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FAQ Categories / Tax: Fiduciary (Form 41)

Estate Tax Waivers are no longer required to be filed for estates whose owners

died after Dec. 31, 2004.

Mandatory e-filing for Form 41 - Rule 810-3-29-.08 was approved by the Alabama Department of Revenue and became effective December 15, 2015. It applies to all fiduciary returns required to be filed for taxable years beginning on and after January 1, 2016.

Mail returns with payments to:

Alabama Department of Revenue

Pass Through Entity Section

P.O. Box 327444

Montgomery, AL 36132-7444

Mail returns without payments to:

Alabama Department of Revenue
Individual and Corporate Tax Division
P.O. Box 327440
Montgomery, AL 36132-7440

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.

Yes. List the name of the entity that paid the composite payment and the FEIN. You may include a copy of the K-1 Form 41 for clarification especially if there is more than one composite payment made on behalf of the estate/trust.

Yes, federal taxes paid by the estate on federal Form 706 may be claimed by the estate in the year they are paid.

Yes, federal income tax paid by the estate or trust is allowed as a deduction on Alabama Form 41.

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 Alabama 1975.

No, there is no opt-out provision for the fiduciary mandate.

The excess loss on termination may not be passed along to the grantor or beneficiary of an estate or irrevocable trust.

No, estimate payments are not required. Voluntary estimate payments should be submitted with a FDT-V Fiduciary Income Tax Payment Voucher.

Yes, these are claimed on page 3, Schedule C, Line 13. Federal charitable deductions are listed in Column A. Alabama Charitable contributions are deductible to the same extent allowed for an individual and shown in Column C.