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  • When are corporations required to pay electronically?

When are corporations required to pay electronically?

If the payment is $750 or more, payments must be made electronically. For more information, visit ADOR’s Make A Payment Page or call the EFT unit at 1-877-256-2447 or (334)353-7659.

New taxpayers, who have recently created a corporate income tax account, will receive an Online Filing Information letter. The Online Filing Information letter is for information purposes only and provides the taxpayer with the account number, Sign-on ID, and Access Code which will allow the taxpayer to create an account at My Alabama Taxes (MAT).

NOTE: Corporate income tax returns cannot be filed on MAT.

Electronic Payment Options Available:

ACH Debit– Taxpayers making e-payments via ACH Debit must have a Sign On ID and Access Code to login to My Alabama Taxes (MAT) . Pre-registration is not necessary to make a payment on an invoice or assessment.
ACH Credit– Taxpayers making e-payments via ACH Credit must be pre-approved by ADOR. To register, complete and submit Form EFT: EFT Authorization Agreement Form .
Alabama Interactive– The Department will accept e-payments for estimated and automatic extension payments through Alabama Interactive. Visit Tax Estimation or Tax Extension .
Official Payments– The Department will accept credit card payments through Official Payments Corporation. Visit Official Payments Corporation . There is a convenience fee for credit card payments. The fee is based on the amount of the tax payment and is paid directly to Official Payments Corporation.
Value Payment Systems– The Department will accept credit card payments through Value Payment Systems. You may choose to use your Discover/Novus, MasterCard or Visa card. Value Payment Systems does not accept the American Express card but has a program called BillMeLater. Visit Pay AL Tax . There is a convenience fee for this service. The fee is based on the amount of the tax payment and is paid directly to Value Payment Systems.

If the payment is $750 or more, payments must be made electronically. For more information, visit ALDOR’s Make A Payment Page or call the EFT unit at 1-877-256-2447 or 334-353-7659.

New taxpayers, who have recently created a corporate income tax account, will receive an Online Filing Information letter. The Online Filing Information letter is for information purposes only and provides the taxpayer with the account number, Sign-on ID, and Access Code which will allow the taxpayer to create an account at My Alabama Taxes.

NOTE: Corporate income tax returns cannot be filed on My Alabama Taxes.

Electronic Payment Options Available:

  • ACH Credit – Taxpayers may remit tax payments by electronic funds transfer (EFT). The taxpayer must be pre-approved by ALDOR. To register, complete and submit Form EFT: EFT Authorization Agreement Form or call the EFT unit at 1-877-256-2447 or 334-353-7659.  For more information on EFT, please go to ALDOR’s Pay by EFT/ACH Page.
  • ACH Debit – Taxpayers making e-payments via ACH Debit must have a Sign On ID and Access Code to login to  My Alabama Taxes. Pre-registration is not necessary to make a payment on an invoice or assessment.

New taxpayers, who have recently registered with the Alabama Secretary of State, will receive an Online Filing Information letter. The Online Filing Information letter is for “information purposes” and provides the taxpayer with a Sign On ID and Access Code which permits access to My Alabama Taxes.

  • Alabama Interactive – ALDOR will accept e-payments for estimated and automatic extension payments through Alabama Interactive. Visit Tax Estimation or Tax Extension .

Payments less than $750 not remitted electronically must be remitted with Form BIT-V. DO NOT MAIL FORM BIT-V IF THE PAYMENT IS REMITTED ELECTRONICALLY. To obtain Form BIT-V visit revenue.alabama.gov.

 

Related FAQs in Corporate Income Tax

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.

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, then 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.