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Information on new forms, law changes, or other changes to the Individual & Corporate Tax Forms for the 2008 tax season.
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Form Changes
Automatic Six-Month Extension to File Form CPT and PPT - Effective with taxable years beginning on or after January 1, 2009, the filing of a Form PSE will no longer be required in order to obtain an extension to file the business privilege tax return. According to Rule 810-2-8-.06 any taxpayer required to file a business privilege tax return will be granted an automatic six month extension of time for filing the return. While an automatic extension is in place for the filing of the annual business privilege tax return, payment of the total tax due (including any corporate annual report fees) must be received on or before the original due date of the return. Payments made for a taxable year in which the automatic extension provision is utilized are referred to as automatic extension payments. Form BPT-V must accompany all business privilege tax payments, unless payments are made electronically.
Form BPT-IN will be used for all entities filing the initial return. The Forms PPT and CPT will no longer be used for initial returns. The checkboxes on these returns have been removed.
Form BPT-V - Business Privilege Tax Voucher is required to submit return and automatic extension payments due with the 2009 Business Privilege tax returns.
BPT Account Number has been added to the Forms BPT-IN, PPT and CPT. The BPT (Business Privilege Tax) account number is used only if the taxpayer does not have a FEIN( Federal Employer Identification Number). The account number is issued when the account is opened and is provided in the notice advising the taxpayer of the Business Privilege Tax liability. The account number is also provided in the letter notifying the taxpayer of a Sign-On ID and an Access Code for using the Electronic Funds Transfer (EFT) System.
Taxable Year Information - The Determination Period” box has been removed on the Forms CPT and PPT. Boxes for Calendar Year, Fiscal Year, Amended Return with ending dates populated have been added. The determination period is defined in Section 40-14A-1, Code of Alabama 1975, as the taxpayer’s taxable year next preceding the taxpayer’s current taxable year. (Generally, it is the taxable year that just ended.) For more information on the Determination Period, please see the Business Privilege Tax Forms Instructions (for CPT and PPT) and the BPT-IN instructions.
FEIN to Use for Completing Business Privilege Tax Returns - The taxpayer’s federal employer identification number (FEIN) is required to complete Form CPT and Form PPT. Enter “applied for” if an FEIN will be assigned to the taxpayer. Check the box (FEIN Not Required) if a FEIN will not be assigned to the taxpayer and enter the BPT (Business Privilege Tax) account number on Form PPT or CPT, Line 3d or Form BPT-IN, Line 3c. Single member limited liability companies should not use their owner’s FEIN or Social Security Number.
Property Owner's Checkbox - A checkbox for Property Owners has been added to the Forms BPT-IN, CPT, and PPT. Property Owners Associations business privilege tax is limited to $100. Homeowners Associations do not pay Business Privilege Tax. For more information, please see the Business Privilege Tax Forms Instructions (for CPT and PPT) and the BPT-IN instructions.
Schedule BPT-E - The Form BPT-E (Family LLE Election) is no longer a form but a schedule that needs to be attached to the return.
Credit Card Payments - You may be able to use your credit card to pay your tax liability with Official Payments Corporation, Link 2 Gov and Value Payment Systems. You may choose to use your Discover/Novus, MasterCard, Visa or American Express card. Value Payment Systems does not accept American Express but has a program called BillMeLater. There is a convenience fee for these services that is paid Official Payments Corporation, Link 2 Gov or Value Payment Systems.
- Official Payments Corporation: Visit www.officialpayments.com or call 1-800-272-9829. If you choose to use the phone method, you will need to enter the Alabama Jurisdiction Code which is 1101.
- Link2Gov: Visit www.ALTaxPayment.com or call 1-866-972-9829.
