The Alabama 20C form is the Corporation Income Tax Return document that corporations operating within Alabama must file with the Alabama Department of Revenue. This form is used for reporting the income, gains, losses, deductions, and credits of the corporation and calculates the income tax liability owed to the state. Corporations, depending on their operational structure—whether operating solely within Alabama, as a multistate entity, or as part of a consolidated federal return—must accurately complete and submit this form to stay in compliance with state tax laws. To ensure your corporation meets its tax obligations accurately and efficiently, consider clicking the button below to get assistance with filling out the Alabama 20C form.
Every year, corporations operating in Alabama navigate the complexities of tax filing, and a crucial element of this process is the Alabama 20C Corporation Income Tax Return form. Designed for the fiscal year 2010, this comprehensive document caters to various corporate structures, including those operating solely within Alabama, multistate corporations, and members of consolidated federal returns. It outlines specific requirements for reporting federal taxable income, adjustments based on Alabama laws, and detailed schedules for apportionment, deductions, and credits, ensuring that corporations accurately calculate their tax obligations to the state. The form also addresses nuances like federal net operating losses, different filing statuses, and specific deductions such as the small business health insurance premiums. Furthermore, it demands thorough documentation, including a copy of the consolidated federal return for affiliated group filings, underlying the stringent compliance standards set by the Alabama Department of Revenue (ADOR). By consolidating federal taxable income adjustments, net operating loss carryforwards, and various tax credits, the Alabama 20C form offers a structured yet intricate pathway for corporations to align with state taxation requirements while accounting for their multifaceted business operations.
FORM
20C
Reset Form
*2100012C* Alabama
Department of Revenue
Corporation Income Tax Return
•CY
•FY
•SY
•52/53 WK
6
6 2021
For the year January 1 – December 31, 2021, or other tax year beginning •_______________________, 2021, ending •_______________________, ________
Check
applicable
box:
•6 PL 86-272
•6 returnInitial
•6 returnFinal
•6 returnAmended
•6 auditFederal change
FEDERAL BUSINESS CODE NUMBER
FEDERAL EMPLOYER IDENTIFICATION NUMBER
Filing Status: (see instructions)
•
• 6 1. Corporation operating only in
NAME •
Alabama.
ADDRESS •
SUITE, FLOOR, ETC •
• 6 2. Multistate Corporation –
CITY
STATE
COUNTRY (IF NOT U.S.) 9-DIGIT ZIP CODE
Apportionment (Sch. D-1).
• 6 3. Multistate Corporation –
CHECK ONLY ONE BOX. The taxpayer files the following form for federal purposes:
•6
Percentage of Sales (Sch. D-2).
•6 1120
•6 1120-F
•6 1120-REIT
•6 990/990T
Other
• 6 4. Multistate Corporation – Separate
This company files as part of
•6 consolidated federal group
•6 consolidated Alabama group
Accounting (Prior written approval
• Federal Parent Name:
FEIN •
required and must be attached).
• 6 5. Proforma Return – files as part of
• Alabama Parent Name:
Alabama Affiliated Group.
•6 2220AL Attached
•6 Schedule of Adjustments to FTI
1
FEDERAL TAXABLE INCOME (see instructions)
. . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
Federal Net Operating Loss (included in line 1)
3
Reconciliation adjustments (from line 26, Schedule A)
4
Federal taxable income adjusted to Alabama Basis (add lines 1, 2 and 3)
5
Net nonbusiness (income)/loss – Everywhere (from Schedule C, line 2, col. E)
6 Apportionable income (add lines 4 and 5)
7
Alabama apportionment factor (from line 9, Schedule D-1)
8
Income apportioned to Alabama (multiply line 6 by line 7)
9
Net nonbusiness income/(loss) – Alabama (from Schedule C, line 2, col. F)
10
Alabama income before federal income tax deduction (line 8 plus line 9)
11a Federal income tax deduction /(refund) (from line 12, Schedule E)
b Small Business Health Insurance Premiums (see instructions)
12
Alabama income before net operating loss (NOL) carryforward (line 10 less lines 11a and b) . . . .
