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View All Business Privilege Tax FAQs

How do I obtain a Certificate of Compliance from Alabama Department of Revenue?

Where to apply-

revenue.alabama.gov
Click Businesses (along top left in dark blue)
Certificate of Compliance (last option in first column, bottom left)
Request a Certificate of Compliance (link within paragraph)
Please Read: Important Information Regarding Certificate of Compliance and Special Notes (in red)
Request a Single Certificate of Compliance
Fee is $10(with an additional $4 service charge)
Payment Options: American Express, Discover, Master Card or Visa

*Sometimes the taxpayer may not know the 6-digit Secretary of State ID. They can enter all nines in that field, but it must be in the correct format, 999-999. Also, if they do not have a FEIN number, they can do the same, but must be in correct format, 99-9999999. In order to ensure accuracy in verifying the entity for compliance, it is not recommended that a request be made without the proper identifying numbers for the entity. Either the correct FEIN or SOS ID must be on the application*

Certificates of Compliance are issued if the Department verifies that an entity has filed all returns required to be submitted and paid the taxes as shown due as payable on those returns.

If an entity has not filed all returns required to be submitted and not paid the taxes as shown due as payable on those returns, the certificate will be denied.

Disregarded entities requesting a Certificate of Compliance must provide their owner’s information (name, FEIN) in order for the Department to be able to verify the income tax filing requirements for the disregarded entity have been met, since the disregarded entity’s income is reported on its owner’s return for income tax purposes. Failure to provide the owner’s information for a Certificate of Compliance request made for a disregarded entity is the number one reason a request for a Certificate of Compliance is erroneously denied.

Where to apply-

revenue.alabama.gov
Click Businesses (along top left in dark blue)
Certificate of Compliance (last option in first column, bottom left)
Request a Certificate of Compliance (link within paragraph)
Please Read: Important Information Regarding Certificate of Compliance and Special Notes (in red)
Request a Single Certificate of Compliance
Fee is $10(with an additional $4 service charge)
Payment Options: American Express, Discover, Master Card or Visa

*Sometimes the taxpayer may not know the 6-digit Secretary of State ID. They can enter all nines in that field, but it must be in the correct format, 999-999. Also, if they do not have a FEIN number, they can do the same, but must be in correct format, 99-9999999. In order to ensure accuracy in verifying the entity for compliance, it is not recommended that a request be made without the proper identifying numbers for the entity. Either the correct FEIN or SOS ID must be on the application*

Certificates of Compliance are issued if the Department verifies that an entity has filed all returns required to be submitted and paid the taxes as shown due as payable on those returns.

If an entity has not filed all returns required to be submitted and not paid the taxes as shown due as payable on those returns, the certificate will be denied.

Disregarded entities requesting a Certificate of Compliance must provide their owner’s information (name, FEIN) in order for the Department to be able to verify the income tax filing requirements for the disregarded entity have been met, since the disregarded entity’s income is reported on its owner’s return for income tax purposes. Failure to provide the owner’s information for a Certificate of Compliance request made for a disregarded entity is the number one reason a request for a Certificate of Compliance is erroneously denied.

Related FAQs in Business Privilege Tax

In Alabama, a resale certificate is officially called a “Sales Tax License”. To get a copy of your Alabama resale certificate or Sales Tax License, you should:

Login to MAT, locate the appropriate tax account, locate and click “Print tax account license” link. If you need help or cannot access your certificate online contact the Alabama Department of Revenue Sales and Use Tax Division for assistance.

Step by Step Instructions for License Renewal

Yes. In accordance with Rule 810-6-1-.144.03: All buyers of property for resale purposes are entitled to purchase at wholesale, tax-free, the property they resell as regular course of business when they have secured the sales tax license required by law. This rule also applies to retailers located outside Alabama when they have secured the sales tax license required by law in the state in which they are located.

A credit card transaction fee is a charge added to the regular price of an item by a retailer when the purchaser pays for the item using a credit card. Other names for this fee include swipe fee, credit card surcharge, processing fee, service charge, or convenience fee.

These fees are subject to sales and use tax and should be included in the seller’s gross sales on retail transactions when calculating tax due. Example: A sale of tangible personal property totals $100. The customer pays with a credit card and is charged a $3 credit card transaction fee. The total price of $103, including the credit card transaction fee, is subject to sales and use taxes.

A credit card fee, even if separately stated, is part of the retailer’s cost of doing business, and the entire consideration for the sale of tangible personal property is subject to sales and use taxes.

If a transaction consists of only non-taxable goods or services, the credit card transaction fee is not subject to sales and use taxes. Example: A customer is charged $50 for a haircut. The customer pays with a credit card and is charged a $3 credit card transaction fee. Since the haircut is not subject to sales and use taxes, the corresponding credit card transaction fee is not subject to sales and use taxes.

When trying to complete title applications for vessels that have inches listed on the MSO, please use this Vessel Length Chart for conversion purposes.

Vessel Length Chart

Yes, Alabama allows resident individuals to claim a tax credit for income taxes imposed by other states. This credit is claimed on Form 40, Schedule CR. A copy of the other state’s return and a copy of the state Schedule K-1 should be included as documentation of this credit.

If the individual does not file an individual income tax return in the other state or the state provides an exclusion of income, include a proforma return calculating the tax at the other state’s rate and a copy of the state Schedule K-1 as documentation of this credit.

Note: Any Pass-Through Entity tax deducted on the Pass-Through Entity’s federal return, which reduces the taxable income reported on the owner’s K-1, should be added back to compute Alabama taxable income.

No, if the current title is an Alabama ELT there is no cost to print a physical title.

However, once an ELT is printed on physical title paper it can not be printed again. A replacement title application must be applied for if a replacement is needed.