Current through Register Vol. 42, No. 11, August 30, 2024
(1)
(a) Each corporation, joint stock company, or
association, except as provided in (b), subject to Alabama income tax shall
file a separate return for each tax year, including organizations subject to
taxation on unrelated business taxable income as provided in Section
40-18-32,
Code of Ala. 1975. The return (Form 20C for
corporations and organizations with unrelated business taxable income, and Form
20S for an Alabama S corporation) shall be filled out completely and in
accordance with the instructions. The return must be signed by one of the
following officers: the president, vice-president, treasurer, assistant
treasurer, secretary, assistant secretary, chief accounting or financial
officer. The individual preparing the return, if a paid preparer, must also
sign the return, and his or her address should be shown...
(b) In lieu of filing separate entity returns
in Alabama, a group of related corporations may elect to be treated as an
Alabama affiliated group filing a consolidated corporate income tax return.
Qualifications for an "Alabama affiliated group" are found in Section
40-18-39(b)(1),
Code of Ala. 1975. For more information about filing
an Alabama consolidated return, see Alabama Rule
810-3-39-.03.
(2) If the property or business of
a corporation is operated by a receiver, trustee, or assignee, such person
shall make a return for the corporation in the same manner as the corporation
would otherwise make the return. Any tax due on the basis of such return shall
be collected in the same manner as if collected from the corporation.
(3) Nexus. A corporation having "substantial
nexus" with Alabama is subject to Alabama income tax. A corporation has
"substantial nexus" with Alabama if certain thresholds are exceeded pursuant to
Section
40-18-31.2,
Code of Ala. 1975.
Author: Holly H. Coon
Statutory Authority:
Code of Ala.
1975, §§
40-2A-7(a)(5),
40-18-39.