13
Alabama NOL deduction (see instructions)
14
Alabama taxable income (line 12 less line 13)
15
Alabama Income Tax (6.5% of line 14)
16 LIFO Reserve Tax Deferral (see instructions)
17
Alabama Income Tax after LIFO Reserve Tax Deferral (line 15 less line 16)
18
Nonrefundable Credits (from Schedule BC, Section E, line E3)
19
Net tax due Alabama (line 17 less line 18)
20
Payments:
20a
a
Carryover from prior year
20b
b
Current year's estimated tax payments
cCurrent year's Composite Payment(s)/Electing Pass-Through Entity Credit(s) from
Schedule CP-B, line 3 (see instructions)
20c
. . . . . . . . . . . . . . . . . . . . . . . . . .
. . . 20d
d
Extension payment
. . . . . . . . . . . . . . . . . . . . . . . . .
. . . 20e
e Payments prior to adjustment
. . . 20f
f Refundable credits (from Schedule BC, Section F, line F3)
. . . 20g
g Total Payments (add lines 20a through 20f)
. . .
21 Reductions/applications of overpayments
a Credit to subsequent year's estimated tax
. . . . . . . . .
. . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . .
Penny Trust Fund
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . .. . . . . .
c
Penalty due (see instructions)
Late Payment Estimate
Interest due (see instructions)
Estimate Interest
Interest on Tax
e Total reductions (total lines 21a, b, c and d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
22 Total amount due/(refund) (line 19 less 20g, plus 21e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
If you paid electronically check here: 6
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%
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10•
11a •
11b •
12•
13•
14•
15•
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19•
UNLESS A COPY OF THE
FEDERAL RETURN IS
ATTACHED, THIS RETURN
WILL BE CONSIDERED
INCOMPLETE. (SEE ALSO
PAGE 4, OTHER
INFORMATION, NO. 5.)
21a •
21b •
21c •
21d •
21e •
22•
Please
Sign
Here
•6 I authorize a representative of the Department of Revenue to discuss my return and attachments with my preparer.
Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
(
)
Signature
Title
Date
Daytime Telephone No.
ADOR
*2100022C*
PAGE 2
ALABAMA 20C – 2021
Schedule A Reconciliation Adjustments of Federal Taxable Income to Alabama Taxable Income
§40-18-33, Code of Alabama 1975, defines Alabama Taxable Income as federal taxable income without the benefit of the federal net operating loss plus specific additions and less specific deductions. The specific additions and deductions are reflected in the lines provided below. Other reconciliation items include transition adjustments to prevent duplicate deduction or duplicate taxation of items previously deducted or reported on Alabama income tax returns.
ADDITIONS
State and local income taxes
Federal exempt interest income (other than Alabama) on state, county and municipal obligations (everywhere)
3Dividends from corporations in which the taxpayer owns less than 20 percent of stock to the extent properly deducted on
federal income tax return (see instructions)
Federal depreciation on pollution control items previously deducted for Alabama (see instructions)
Net income from foreclosure property pursuant to §10A-10-1.21 (real estate investment trust)
6Related members interest or intangible expenses or costs. From Schedule AB (see instructions).
Total Payments 6a •
minus Exempt Amount 6b •
equals 6c
Captive REITS: Dividends Paid Deduction (from federal Form 1120-REIT)
. . . . . . 7
Contributions not deductible on state income tax return due to election to claim state tax credit
. . . . . 8
11
Total additions (add lines 1 through 10)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . 11
DEDUCTIONS
Refunds of state and local income taxes (due to overpayment or over accrual on the federal return)
Interest income earned on direct obligations of the United States
14Interest income earned on obligations of Alabama or its subdivisions or instrumentalities to extent included in
Aid or assistance provided to the Alabama State Industrial Development Authority pursuant to §41-10-44.8(d)
16
Expenses not deductible on federal income tax return due to election to claim a federal tax credit
Dividends described in 26 U.S.C. §78 from corporations in which taxpayer owns more than 20% of stock (see instructions)
18Dividend income – more than 20% stock ownership (including that described in 26 U.S.C. §951) from non-U.S.
corporations to the extent the dividend income would be deductible under 26 U.S.C. §243 if received from domestic corporations. . . .
Dividends received from foreign sales corporations as determined in 26 U.S.C. §922 (see instructions)
Amount of the oil/gas depletion allowance provided by §40-18-16 that exceeds the federal allowance (see instructions)
21
Additional Alabama depreciation related to Economic Stimulus Act of 2008 (see instructions)
22
Exemption of gain under §40-18-8.1 (Tech Company) (see instructions)
23
24
25
Total deductions (add lines 12 through 24)
26TOTAL RECONCILIATION ADJUSTMENTS (subtract line 25 from line 11 above).