- ValuePaymentSystems: Visit http://www.payaltax.com/
Financial Institution Excise Tax
Alabama Decouples from the Federal Economic Stimulus Act of 2008 - Act Number 2008-549, passed by the Alabama Legislature during the first 2008 Special Session, decoupled Alabama financial institutions excise tax laws from the bonus depreciation and the additional Section 179 expense provisions of the Federal Economic Stimulus Act of 2008. Alabama financial institutions excise tax laws will continue to be tied to the federal depreciation rules without consideration of the changes implemented by the Economic Stimulus Act of 2008. For more information, please see the ADOR Policy - Decoupling of Alabama Income Tax Law from the Bonus Depreciation and Additional 179 Provisions of the Federal Economic Stimulus Act of 2008. For more information, please see the ADOR Policy - Decoupling of Alabama Income Tax Law from the Bonus Depreciation and Additional 179 Provisions of the Federal Economic Stimulus Act of 2008.
Form FIE-V - Financial Institution Excise Tax Payment Voucher is required to submit payments due with all 2009 excise tax returns. Any excise tax return payment mailed to the Department should be remitted with Form FIE-V. Payments of $750 or more are required to be remitted electronically. If the payment is made electronically, do not remit Form FIE-V.
Form BIT-V - Taxpayers with a business income tax payment of less than $750 must complete Form BIT-V, Alabama Business Income Tax Voucher, to submit single business tax payments (including automatic extension payments) due on your 2008 return.
Electronic Filing - The Alabama Department of Revenue is accepting the electronic filing of the Alabama Corporate Income Tax Returns, schedules, forms, and correspondence for tax years 2007 and forward. For additional information and links to software providers, visit the Corporate E-file main page at http://www.revenue.alabama.gov/income tax/corpefilemain.htm.
Captive Real Estate Investment Trusts (Captive REITS) - Captive REITS are defined in Section 40-18-1, Code of Alabama, 1975. When filing an Alabama Form 20C return, Captive REITS are required to add to income the amount of the Dividends Paid Deduction.
Alabama Decouples from the Federal Economic Stimulus Act of 2008 - Act Number 2008-549, passed by the Alabama Legislature during the first 2008 Special Session, decoupled Alabama income tax laws from the bonus depreciation and the additional Section 179 expense provisions of the Federal Economic Stimulus Act of 2008. The amount of bonus depreciation and the additional Section 179 expense deduction claimed on the federal return (as allowed by the Federal Economic Stimulus Action of 2008) must be added back to Federal Taxable Income on Schedule A of the Alabama Form 20C return. For more information, please see the ADOR Policy - Decoupling of Alabama Income Tax Law from the Bonus Depreciation and Additional 179 Provisions of the Federal Economic Stimulus Act of 2008.
Automatic Six-month Extension to File the Form 20C - An automatic extension of six months has been granted to file the Alabama Form 20C Return, but the full amount of the tax due for a tax year is due, in full, by the original due date of the return. If the total of the estimated tax payments made for a tax year is less than the amount of tax due for the tax year, then an automatic extension payment in the amount of the tax deficiency is due by the original due date of the return for the tax year.
Form 20C-C - is now used to file your Consolidated Corporation Income Tax Return.In order for Form 20C-C to be complete, a Proforma Form 20C should be completed, including all appropriate schedules, for each separate nexus member of the Alabama Affiliated Group (AAG) and attached behind Form 20C-C. Any Form 20C-C filed without the completed and attached 20C’s for the separate members of the AAG, will be considered incomplete. See instructions for Form 20C-C for additional information.
Form 20C-AS - Alabama Affiliations Schedule has been included on page 2 of Form 20C-C, Consolidated Corporation Income Tax Return to replace Form 20C-AAGIS for tax year 2008 and forward.
Credit Card Payments - You may be able to use your credit card to pay your tax liability with Official Payments Corporation, Link 2 Gov and Value Payment Systems. You may choose to use your Discover/Novus, MasterCard, Visa or American Express card. Value Payment Systems does not accept American Express but has a program called BillMeLater. There is a convenience fee for these services that is paid Official Payments Corporation, Link 2 Gov or Value Payment Systems.
