Flag_of_Alabama.svg
An official website of the Alabama State government.

The .gov means it's official

Government websites often end in .gov or .mil. Before sharing sensitive information, make sure you’re on an official government site.

The site is secure

The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.

The .gov means it's official

Government websites often end in .gov or .mil. Before sharing sensitive information, make sure you’re on an official government site.

The site is secure

The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.

  • Homepage
  • >
  • 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

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.

Organizations referred to in 26 U.S.C. § 501(a), as well as several others organizations referenced in 40-18-32 will not be required to file corporation income tax returns with the Alabama Department of Revenue for as long as they retain their exempt status under applicable Federal and State laws. If they have unrelated business income as determined in accordance with 26 U.S.C. § 512, the organization should file Form 20C with a copy of Federal Form 990T.

To report changes made by the IRS, a corporation must file an amended Form 20C for the specific tax period. The following information MUST be included with the amended return (see Regulation 810-3-40-.01(4)):

If the corporation files as a separate entity:

A complete copy of the revenue agent’s report (RAR) provided by the IRS to include, but not limited to, Form 4549-A, 4549-B and Form 870,
A copy of the Form 20C as originally filed, and
Federal Form 1120 as originally filed and/or amended.

If the corporation is part of a consolidated group, the following information is required along with the above information:

A listing of the IRS adjustments made to each company in the consolidated group,
A copy of the Federal Form 851, Affiliations Schedule,
A copy of the income statement spread for every company, and
A copy of the consolidated Federal 1120 as originally filed and/or amended.
If the IRS audit results in a refund, the request for refund must be made within one year from the date of final determination of the IRS audit. If the audit results in additional tax due, the department can assess the additional tax within one year after the Department has been notified.

For tax years beginning January 1, 2001, the tax rate is 6.5%. For tax years prior to 2001, the tax rate was 5%.