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  • Does Alabama require quarterly estimated tax payments?

Does Alabama require quarterly estimated tax payments?

Yes. If the corporation’s tax liability is $500 or more, quarterly estimated tax payments are required to be made by the 15th day of the 4th, 6th, 9th, and 12th months of the tax year. Please refer to Alabama Code Section 40-18-80.1 for details on the specific requirements.

Yes. If the corporation’s tax liability is $500 or more, quarterly estimated tax payments are required to be made by the 15th day of the 4th, 6th, 9th, and 12th months of the tax year. Please refer to Alabama Code Section 40-18-80.1 for details on the specific requirements.

Related FAQs in Corporate Income Tax

C-corporations, and those LLCs that have elected to file as a c-corporation, doing business in Alabama or deriving income from sources within Alabama, including income from property located in Alabama and on every corporation licensed or qualified to transact business in Alabama except for those corporations specifically exempted by §40-18-32.

Yes. If the company has registered or qualified to do business in the state, a Form 20C is required to report no activity and/or business activity as provided by Sections 40-18-2 and 40-18-31, Code of Alabama 1975.

Yes. If an extension has been granted for federal purposes, the extension is also granted for Alabama purposes; the Federal Form 7004 must be submitted with the Form 20C.

NOTE: This is an extension for filing purposes ONLY. The full amount of the tax liability is due by the original due date of the return.

Yes. Alabama Code §40-2A-7(c)(2) states, “A petition for refund shall be filed with the department or an automatic refund issued pursuant to Section 40-29-71, or a credit allowed, within (i) three years from the date that the return was filed, or (ii) two years from the date of payment of the tax, whichever is later, or, if no return was timely filed, two years from the date of payment of the tax.”

The corporation should file an Alabama income tax return just as any other corporation. If the income is business income, then the corporation’s pro rata share of the partnerships property, payroll, and sales should be included in the apportionment factor. If the income is nonbusiness, then the income should be allocated to Alabama and/or the appropriate states. See Alabama Rule 810-27-1-.02 Application of Apportionment and Allocation.