FAQs Archive - Alabama Department of Revenue

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Showing (75) FAQs

Question	Category	Read More
Why is the Alabama Medical Cannabis Privilege Tax levied?	Medical Cannabis Privilege Tax
How do I register for My Alabama Taxes?	Medical Cannabis Privilege Tax
Can an electing Pass-Through Entity claim a net operating loss?	Electing Pass-Through Entity
How do I apply for the credit?	Individual Income Tax ,
What is an initial return? When is it due? How do I file?	Medical Cannabis Privilege Tax
How do I make a Payment for Medical Cannabis Privilege Tax?	Medical Cannabis Privilege Tax
Can an owner, member, partner, or shareholder take a credit for taxes paid by the Electing Pass-Through Entity?	Electing Pass-Through Entity
Do I have to apply for the credit every year?	Individual Income Tax ,
When is the Annual Alabama Medical Cannabis Privilege Tax return due?	Medical Cannabis Privilege Tax
What do I need to do in response to the Medical Cannabis Privilege Tax Delinquent Notice?	Medical Cannabis Privilege Tax ,
Can an Electing Pass-Through Entity exclude income attributable to certain owners, i.e. tax-exempt owners, when calculating tax due?	Electing Pass-Through Entity
If I do not have a certificate, where can I get one?	Individual Income Tax ,
Can I file an extension to obtain more time to file an Alabama Medical Cannabis Privilege Tax return?	Medical Cannabis Privilege Tax
Where do I file and pay the Alabama Secretary of State Corporation Annual Report (AL-CAR)?	Business Privilege Tax
Do owner’s member, partner, or shareholders of an Electing Pass-Through Entity have a filing requirement?	Electing Pass-Through Entity
What happens once I submit my certificate through My Alabama Taxes?	Individual Income Tax ,
How do I find Medical Cannabis Privilege Tax Forms on the ALDOR website?	Medical Cannabis Privilege Tax
How does the pass-through entity make an election to be treated as an Electing Pass-Through Entity? When is a pass-through entity required to make the election?	Electing Pass-Through Entity
Can an Electing Pass-Through Entity claim Tax Incentive credits?	Electing Pass-Through Entity
How do I claim the credit on my Alabama tax return?	Individual Income Tax ,
What address do I use to mail the Alabama Medical Cannabis Privilege Tax return?	Medical Cannabis Privilege Tax
Can a Pass-Through Entity make an election to be treated as an Electing Pass-Through Entity simply by filing the tax return?	Electing Pass-Through Entity
Can an electing Pass-Through Entity pass through Tax Incentive credits to its members?	Electing Pass-Through Entity
What is the Volunteer Emergency Responders Tax Credit?	Individual Income Tax ,
Does the Alabama Medical Cannabis Privilege Tax return require any attachments?	Medical Cannabis Privilege Tax
Can a Pass-Through Entity revoke its election to be treated as an Electing Pass-Through Entity?	Electing Pass-Through Entity
Will an Electing Pass-Through Entity still be required to file a composite return, PTE-C, on behalf of nonresident members?	Electing Pass-Through Entity
What is the training requirement?	Individual Income Tax ,
How is an amended Alabama Medical Cannabis Privilege Tax return filed?	Medical Cannabis Privilege Tax
What is the Electing Pass-Through Entity Tax return form and when is it due?	Electing Pass-Through Entity
Can a taxpayer transfer an overpayment from a composite return (Form PTE-C) to an Electing pass through entity’s account?	Electing Pass-Through Entity
What is a Determination Period?	Medical Cannabis Privilege Tax
Can a pass-through entity request an extension of time to file its tax return?	Electing Pass-Through Entity
Can a pass-through entity with all resident owners elect to be an Electing Pass-Through Entity?	Electing Pass-Through Entity
How is the rate for the Medical Cannabis Privilege Tax determined?	Medical Cannabis Privilege Tax
Are pass-through entities that elect to pay the Electing Pass-Through Entity Tax required to make estimated tax payments?	Electing Pass-Through Entity
What entity types can elect to be treated as an Electing Pass-Through Entity?	Electing Pass-Through Entity
How is the federal taxable income for S corporations and limited liability entities determined?	Medical Cannabis Privilege Tax
When are estimated tax payments due?	Electing Pass-Through Entity
Does Alabama allow a credit for Pass-Through Entity taxes paid to other states?	Individual Income Tax ,
If you have questions, or need to provide information regarding the Medical Cannabis Privilege Tax, electronic responses, with explanations and attachments, may be sent to:	Medical Cannabis Privilege Tax
Will an entity be penalized if estimated tax payments are not made?	Electing Pass-Through Entity
What is a Qualified Rescue Squad Member?	Individual Income Tax ,
How does an entity elect to be treated as a “family limited liability entity” and therefore subject to the $500 cap provided for under the privilege tax statute?	Medical Cannabis Privilege Tax
How do I make an estimate payment?	Electing Pass-Through Entity
What is a Qualified Volunteer Firefighter?	Individual Income Tax ,
Why did I receive a Medical Cannabis Privilege Tax Delinquent Notice?	Medical Cannabis Privilege Tax ,
What if a PTE makes estimated payments and does ultimately not make the election to be an Electing PTE for this tax year?	Electing Pass-Through Entity
When can I claim the Emergency Responders Tax Credit?	Individual Income Tax ,
What do I need to do in response to the Medical Cannabis Privilege Tax Delinquent Notice?
