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.
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.