- Official Payments Corporation: Visit www.officialpayments.com or call 1-800-272-9829. If you choose to use the phone method, you will need to enter the Alabama Jurisdiction Code which is 1101.
- Link2Gov: Visit www.ALTaxPayment.com or call 1-866-972-9829.
- ValuePaymentSystems: Visit http://www.payaltax.com/
Alabama Decouples from the Federal Economic Stimulus Act of 2008 - Act Number 2008-549, passed by the Alabama Legislature during the first 2008 Special Session, decoupled Alabama income tax laws from the bonus depreciation and the additional Section 179 expense provisions of the Federal Economic Stimulus Act of 2008. The amount of bonus depreciation and the additional Section 179 expense deduction claimed on the federal return (as allowed by the Federal Economic Stimulus Action of 2008) must be added back. For more information, please see the ADOR Policy - Decoupling of Alabama Income Tax Law from the Bonus Depreciation and Additional 179 Provisions of the Federal Economic Stimulus Act of 2008.
- Schedule C - Attach an explanation and show the Bonus Depreciation adjustment as “Other Expenses” on Federal Schedule C. The net profit or (loss) from the Federal Schedules C with adjustments should be entered on Page 2, Part I, Line 2a for Form 40 and Page 2, Part I, Line 4a for Form 40NR. The Federal Economic Stimulus Act of 2008 “Bonus Depreciation” for the Schedule C should also be entered on Part I, Line 2b for Form 40 and Page 2, Part I, Line 4b for Form 40NR. This line is for informational purposes only. THE ADJUSTMENT IS MADE ON THE FEDERAL SCHEDULE. Please make sure that you make an adjustment for the difference between the amount of regular MACRS deductions for the same qualifying property and the amount of Alabama-allowed depreciation for the same qualifying property.
- Schedule E (Income from Rental Real Estate & Royalties) - Alabama law has no provision to allow a deduction for the bonus depreciation allowed by the Federal Economic Stimulus Act of 2008. Do not include the amount of the bonus depreciation on Part I, Line 20.
- Schedule E (Income from Partnerships, S-Corporations, Estates & Trusts) - If you received a K-1 from a partnership, S corporation, estate or trust you must add back to you income or loss from that entity any bonus depreciation attributable to the Federal Economic Stimulus Act of 2008 deducted by that entity. You should contact the entity that provided you the K-1 to obtain this information.
- Schedule F - Attach an explanation and show the Bonus Depreciation adjustment as “Other Expenses” on Federal Schedule F. The net profit or (loss) from the Federal Schedules F with adjustments should be entered on Page 2, Part I, Line 7a for Forms 40 and 40NR. The Federal Economic Stimulus Act of 2008 “Bonus Depreciation” for the Schedule F should also be entered on Page 2, Part I, Line 7b for Forms 40 and 40NR. These lines are for informational purposes only. THE ADJUSTMENT IS MADE ON THE FEDERAL SCHEDULE. Please make sure that you make an adjustment for the difference between the amount of regular MACRS deductions for the same qualifying property and the amount of Alabama-allowed depreciation for the same qualifying property.
New deduction for Education Savings Programs - Alabama taxpayers may deduct up to $5,000 per year or $10,000 if joint filers, for contributions made after Dec. 31, 2007, to the Alabama Prepaid Affordable College Tuition Program (PACT) or the Alabama College Education Savings Program.
Amended Returns - If you have already filed a return and become aware of any changes to income, deductions or credits, you should file an amended tax return. Beginning with tax year 2008, you should file a completed Alabama Individual income Tax Return with the “Amended” box checked. A detailed explanation page of all the changes made should be attached to the tax return. For tax years prior to tax year 2008 you should mail in a completed Form 40X, Amended Alabama Individual income tax return, to change those items.