Enter here and on line 3, page 1 (enclose a negative amount in parentheses)
26 •
Schedule B
Alabama Net Operating Loss Carryforward Calculation (§40-18-35.1, Code of Alabama 1975)
Column 1
Column 2
Column 3
Column 4
Column 5
Column 6
Loss Year End
Amount of Alabama
Amount used in years
Amount used
Remaining unused
Acquired
MM / DD / YYYY
net operating loss
prior to this year
this year
NOL
Alabama net operating loss (enter here and on line 13, page 1).
*2100032C*
PAGE 3
Schedule C
Allocation of Nonbusiness Income, Loss, and Expense – Use only if you checked Filing Status 2, page 1
Identify by account name and amount, all items of nonbusiness income, loss and expense removed from apportionable income and those items which are directly allocable to Alabama. Adjustment(s) must also be made for any proration of expenses under Alabama Income Tax Rule 810-27-1-.01, which states, “Any allowable deduction that is applicable to both business and nonbusiness income of the taxpayer shall be prorated to each class of income in determining income subject to tax as provided…” (See instructions.)
ALLOCABLE GROSS INCOME / LOSS
RELATED EXPENSE
NET OF RELATED EXPENSE
DIRECTLY ALLOCABLE ITEMS OF
Column A
Column B
Column C
Column D
Column E
Column F
NONBUSINESS INCOME OR LOSS
Everywhere
Alabama
1a •
b •
c •
d •
e •
2 NET NONBUSINESS INCOME / LOSS
Enter Column E total ((income)/loss) on line 5 of page 1. Enter Column F total (income/(loss)) on line 9 of page 1
Schedule D-1
Apportionment Factor – Use only if Filing Status 2 or Filing Status 5, page 1 with Multi-State Operations –
Amounts must be Positive (+) Values
SALES
ALABAMA
EVERYWHERE
Gross receipts from sales
. . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . •
Dividends
Interest
Rents
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Royalties
Gross proceeds from capital and ordinary gains . . .
Other •
(Federal 1120, line •
) •
Total Sales
. . 8a •
8b •
Line 8a/8b = ALABAMA APPORTIONMENT FACTOR (Enter here and on line 7, page 1) . .
. . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . .
Schedule D-2
Percentage of Sales – Use only if you checked Filing Status 3, page 1 – See instructions
DO NOT USE THIS SCHEDULE IF ALABAMA SALES EXCEED $100,000.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Tax due (multiply line 1, Alabama by .0025) (enter here and on page 1, line 15)
*2100042C*
PAGE 4
Schedule E
Federal Income Tax (FIT) Deduction/(Refund)
Only method 1552(a)(1) can be used to calculate the Federal Income Tax Deduction.
(a)If this corporation is an accrual-basis taxpayer and files a separate (nonconsolidated) federal income tax return with the IRS, skip to line 6 and enter the amount of federal income tax liability shown on Form 1120.
(b)If this corporation is a cash-basis taxpayer and files a separate (nonconsolidated) federal income tax return with the IRS, skip to line 6 and
enter the amount of federal income tax paid during the year.
(c)If this corporation is a member of an affiliated group which files a consolidated federal return, enter the separate company income from line 30 of the proforma 1120 for this company on line 1. You must complete lines 1-5 before moving on to line 6.
Items excluded from Alabama Taxable Income must be added to adjusted total income on line 8b to calculate the Federal Income Tax deduction. (This includes any amounts listed on Schedule A lines 13, 14, 17, 18, and 19).
This company’s separate federal taxable income
Total positive consolidated federal taxable income
This company’s percentage (divide line 1 by line 2)
Consolidated federal income tax (liability/payment)
Federal income tax for this company (multiply line 3 by line 4)
Federal income tax to be apportioned
Alabama income, page 1, line 10
8a Adjusted total income, page 1, line 4
8a •
8b Income excluded from Alabama Taxable Income (include any amounts listed on Schedule A lines 13, 14, 17, 18, and 19)
8c Adjusted Total Income including items excluded from Alabama Taxable Income (Add lines 8a and 8b)
8c
Federal income tax ratio (divide line 7 by line 8c)
Federal income tax apportioned to Alabama (multiply line 6 by line 9)
Less refunds or adjustments
12 Net federal income tax deduction / <refund> (enter here and on Page 1, line 11a)
Other Information
1.Briefly describe your Alabama operations. •
2.List locations of property within Alabama (cities and counties). •
3.List other states in which corporation operates, if applicable. •
4.Indicate your tax accounting method:
• 6 Accrual • 6 Cash • 6 Other •
5.If this corporation is a member of an affiliated group which files a consolidated federal return, the following information must be provided:
(a)Copy of Federal Form 851, Affiliations Schedule. Identify by asterisk or underline the names of those corporations subject to tax in Alabama.
