Organizations referred to in 26 U.S.C. § 501(a), as well as several others organizations referenced in 40-18-32 will not be required to file corporation income tax returns with the Alabama Department of Revenue for as long as they retain their exempt status under applicable Federal and State laws. If they have unrelated business income as determined in accordance with 26 U.S.C. § 512, the organization should file Form 20C with a copy of Federal Form 990T.
Organizations referred to in 26 U.S.C. § 501(a) as well as several others organizations referenced in 40-18-32 will not be required to file corporation income tax returns with the Alabama Department of Revenue for as long as they retain their exempt status under applicable federal and state laws. If they have unrelated business income as determined in accordance with 26 U.S.C. § 512, then the organization should file Form 20C with a copy of Federal Form 990T.
For tax years beginning January 1, 2001, the tax rate is 6.5%. For tax years prior to 2001, the tax rate was 5%.
For tax years beginning on or after January 1, 2016, Corporate Income Tax began following the federal due dates for corporate returns:
For tax year beginning on or after January 1, 2022:
Corporations are required to file their income tax return one month following the corresponding federal income tax returns, including applicable extensions, that are required to be filed as provided under federal law. If the due date falls on a Saturday, Sunday, or state holiday, the return will be due the following business day.
The corporation’s full tax liability is due on or by the original due date of the return without the benefit of the additional one-month extension.
Schedule BC. The Alabama Department of Revenue now requires the use of Schedule BC – Business Credits, when claiming business tax credits. The schedule allows the taxpayer to compute the total amount of tax credits allowable. The amounts entered on the Schedule BC will carry over to the Form 20C, page 1. Many credits now must be claimed on the taxpayer’s My Alabama Taxes account in order to receive the credit and the Schedule BC attached to the return. For more information on credits, visit ALDOR’s Tax Incentives and see instructions for Schedule BC.
If the payment is $750 or more, payments must be made electronically. For more information, visit ALDOR’s Make A Payment Page or call the EFT unit at 1-877-256-2447 or 334-353-7659.
New taxpayers, who have recently created a corporate income tax account, will receive an Online Filing Information letter. The Online Filing Information letter is for information purposes only and provides the taxpayer with the account number, Sign-on ID, and Access Code which will allow the taxpayer to create an account at My Alabama Taxes.
NOTE: Corporate income tax returns cannot be filed on My Alabama Taxes.
Electronic Payment Options Available:
New taxpayers, who have recently registered with the Alabama Secretary of State, will receive an Online Filing Information letter. The Online Filing Information letter is for “information purposes” and provides the taxpayer with a Sign On ID and Access Code which permits access to My Alabama Taxes.
Payments less than $750 not remitted electronically must be remitted with Form BIT-V. DO NOT MAIL FORM BIT-V IF THE PAYMENT IS REMITTED ELECTRONICALLY. To obtain Form BIT-V visit revenue.alabama.gov.
View information on the Small Business Health Premiums Deduction (Act 2008-559, amended by Act 2011-155). View Form 4020- Small Business Health Insurance Deduction Information.