Automatic Six-Month Extension to File - If you know you cannot file your return by the due date, you do not need to file for an extension. You will automatically be granted an extension until October 15, 2009. If you anticipate that you will owe additional tax on your return you should submit your payment with a payment voucher (Form 40V) by April 15, 2009. Except in cases where taxpayers are abroad, no extension will be granted for more than 6 months. An extension means only that you will not be assessed a penalty for filing your return after the due date. Interest on the additional tax due from the due date of the return and any penalties will be assessed if applicable to your return.
Estimates - You may now file and pay your estimated tax electronically by visiting https://www.alabamainteractive.org/taxestimation/
Form 40V - If making a payment with your original or amended return (for 2008 and forward), you MUST complete Form 40V. Submit Form 40V along with your payment, loose in the envelope with your return. If you electronically filed your return and are making a payment by check or money order, you must complete a Form 40V. If you are making a payment by credit card or E-Check, a Form 40V is not required. If you are making an automatic extension payment, you also must use Form 40V unless it is made electronically.
Refund Status - You can check the status of your current year refund by calling 1-800-558-3912 or online at https://www.revenue.alabama.gov/Refunds/refundstatus.aspx.
Credit Card Payments - You may be able to use your credit card to pay your tax liability with Official Payments Corporation, Link 2 Gov and Value Payment Systems. You may choose to use your Discover/Novus, MasterCard, Visa or American Express card. Value Payment Systems does not accept American Express but has a program called BillMeLater. There is a convenience fee for these services that is paid Official Payments Corporation, Link 2 Gov or Value Payment Systems.
- Official Payments Corporation: Visit www.officialpayments.com or call 1-800-272-9829. If you choose to use the phone method, you will need to enter the Alabama Jurisdiction Code which is 1100.
- Link2Gov: Visit www.ALTaxPayment.com or call 1-866-972-9829.
- ValuePaymentSystems: Visit http://www.payaltax.com/
Alabama Decouples from the Federal Economic Stimulus Act of 2008 - Act Number 2008-549, passed by the Alabama Legislature during the first 2008 Special Session, decoupled Alabama income tax laws from the bonus depreciation and the additional Section 179 expense provisions of the Federal Economic Stimulus Act of 2008. The amount of bonus depreciation and the additional Section 179 expense deduction claimed on the federal return (as allowed by the Federal Economic Stimulus Action of 2008) must be added back to Federal Taxable Income on Schedules A and on Schedule K of the Alabama Form 20S and Form 65. For more information, please see the ADOR Policy - Decoupling of Alabama Income Tax Law from the Bonus Depreciation and Additional 179 Provisions of the Federal Economic Stimulus Act of 2008.
- Form 20S (Schedule A) - On line 8b, enter as a positive amount the amount of bonus depreciation claimed on the Federal 1120S return (as allowed by the federal Economic Stimulus Act of 2008) for the qualifying property; add to that amount the amount of regular MACRS deductions for the same qualifying property; and, subtract from that amount the amount of Alabama- allowed depreciation for the same qualifying property. Attach a computation of the amount entered on line 8b – identifying each piece of property qualifying for the federal bonus depreciation.
- Form 20S (Schedule K) - On line 4b (Adjustments Required), enter as a positive amount, in the Federal Amount Column, the amount of §179 expense deduction allowed by the Federal Economic Stimulus Act of 2008, reduced by the amount of Alabama-allowed depreciation on the same qualifying property. Attach a computation of the amount entered on line 4b (Federal Amount Column) – identifying each piece of property qualifying for the federal additional §179 expense deduction (as allowed for by the Federal Economic Stimulus Act of 2008).
- Form 65 (Schedule A) - On line 7b, enter as a positive amount the amount of bonus depreciation claimed on the Federal 1065 return (as allowed by the Federal Economic Stimulus Act of 2008) for the qualifying property; add to that amount the amount of regular MACRS deductions for the same qualifying property; and, subtract from that amount the amount of Alabama- allowed depreciation for the same qualifying property. Attach a computation of the amount entered on line 7b – identifying each piece of property qualifying for the federal bonus depreciation.