(b)Signed copy of consolidated Federal Form 1120, pages 1-6, as filed with the IRS.
(c)Copy of the spreadsheet of income statements; all supporting schedules for all legal entities that file as part of the consolidated federal group including (but not limited to) a copy of the spreadsheet of income statements (which includes a separate column that identifies the eliminations and adjustments used in completing the federal consolidated return), beginning and ending balance sheets, Schedule M-3 for the entire federal consolidated group.
(d)Copy of federal Schedule K-1 for each tax entity that the corporation holds an interest in at any time during the taxable year.
(e)Copy of federal Schedule(s) UTP.
6.Enter this corporation’s federal net income (see instructions for page 1, line 1) for the last three (3) years, as last determined (e.g.: per amended federal return or IRS audit).
2020 •___________________
2019 •_________________ 2018 •___________________
7.
Check if currently being audited by the IRS. • 6 If so, enter the periods: •________________________________________________
8.
Location of the corporate records:
Street address: •
City: •
State: •
ZIP: •
9.
Person to contact for information concerning this return:
Name: •
Email Address: •
Telephone: • (
10.
Files Business Privilege Tax Return. • 6
FEIN: •
/
11.
State of Incorporation: •
Date of Incorporation: •
Date Qualified in Alabama: •
Nature of business in Alabama: •
Paid
Preparer’s
Use Only
Preparer’s signature
Firm’s name (or yours,
if self-employed)
and address
Preparer’s Tax Identification Number
Check if
•6 •
self-employed
Tel. No. • (
E.I. No. •
ZIP Code •
PAGE 5
Non-payment returns,
Alabama Department of Revenue
Payment returns, mail with
mail to:
Income Tax Administration Division
payment voucher (Form BIT-V) to:
Corporate Tax Section
PO Box 327430
PO Box 327435
Montgomery, AL 36132-7430
Montgomery, AL 36132-7435
Federal audit change
returns, mail to:
Income Tax Administration Divisionn
PO Box 327451
Montgomery, AL 36132-7451
When it comes to managing corporate responsibilities, accurately completing tax returns is non-negotiable. Focusing on the Alabama 20C Corporation Income Tax Return, this form is an essential document for corporations operating within Alabama, whether solely in-state or on a multistate basis. The accuracy of this form is critical as it includes detailed information on the corporation's income, deductions, and tax payable to the state. To aid in this process, the following steps have been outlined to ensure that the form is filled out correctly and efficiently.
Following these steps diligently will help ensure the Alabama 20C Corporation Income Tax Return is completed accurately and in compliance with state requirements. Doing so not only fulfills the legal obligation but also facilitates a smoother tax processing period.
What is the Alabama 20C form used for?
The Alabama 20C form is the Corporation Income Tax Return form that corporations operating in Alabama must file with the Alabama Department of Revenue. It is used to report the corporation's income, calculate its income tax liability, and record payments or credits. This form applies to corporations operating only within Alabama, multistate corporations, and those filing as part of a consolidated federal return.
Who needs to file the Alabama 20C form?
Any corporation that has generated income within the state of Alabama must file the 20C form. This includes corporations operating solely in Alabama as well as multistate corporations that have business activities in Alabama. Additionally, entities that are part of a consolidated federal return may need to file this form if their business operations have an impact on their Alabama income tax.
When is the Alabama 20C form due?
The filing deadline for the Alabama 20C form is aligned with the federal deadline for corporate income tax returns, which is typically on April 15th for calendar year filers. For corporations that operate on a fiscal year basis, the return must be filed on or before the 15th day of the fourth month following the end of their tax year. If the due date falls on a weekend or a legal holiday, the deadline is extended to the next business day.
How is the Alabama apportionment factor calculated on the Alabama 20C form?
The Alabama apportionment factor is used by multistate corporations to determine what portion of their income is subject to Alabama income tax. It is calculated using Schedule D-1 of the form, which takes into account the corporation's property, payroll, and sales within Alabama compared to its overall activity everywhere. The apportionment factor is the sum of the property, payroll, and sales factors, divided by three. This factor is then applied to the corporation's total income to find the amount of income apportioned to Alabama.
