amount of exempt receipts.
Line 2b
RECEIPTS FROM FURNISHING OF PAGING/BEEPER SERVICES:  Enter the total receipts from furnishing of paging/beeper services and the amount of exempt receipts.
Line 2c
RECEIPTS FROM FURNISHING OF OTHER MOBILE SERVICES:  Enter the total receipts from furnishing of other mobile services and the amount of exempt receipts.
Line 3

TOTAL RECEIPTS: Total receipts will be calculated for each column.

Line 4
TOTAL AMOUNT OF TAX (6% OF TOTAL TAXABLE RECEIPTS): Total tax will be calculated by multiplying Line 3 (Total Receipts) x 6%.
Line 5
COLLECTION ALLOWANCE: Collection allowance will be calculated by multiplying Line 4 x 1/4 of 1%.
Line 6
ESTIMATE PAID ON LAST MONTH'S RETURN: Estimated tax paid on previous month's return. If you are filing this return online for the first time, please enter the appropriate amount. For each subsequent return filed online, the online return will automatically enter on Line 6 the amount that you reported on Line 1 of the previous month's return. NOTE: If you are not required by the ADOR to pay mobile communication services tax on an estimated basis, Line 6 will state "N/A" and is not applicable to your return.
Line 7
BALANCE DUE: For taxpayers required to pay Mobile Communication Services Tax on an estimated basis: Balance Due is the result of Line 5 (Total Tax Due) minus Line 6 (Estimate Paid on Last Month's Return). For taxpayers not required to pay mobile communication services tax on an estimated basis: Balance Due is the result of Line 5 (Total Tax Due).
Line 8
TOTAL TAX DUE: For taxpayers required to pay Mobile Communication Services Tax on an estimated basis: Total tax due is the result of Line 7 (Balance Due) plus Line 1 (Estimate Due for Current Month). For taxpayers not required to pay mobile communication services tax on an estimated basis: Total tax due is the result of Line 7 (Balance Due).
Line 9
PENALTY AND INTEREST, IF DUE: Returns filed after the due date are subject to a "failure to timely file" penalty equal to the greater of 10% of the tax required to be paid on Line 10 of the return or $50.00. Tax payments received after the due date are subject to a "failure to timely pay" penalty equal to 10% of the delinquent tax. If the tax is not timely paid, interest is also due at the same rate established by the Secretary of the Treasury under authority of 26 USC 6621.  (Click here to determine current interest rates.) NOTE: If your return or payment is not timely filed or paid, you will be billed the appropriate penalties and interest by the ADOR.
Line 10
CREDIT CLAIMED: Use Line 10 to claim an amount of credit for a prior overpayment. The credit claimed will be applied to reduce the tax liability shown on the return. NOTE: Any credit for prior overpayment must be approved in advance by the ADOR. Credit claimed should not exceed the sum of Line 8 (Total Tax Due) plus Line 9 (Penalty & Interest). Valid excess credit can be claimed on subsequent returns.
Line 11
TOTAL AMOUNT DUE: The total amount due is the result of Line 8 (Total Tax Due) plus Line 9 (Penalty & Interest) minus Line 10 (Credit Claimed).