- Form 65 (Schedule K) - On line 4b (Adjustments Required), enter as a positive amount, in the Federal Amount Column, the amount of §179 expense deduction allowed by the Federal Economic Stimulus Act of 2008, reduced by the amount of Alabama-allowed depreciation on the same qualifying property. Attach a computation of the amount entered on line 4b (Federal Amount Column) – identifying each piece of property qualifying for the federal additional §179 expense deduction (as allowed for by the Federal Economic Stimulus Act of 2008).
Electronic Filing - The Alabama Department of Revenue is accepting the electronic filing of the Alabama Partnership (Form 65) and Corporate Income Tax (Form 20S) returns, schedules, forms, and correspondence for tax years 2007 and forward. The PTE-C (Non-Resident Composite) can be electronically filed for tax year 2008. For additional information and links to software providers, visit the Corporate E-file main page at http://www.revenue.alabama.gov/income tax/corpefilemain.htm.
Automatic Five-Month Extension to File Forms 41 and 65 - The Forms 4868A and 20E are no longer required to be completed to request an extension of time to file the Forms 41 or 65. A five month extension of time for filing Form 41and 65 will be granted automatically. However, the extension of time for filing the return is not an extension of time for payment of tax.The amount of tax due must be paid on or before the original due date of the return without considering the extension of time to file the return. Automatic Extension payments can be made using the Form FDT-V for Form 41 and Form BIT-V for Form 65.
Automatic Six-Month Extension to File Form 20S - The Form 20E or 7004 are no longer required to request an extension of time to file the 20S. A six month extension of time for filing Form 20S will be granted automatically. However, the extension of time for filing the return is not an extension of time for payment of tax. The amount of tax due must be paid on or before the original due date of the return without considering the extension of time to file the return. The automatic extension payments can be made using the Form BIT-V.
Estimated Payments - Estimated payments for Form PTEC and Form 20S must be made using the business income tax voucher Form BIT-V. Voluntary estimate payments for the Form 41 can be made using the Fiduciary Income Tax Voucher Form FDT-V.
Return Payments - Payment of amounts over $750 must be made electronically. Payment of amounts less than $750 made with the Form 20S and Form PTEC must be accompanied by the business income tax voucher Form BIT-V. The voucher is available under Forms at www.revenue.alabama.gov.
Form FDT-V - Taxpayers making a payment for taxes due on a Form 41 return or as an estimated tax payment on the return must complete and file Form FDT-V, unless the payment is made electronically.
Credit Card Payments - You may be able to use your credit card to pay your tax liability with Official Payments Corporation, Link 2 Gov and Value Payment Systems. You may choose to use your Discover/Novus, MasterCard, Visa or American Express card. Value Payment Systems does not accept American Express but has a program called BillMeLater. There is a convenience fee for these services that is paid Official Payments Corporation, Link 2 Gov or Value Payment Systems.
- Official Payments Corporation: Visit www.officialpayments.com or call 1-800-272-9829. If you choose to use the phone method, you will need to enter the Alabama Jurisdiction Code which is 1101.
- Link2Gov: Visit www.ALTaxPayment.com or call 1-866-972-9829.
- ValuePaymentSystems: Visit http://www.payaltax.com/
Lower E-filing Requirement for Employers/Filing Agents - Effective December 31, 2008, employers and filing agents who have issued 100 or more Alabama W2’s (and/or 1099’s with Alabama income tax withheld) must electronically file this information through the Department’s Website.
Bulk Filer Registration for Accountants and Tax filing Services - Effective April 7, 2008, accountants or tax filing services who file withholding tax returns and payments on behalf of employers must register with the Department as a bulk filer and must utilize their bulk filer registration when filing withholding tax returns on behalf of their clients. For more information about bulk filing, go to http://www.revenue.alabama.gov/withholding/bulkfl.html.
Withholding Booklet - Effective January 15, 2008, the withholding booklet has been revised. An updated copy can be downloaded at http://www.revenue.alabama.gov/Withholding/index.html
Updated last: March 11, 2009