What are some common adjustments made on the Alabama 20C form?
Common adjustments on the Alabama 20C form involve reconciling federal taxable income to Alabama taxable income, as outlined in Schedule A. Adjustments include adding state and local income taxes deducted on the federal return, adding or subtracting differences in depreciation methods between federal and Alabama law, and adding back certain types of interest or dividends exempt from federal tax but taxable in Alabama.
What should be done if an error is discovered on a filed Alabama 20C form?
If an error is discovered on a filed Alabama 20C form, the corporation should file an amended return. The amended return corrects the information and recalculates the tax liability. Instructions for filing an amended return are available from the Alabama Department of Revenue. It is important to include a clear explanation of the changes and to attach any supporting documentation. Any additional tax due should be paid with the amended return to avoid penalties and interest.
Filling out any tax form can be a daunting task, and the Alabama 20C Corporation Income Tax Return is no exception. Many often overlook some intricate parts of the process, which can lead to errors. Here are nine common mistakes individuals make when completing the form:
While the intricacies of the Alabama 20C form demand meticulous attention to detail, individuals can avoid these common pitfalls through careful review and understanding of the instructions. When in doubt, consulting with a tax professional can help ensure accuracy and compliance with Alabama tax laws.
Completing the Alabama 20C Corporation Income Tax Return often requires supplementary documents to ensure accuracy and compliance. These documents are critical in providing a comprehensive view of a corporation's financial activities within the state of Alabama. Understanding each document's purpose can streamline the process and avoid potential issues.
Each of these documents plays a role in the transparent and accurate reporting of a corporation's tax obligations. By efficiently preparing and incorporating these forms, corporations can better navigate the complexities of Alabama’s tax code, potentially leading to favorable tax considerations and compliance assurance.
The Alabama 20C form is similar to the Federal Form 1120 used by corporations to report their income, gains, losses, deductions, and credits to the Internal Revenue Service (IRS). Both documents serve as income tax returns for their respective jurisdictions – the Alabama 20C for the state of Alabama and the Federal Form 1120 for the federal government. They are structured to collect essential financial information from corporations to calculate tax liability based on reported income. Each form requires the disclosure of revenue, the cost of goods sold, operating expenses, and net income. They also include schedules for detailed reporting of specific income types, deductions, and credits unique to their tax laws.
In addition, the Alabama 20C form shares similarities with the Federal Schedule K-1, particularly when it requires information about the distribution of income, deductions, and credits to shareholders. Schedule K-1 is part of the IRS Form 1065, which is used by partnerships to report the income passed through to each partner. Although corporations and partnerships are different types of entities with distinctive tax reporting requirements, both the Alabama 20C form and Federal Schedule K-1 focus on allocating specific financial items to stakeholders. This allocation is crucial for stakeholders to accurately report their share of income or loss on their personal tax returns. The similarity lies in the function of attributing the entity's financial activity to its owners, albeit under different tax structures and regulations.
When completing the Alabama 20C form for Corporation Income Tax Return, it's important to navigate the process with attention to detail and a clear understanding of the required information. To ensure accuracy and compliance, here are essential dos and don'ts:
By following these guidelines, you can navigate the complexities of the Alabama 20C form more smoothly and ensure a compliant and accurately filed corporation income tax return.
Many people have misunderstandings about the Alabama 20C Corporation Income Tax Return. Here are ten misconceptions and the truths behind them:
Understanding these key points can help ensure that the Alabama 20C Corporation Income Tax Return is filed correctly and that corporations take advantage of all relevant deductions and credits available under Alabama tax law.
Here are key takeaways about filling out and using the Alabama 20C form:
It is crucial to review the instructions for each section and schedule of the Alabama 20C form to ensure accuracy and completeness of the tax return. This form is a comprehensive document requiring detailed financial information about the corporation's operations, income, deductions, and taxes. Proper completion and submission in compliance with Alabama Department of Revenue guidelines are essential.
How to Get Power of Attorney in Alabama - The MVT 5-13 serves as a critical facilitator for individuals unable to personally manage their vehicle transactions.
Athletic Physical Form - Provide a physician’s clearance statement as mandated by AHSAA, certifying the student's readiness for interscholastic athletics.
Alabama P-ebt - Applicants must list all household members and indicate their relationship, income status, and other relevant details.