The Alabama 20C form is the Corporation Income Tax Return required for businesses operating in Alabama. This form is essential for reporting income and calculating tax obligations for corporations during a specified tax year. To ensure compliance and accurate reporting, businesses should fill out the Alabama 20C form by clicking the button below.
The Alabama 20C form is a crucial document for corporations operating within the state, specifically designed to report income and calculate tax obligations. This form captures a wide array of information, starting with the corporation's basic details, such as its name, address, and federal employer identification number. It distinguishes between corporations that operate solely in Alabama and those that are multistate entities, providing specific sections for apportionment of income. The form also requires corporations to reconcile their federal taxable income with Alabama taxable income, detailing any necessary adjustments for state-specific deductions and additions. Notably, the 20C form includes schedules that address various aspects of income allocation, such as nonbusiness income and net operating losses, ensuring that corporations accurately report their financial activities in compliance with Alabama tax laws. Understanding the intricacies of the 20C form is essential for corporations to navigate their tax responsibilities effectively and avoid potential pitfalls.
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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11a •
11b •
12•
13•
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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
Completing the Alabama 20C form requires careful attention to detail. This step-by-step guide will help ensure that all necessary information is accurately filled out, allowing for a smooth submission process. After filling out the form, it should be submitted to the Alabama Department of Revenue along with any required attachments.
What is the Alabama 20C form?
The Alabama 20C form is the Corporation Income Tax Return for corporations operating in Alabama. It is used to report the income, deductions, and tax liability of a corporation for the tax year. This form is essential for both single-state and multistate corporations to ensure compliance with Alabama tax laws.
Who needs to file the Alabama 20C form?
What information is required on the Alabama 20C form?
What are the filing deadlines for the Alabama 20C form?
What happens if a corporation fails to file the Alabama 20C form?
Completing the Alabama 20C form can be a daunting task, and mistakes can lead to delays or penalties. One common error is failing to include the correct Federal Employer Identification Number (FEIN). This number is crucial for the identification of the corporation. Omitting or incorrectly entering this number can result in processing issues, as the state relies on it to match tax returns with the appropriate business entity.
Another frequent mistake is neglecting to accurately report the filing status. The form requires the filer to check the appropriate box for their corporation's status, whether it is operating solely in Alabama or is a multistate corporation. Misidentifying the filing status can lead to incorrect tax calculations and potential audits. It is essential to carefully read the instructions provided on the form to ensure the correct status is selected.
Additionally, many filers fail to complete the reconciliation adjustments section correctly. This section is vital for aligning federal taxable income with Alabama taxable income. If adjustments are not made or are inaccurately reported, the final tax liability may be incorrect. It is important to double-check all calculations and ensure that the reconciliation items are properly accounted for.
Lastly, some individuals overlook the requirement to attach necessary documentation. For example, if the corporation is part of a consolidated federal return, prior written approval must be included. Incomplete submissions can lead to the return being deemed incomplete, resulting in delays or additional requests for information from the Alabama Department of Revenue. Ensuring all required documents are attached can prevent unnecessary complications.
The Alabama 20C form is a crucial document for corporations filing their income tax returns in Alabama. Along with this form, several other documents are often required to ensure compliance with state tax regulations. Below is a list of common forms and documents that may accompany the Alabama 20C form, each serving a specific purpose in the tax filing process.
Completing the Alabama 20C form accurately, along with the associated schedules and documents, is essential for compliance and to avoid potential penalties. Each form plays a significant role in providing a comprehensive view of the corporation's financial activities and tax obligations in Alabama.
The Alabama 20C form is a corporation income tax return specific to Alabama. It shares similarities with several other tax-related documents. Here are five documents that are comparable to the Alabama 20C form, along with their similarities:
When filling out the Alabama 20C form, it’s important to follow certain guidelines to ensure accuracy and compliance. Here’s a list of what to do and what to avoid:
This is not accurate. While the form is commonly used by Alabama-based corporations, it also applies to multistate corporations. These businesses must report their income and apportion it appropriately, reflecting their operations in Alabama and other states.
In reality, the form has specific instructions and requirements that must be followed. For instance, multistate corporations need to complete additional schedules, such as Schedule D-1 for apportionment and Schedule C for nonbusiness income. Failing to adhere to these instructions can lead to incomplete submissions.
This is misleading. The form mandates that certain documents, such as copies of federal returns and schedules, be attached. If these documents are not included, the return may be deemed incomplete, which can result in penalties or delays.
This assumption overlooks the fact that any corporation, regardless of size, engaged in business activities in Alabama must file. Even small businesses that meet specific criteria are obligated to submit this form to ensure compliance with state tax laws.
When it comes to completing the Alabama 20C form, there are several important aspects to keep in mind. This form is essential for corporations operating in Alabama and serves as the Corporation Income Tax Return. Here are some key takeaways to consider:
Filling out the Alabama 20C form accurately is crucial for compliance and can influence your corporation's tax obligations significantly. Take the time to understand each section and consult with a tax professional if necessary.