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.
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.
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.
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.
