Alabama Administrative Code
Title 810 - ALABAMA DEPARTMENT OF REVENUE
Chapter 810-3-29 - FIDUCIARY RETURNS
Section 810-3-29-.08 - Alabama Requirements For Mandatory E-File of Fiduciary Income Tax Returns
Universal Citation: AL Admin Code R 810-3-29-.08
Current through Register Vol. 43, No. 02, November 27, 2024
(1) Scope - This rule explains the electronic filing mandate requirements and exclusions for both an income tax return preparer and an Estate/Trust.
(2) Definitions.
(a) Income tax
return preparer - a person, firm or company who meet one of the following:
1. Any person who prepares an Alabama
fiduciary income tax return in exchange for compensation.
2. Any person who employs another person to
prepare, in exchange for compensation, any current year Alabama fiduciary
income tax return.
3. Any
accounting firm or company who employs a person or group of people who prepare,
in exchange for compensation, any current year Alabama Fiduciary Income Tax
Return.
(3) Income Tax Return Preparer Mandate.
(a) 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 Ala.
1975.
(b) Paragraph
(3a) of this rule, applies to acceptable fiduciary income tax returns required
to be filed for taxable years beginning on and after January 1, 2016.
(c) Paragraph (3a) shall cease to apply to an
income tax preparer if, during that calendar year and all subsequent years, the
income tax preparer prepared no more than 15 original fiduciary income tax
returns.
(d) Paragraph (3a) of this
rule, may not be interpreted to require electronic filing of acceptable
fiduciary income tax returns that are required to be filed on or before January
1, 2016.
(4) Estate/Trust Fiduciary Income Tax Mandate.
(a) 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.
(5) Compliance with the E-File Mandate.
(a) An Income Tax Return
preparer may be subject to a random monitoring visit for not electronically
filing returns
(b) If it is shown
that failure to electronically file Fiduciary Income Tax Returns is due to
willful neglect and no prior approval from the Department has been obtained to
paper file, then that tax preparer's acceptance in the Alabama Business MeF
Program shall be revoked. The tax preparer will be unable to electronically
transmit Fiduciary Income Tax Returns to the department.
(6) Exclusions from the E-File Mandate.
(a) If an entity is exempt
from filing the federal 1041 as stated in the IRS publication 4164 for the tax
year of the Alabama return being filed, then they are exempt from the Alabama
e-file mandate.
(b) Opting to paper
file the federal 1041 does not exclude an income tax preparer or Estate/Trust
from the Alabama e-file mandate. To be in compliance with the Alabama e-file
mandate, an accepted current tax year federal return must be transmitted
electronically with the mandated electronic Alabama return.
Authors: Melissa Gillis, Veronica Jennings
Statutory Authority: Code of Ala. 1975, §§ 40-2A-7(a)(5), 40-18-40, 40-30-1 through 6.
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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