How does the pass-through entity determine its tax liability? What is the entity- level tax rate?	Electing Pass-Through Entity
What is the amount of the tax credit?	Individual Income Tax ,
Who is required to file an Alabama Medical Privilege Tax return?	Medical Cannabis Privilege Tax
What do I need to do if I received this notice in error?	Medical Cannabis Privilege Tax ,
Are guaranteed payments included in the calculation of taxable income?	Electing Pass-Through Entity
Can I claim more than one credit if I have multiple certifications and/or licenses?	Individual Income Tax ,
If property is transferred to a relocation company, is the relocation company subject to the withholding requirements of Section 40-18-86, Code of Alabama 1975?	Income Tax ,
Is a buyer required to inquire as to whether a LLC-seller is a “disregarded” entity?	Income Tax ,
Is a single-member limited liability company (SMLLC) whose status is disregarded for federal income tax purposes considered to be the seller for purposes of Section 40-18-86, Code of Alabama 1975?	Income Tax ,
One of the conditions for a nonresident seller to be considered a deemed resident under Section 40-18-86, Code of Alabama 1975, is that the seller has filed Alabama income tax returns, or appropriate extensions, for the two income tax years immediately preceding the year of the sale. What if the sale occurs before the due date for the previous year’s income tax return?	Income Tax ,
Can a nonresident seller qualify as a deemed resident in order to be exempt from withholding, if he satisfies some, but not all of the listed conditions?	Income Tax ,
If the seller is a corporation, how does it claim the withholding credit since the corporation income tax return does not have a line for tax withheld?	Income Tax ,
If tax is withheld from a nonresident seller who is a partnership, S corporation, or limited liability company, how does the seller claim credit for the withholding?	Income Tax ,
Does the withholding required under Code of Alabama 1975, Section 40-18-86, apply to the sale or transfer of timber located in Alabama by a nonresident of Alabama?	Income Tax ,
If the seller is a financial institution, is the sale subject to withholding?	Income Tax ,
If the seller is an insurance company, is the sale subject to withholding?	Income Tax ,
If the seller of the property is an exempt organization, is the sale subject to withholding?	Income Tax ,
If an Alabama resident relocates to another state and buys another residence, does his Alabama residence cease to be his principal residence for purposes of Alabama law?	Income Tax ,
Is withholding required on a transaction that qualifies as a Section 1031 exchange under the Internal Revenue Code? What if the transaction is a “deferred” Section 1031 exchange?	Income Tax ,
Is withholding required on a like-kind exchange of property?	Income Tax ,
Must a certificate of exemption (Form NR-AF3) be filed when the seller is exempt by law from the withholding requirement?	Income Tax ,
If the seller is an Alabama resident, must he provide the buyer with a sworn affidavit Form NR-AF1 (or for deemed residency)?	Income Tax ,
If a buyer reasonably relies on a seller’s sworn affidavit of residency, will the buyer be liable if it later turns out that the seller does not meet the conditions of deemed residency?	Income Tax ,
Is withholding required when there are several owners, and some of the owners are nonresidents?	Income Tax ,
Are only transactions which result in taxable income to the seller subject to withholding?	Income Tax ,