If an income tax return preparer prepares 25 or more acceptable, original fiduciary income tax returns using tax preparation software in a calendar year, then for that calendar year and for each subsequent calendar year thereafter, all acceptable fiduciary income tax returns prepared by that income tax preparer must be filed using electronic technology, as defined in the “Electronic Tax Return Filing Act,” as codified in Chapter 30 of Title 40, Code of Alabama 1975.
The excess loss on termination may not be passed along to the grantor or beneficiary of an estate or irrevocable trust.
Estate Tax Waivers are no longer required to be filed for estates whose owners
died after Dec. 31, 2004.
Mandatory e-filing for Form 41 - Rule 810-3-29-.08 was approved by the Alabama Department of Revenue and became effective December 15, 2015. It applies to all fiduciary returns required to be filed for taxable years beginning on and after January 1, 2016.
Mail returns with payments to:
Alabama Department of Revenue
Pass Through Entity Section
P.O. Box 327444
Montgomery, AL 36132-7444
Mail returns without payments to:
Alabama Department of Revenue
Individual and Corporate Tax Division
P.O. Box 327440
Montgomery, AL 36132-7440
Estates/Trusts with 20 or more beneficiaries at the end of the Estate/Trust’s taxable year are mandated to e-file Alabama fiduciary income tax returns, for that calendar year and all subsequent tax years.
Yes. List the name of the entity that paid the composite payment and the FEIN. You may include a copy of the K-1 Form 41 for clarification especially if there is more than one composite payment made on behalf of the estate/trust.
Yes, federal taxes paid by the estate on federal Form 706 may be claimed by the estate in the year they are paid.
Yes, federal income tax paid by the estate or trust is allowed as a deduction on Alabama Form 41.
For tax years beginning after December 31, 1998, a qualified subchapter S subsidiary whose stock is 100% owned by an Alabama S corporation is disregarded and treated as a division of the parent. The parent S corporation will file a 20-S return with this state. An Alabama S corporation is any corporation with a valid election under 26 U.S.C. sections 1362 or 1362(b)(3) which conducts business within this state.
If an income tax return preparer prepares 25 or more acceptable, original corporate/partnership income tax returns using tax preparation software in calendar year 2011, then for that calendar year and for each subsequent calendar year thereafter, all acceptable corporate/partnership income tax returns prepared by that income tax preparer must be filed using electronic technology, as defined in the “Electronic Tax Return Filing Act”, as codified in Chapter 30 of Title 40, Code of Alabama 1975.
If an income tax return preparer prepares 25 or more acceptable, original corporate/partnership income tax returns using tax preparation software in calendar year 2011, then for that calendar year and for each subsequent calendar year thereafter, all acceptable corporate/partnership income tax returns prepared by that income tax preparer must be filed using electronic technology, as defined in the “Electronic Tax Return Filing Act”, as codified in Chapter 30 of Title 40, Code of Alabama 1975.
No, there is no opt-out provision for corporate/partnership mandate.
For a Tax Year 2009 Corporation with assets of $5 million or more, or partnerships with 50 or more partners are mandated to e-file Tax Year 2010 Alabama corporate/partnership income tax returns, and all subsequent tax years.
March 4, 2010 and applies to acceptable corporate/partnership income tax returns required to be filed for taxable years beginning on and after January 1, 2009.
No, the same extension will cover both returns.
Mail returns with payments to:
Alabama Department of Revenue
Pass Through Entity Section
P.O. Box 327444
Montgomery, AL 36132-7444
Mail returns without payments to:
Alabama Department of Revenue
Pass Through Entity Section
P.O. Box 327441
Montgomery, AL 36132-7441
Alabama Department of Revenue
Income Tax Administration Division
P.O. Box 327444
Montgomery, AL 36132-7444
The return is due the 15th day of the third month following the end of the S corporation tax period.
Yes, if the non-resident completes Schedule NRA (Alabama Pass-Thru Entity Non-Resident Agreement). This form should be attached to Form 20S when the corporation files. This election remains in place until the non-resident member informs the corporation in writing that he/she wishes to revoke the agreement and participate in the composite filing.
The return is due the 15th day of the third month following the end of the S corporation tax period.
No, Alabama’s income tax laws and rules specifically require each corporation to file a separate return with the department. See §40-18-39(a), Code of Alabama 1975, Rule 810-3-39-.01(5)
No, estimate payments are not required. Voluntary estimate payments should be submitted with a FDT-V Fiduciary Income Tax Payment Voucher.
If an extension has been granted for federal purposes, the extension is also granted for Alabama purposes; the Federal Form 7004 must be submitted with Form 20S. The automatic extension only applies to filing a return; no extensions are granted for payment of taxes due.
ALL TAX PAYMENTS ARE DUE BY THE ORIGINAL DUE DATE OF THE RETURN. Taxes not paid on or before the original due date will be subject to interest at the rate provided in §40-1-44, Code of Alabama 1975, and all applicable penalties until paid. Payments should be submitted with Form PTE-V Pass Through Income Tax Voucher.
