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Frequently Asked Questions

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How does an entity elect to be treated as a “family limited liability entity” and therefore subject to the $500 cap provided for under the privilege tax statute?
How do I make an estimate payment?
What is a Qualified Volunteer Firefighter?
Why did I receive a Medical Cannabis Privilege Tax Delinquent Notice?
What if a PTE makes estimated payments and does ultimately not make the election to be an Electing PTE for this tax year?
When can I claim the Emergency Responders Tax Credit?
What do I need to do in response to the Medical Cannabis Privilege Tax Delinquent Notice?
How does the pass-through entity determine its tax liability? What is the entity- level tax rate?
What is the amount of the tax credit?
Who is required to file an Alabama Medical Privilege Tax return?
What do I need to do if I received this notice in error?
Are guaranteed payments included in the calculation of taxable income?
 Can I claim more than one credit if I have multiple certifications and/or licenses?
Why is the Alabama Medical Cannabis Privilege Tax levied?
How do I register for My Alabama Taxes? 
Can an electing Pass-Through Entity claim a net operating loss?
How do I apply for the credit?
What is an initial return? When is it due? How do I file?
How do I make a Payment for Medical Cannabis Privilege Tax?
Can an owner, member, partner, or shareholder take a credit for taxes paid by the Electing Pass-Through Entity?
Do I have to apply for the credit every year?
When is the Annual Alabama Medical Cannabis Privilege Tax return due?
What do I need to do in response to the Medical Cannabis Privilege Tax Delinquent Notice?
Can an Electing Pass-Through Entity exclude income attributable to certain owners, i.e. tax-exempt owners, when calculating tax due? 
If I do not have a certificate, where can I get one?
Can I file an extension to obtain more time to file an Alabama Medical Cannabis Privilege Tax return?
Where do I file and pay the Alabama Secretary of State Corporation Annual Report (AL-CAR)?
Do owner’s member, partner, or shareholders of an Electing Pass-Through Entity have a filing requirement?
What happens once I submit my certificate through My Alabama Taxes?
How do I find Medical Cannabis Privilege Tax Forms on the ALDOR website?
How does the pass-through entity make an election to be treated as an Electing Pass-Through Entity? When is a pass-through entity required to make the election?
Can an Electing Pass-Through Entity claim Tax Incentive credits?
How do I claim the credit on my Alabama tax return?
What address do I use to mail the Alabama Medical Cannabis Privilege Tax return?
Can a Pass-Through Entity make an election to be treated as an Electing Pass-Through Entity simply by filing the tax return?
Can an electing Pass-Through Entity pass through Tax Incentive credits to its members? 
What is the Volunteer Emergency Responders Tax Credit?
Does the Alabama Medical Cannabis Privilege Tax return require any attachments?
Can a Pass-Through Entity revoke its election to be treated as an Electing Pass-Through Entity?
Will an Electing Pass-Through Entity still be required to file a composite return, PTE-C, on behalf of nonresident members?
What is the training requirement?
How is an amended Alabama Medical Cannabis Privilege Tax return filed?
What is the Electing Pass-Through Entity Tax return form and when is it due?
Can a taxpayer transfer an overpayment from a composite return (Form PTE-C) to an Electing pass through entity’s account?
What is a Determination Period?
Can a pass-through entity request an extension of time to file its tax return?
Can a pass-through entity with all resident owners elect to be an Electing Pass-Through Entity?
How is the rate for the Medical Cannabis Privilege Tax determined?
Are pass-through entities that elect to pay the Electing Pass-Through Entity Tax required to make estimated tax payments?
What entity types can elect to be treated as an Electing Pass-Through Entity?
How is the federal taxable income for S corporations and limited liability entities determined?
When are estimated tax payments due?
Does Alabama allow a credit for Pass-Through Entity taxes paid to other states?
If you have questions, or need to provide information regarding the Medical Cannabis Privilege Tax, electronic responses, with explanations and attachments, may be sent to:
Will an entity be penalized if estimated tax payments are not made?
What is a Qualified Rescue Squad Member?
If property is transferred to a relocation company, is the relocation company subject to the withholding requirements of Section 40-18-86, Code of Alabama 1975?
Is a buyer required to inquire as to whether a LLC-seller is a “disregarded” entity?
Is a single-member limited liability company (SMLLC) whose status is disregarded for federal income tax purposes considered to be the seller for purposes of Section 40-18-86, Code of Alabama 1975?
One of the conditions for a nonresident seller to be considered a deemed resident under Section 40-18-86, Code of Alabama 1975, is that the seller has filed Alabama income tax returns, or appropriate extensions, for the two income tax years immediately preceding the year of the sale. What if the sale occurs before the due date for the previous year’s income tax return?
Can a nonresident seller qualify as a deemed resident in order to be exempt from withholding, if he satisfies some, but not all of the listed conditions?
If the seller is a corporation, how does it claim the withholding credit since the corporation income tax return does not have a line for tax withheld?
If tax is withheld from a nonresident seller who is a partnership, S corporation, or limited liability company, how does the seller claim credit for the withholding?
Does the withholding required under Code of Alabama 1975, Section 40-18-86, apply to the sale or transfer of timber located in Alabama by a nonresident of Alabama?
If the seller is a financial institution, is the sale subject to withholding?
If the seller is an insurance company, is the sale subject to withholding?
If the seller of the property is an exempt organization, is the sale subject to withholding?
If an Alabama resident relocates to another state and buys another residence, does his Alabama residence cease to be his principal residence for purposes of Alabama law?
Is withholding required on a transaction that qualifies as a Section 1031 exchange under the Internal Revenue Code? What if the transaction is a “deferred” Section 1031 exchange?
Is withholding required on a like-kind exchange of property?
Must a certificate of exemption (Form NR-AF3) be filed when the seller is exempt by law from the withholding requirement?
If the seller is an Alabama resident, must he provide the buyer with a sworn affidavit Form NR-AF1 (or for deemed residency)?
If a buyer reasonably relies on a seller’s sworn affidavit of residency, will the buyer be liable if it later turns out that the seller does not meet the conditions of deemed residency?
Is withholding required when there are several owners, and some of the owners are nonresidents?
Are only transactions which result in taxable income to the seller subject to withholding?