Alabama Administrative Code
Title 810 - ALABAMA DEPARTMENT OF REVENUE
Chapter 810-3-171 - COMPUTATION OF EACH SHAREHOLDER'S SHARE OF THE INCOME, LOSS, DEDUCTION AND CREDIT FROM AN ALABAMA S CORPORATION
Section 810-3-171-.01 - Determination Of Shareholder's Pro Rata Share
Universal Citation: AL Admin Code R 810-3-171-.01
Current through Register Vol. 42, No. 11, August 30, 2024
(1) The "post-termination transition period" is:
(a) The period that begins on the day
following the last day of the last S year, and ending on the later of:
1. One year from the last day of the S year,
or
2. The due date, including
extensions, for filing the return for the last S year.
(b) The 120-day period beginning on the date
of a determination pursuant to an audit of the taxpayer which follows the
termination of the corporation's election to be treated as a federal S
corporation and which adjusts a subchapter S item of income, loss, or deduction
of the corporation.
(c) The 120-day
period beginning on the date of a determination that the S corporation's
election under 26 U.S.C. §
1362 for a previous tax year had been
terminated.
(d)
1. For example, if (a) above applies, the
return, with extensions, will be due not later than 8 1\2 months after the year
end, and the post-termination transition period would always end one year from
the last day of the S year. For instance, if the S year ends on December 31,
1985, the post-termination transition period begins on January 1, 1986, and
ends on December 31, 1986.
2. If
(c) above applies, and a determination is made on July 1, 1986, that the S
election was invalid for the year ended December 31, 1985, the post-termination
transition period begins on July 1, 1986, and ends on October 28,
1986.
(2) The term "determination", as used herein, means:
(a) A determination as defined in U.S.C.
§1313(a); or
(b) An agreement
between the corporation and the U.S. Secretary of the Treasury that the
corporation failed to qualify as an S corporation.
(3) The term "S year" means a taxable year for which a corporation is an Alabama S corporation.
Authors: Verlon Frost, Catherine McCary, Ed Cutter, CPA
Statutory Authority: Code of Ala. 1975, §§ 40-18-171, 40-18-57.
History: Adopted November 13, 1985. Amended: Filed March 31, 2000; effective May 5, 2000.
Disclaimer: These regulations may not be the most recent version. Alabama may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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