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NOTICE Alabama Electing Pass-Through Entity Tax Act Guidance

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  • NOTICE Alabama Electing Pass-Through Entity Tax Act Guidance
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Related Division
Posted: October 20, 2021

The Alabama Electing Pass-Through Entity Tax Act (Act 2021-1 and Act 2021-423) allows Alabama S-Corporations and Subchapter K entities (pass-through entities or PTEs) to elect to pay Alabama income tax at the entity level. Entities making this election (Electing PTEs) must submit Form PTE-E via My Alabama Taxes (MAT). Form PTE-E is expected to go live in January.

To prepare for this new process, all Pass-Through Entities that choose this election must be registered to use MAT and must submit Form PTE-E through MAT prior to the fifteenth day of the third month following the close of that tax year for which the entity elects to be taxed as an Electing Pass-Through Entity.

You will need the following information readily available to sign up for MAT:

  • Account Number: Your ALDOR 10-digit account number (may include letters); this number is located on all correspondence sent from the Alabama Department of Revenue.
  • Sign-On ID: This code was assigned and mailed when the account was originally registered with ALDOR.
  • Access Code: This code was assigned and mailed when the account was originally registered with ALDOR.
  • Valid email address: This is required to receive confirmation emails and authorization code messages.

If you are a new entity without an ALDOR taxpayer account, a new taxpayer/account registration application is required to be completed using MAT. On the MAT logon window, click the “Register a business/obtain a new tax account number” hyperlink in the “Business” section. Select the Pass Through Entity account as the type of account you would like to register for.

If you need assistance setting up an account in MAT or if you have questions related to the election process, contact the Pass-Through Entity Tax section at 334-242-1170, Option 6.

For additional information on Electing Pass-Through Entities, visit https://revenue.alabama.gov/individual-corporate/electing-pass-through-entities/.

Click to download a PDF of this notice.