Outline
The Alabama 20C form is a crucial document for corporations operating within the state, serving as the Corporation Income Tax Return. It is designed to capture essential financial information for the tax year, which can run from January 1 to December 31, or another specified tax year. This form requires corporations to disclose their federal business code number and employer identification number, along with their filing status, which may indicate whether they operate solely in Alabama or across multiple states. Key sections of the form include reporting federal taxable income, adjustments for net operating losses, and reconciliation of federal income to Alabama taxable income. Corporations must also provide details about their apportionable income, which determines how much of their income is taxable in Alabama versus other states. The form includes various schedules, such as Schedule A for reconciliation adjustments and Schedule D-1 for apportionment factors, ensuring that all income is accurately accounted for. Completing the Alabama 20C form correctly is essential for compliance with state tax laws and for determining the corporation's tax liability, which is calculated at a rate of 6.5% on taxable income. Understanding the intricacies of this form is vital for corporations to navigate their tax obligations effectively.
Sample - Alabama 20C Form
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*2100012C*
FEDERAL BUSINESS CODE NUMBER FEDERAL EMPLOYER IDENTIFICATION NUMBER
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NAME •
ADDRESS • SUITE, FLOOR, ETC •
CITY STATE COUNTRY (IF NOT U.S.) 9-DIGIT ZIP CODE
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2021
Alabama
Department of Revenue
20a
20b
20c
20d
20e
20f
20g
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FORM
20C
Corporation Income Tax Return
For the year January 1 – December 31, 2021, or other tax year beginning •_______________________, 2021, ending •_______________________, ________
Filing Status: (see instructions)
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1. Corporation operating only in
Alabama.
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2. Multistate Corporation –
Apportionment (Sch. D-1).
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3. Multistate Corporation –
Percentage of Sales (Sch. D-2).
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4. Multistate Corporation – Separate
Accounting (Prior written approval
required and must be attached).
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5. Proforma Return – files as part of
Alabama Affiliated Group.
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I authorize a representative of the Department of Revenue to discuss my return and attachments with my preparer.
Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief they are
true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
Please
Sign
Here
Check
applicable
box:
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PL 86-272
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Initial
return
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Final
return
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Amended
return
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Federal
audit
change
Signature Title Date Daytime Telephone No.
ADOR
•CY
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•FY
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•SY
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•52/53 WK
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•6 2220AL Attached •6 Schedule of Adjustments to FTI
This company files as part of
•6 consolidated federal group •6 consolidated Alabama group
• Federal Parent Name: FEIN •
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Alabama Parent Name: FEIN •
1 FEDERAL TAXABLE INCOME (see instructions). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2 Federal Net Operating Loss (included in line 1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3 Reconciliation adjustments (from line 26, Schedule A). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4 Federal taxable income adjusted to Alabama Basis (add lines 1, 2 and 3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5 Net nonbusiness (income)/loss – Everywhere (from Schedule C, line 2, col. E) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6 Apportionable income (add lines 4 and 5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7 Alabama apportionment factor (from line 9, Schedule D-1) . . . .
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8 Income apportioned to Alabama (multiply line 6 by line 7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9 Net nonbusiness income/(loss) – Alabama (from Schedule C, line 2, col. F). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10 Alabama income before federal income tax deduction (line 8 plus line 9). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11a Federal income tax deduction /(refund) (from line 12, Schedule E). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
b Small Business Health Insurance Premiums (see instructions) . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12 Alabama income before net operating loss (NOL) carryforward (line 10 less lines 11a and b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13 Alabama NOL deduction (see instructions). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14 Alabama taxable income (line 12 less line 13). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15 Alabama Income Tax (6.5% of line 14). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16 LIFO Reserve Tax Deferral (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17 Alabama Income Tax after LIFO Reserve Tax Deferral (line 15 less line 16) . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18 Nonrefundable Credits (from Schedule BC, Section E, line E3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
19 Net tax due Alabama (line 17 less line 18) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
20 Payments:
a Carryover from prior year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
b Current year's estimated tax payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
c Current year's Composite Payment(s)/Electing Pass-Through Entity Credit(s) from
Schedule CP-B, line 3 (see instructions) . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
d Extension payment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
e Payments prior to adjustment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
f Refundable credits (from Schedule BC, Section F, line F3) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
g Total Payments (add lines 20a through 20f). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
21 Reductions/applications of overpayments
a Credit to subsequent year's estimated tax. .
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b Penny Trust Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
c Penalty due (see instructions) Late Payment Estimate Other
d Interest due (see instructions) Estimate Interest Interest on Tax
e Total reductions (total lines 21
a, b, c and d). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
22 Total amount due/(refund) (line 19 less 20g, plus 21e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
If you paid electronically check here:
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UNLESS A COPY OF THE
FEDERAL RETURN IS
ATTACHED, THIS RETURN
WILL BE CONSIDERED
INCOMPLETE. (SEE ALSO
PAGE 4, OTHER
INFORMATION, NO. 5.)
CHECK ONLY ONE BOX. The taxpayer files the following form for federal purposes:
•6 1120 •6 1120-F •6 1120-REIT •6 990/990T •6 Other
Reset Form
*2100022C*
ADDITIONS
1 State and local income taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2 Federal exempt interest income (other than Alabama) on state, county and municipal obligations (everywhere) . . . . . . . . . . . . . . . . . .
3 Dividends from corporations in which the taxpayer owns less than 20 percent of stock to the extent properly deducted on
federal income tax return (see instructions). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4 Federal depreciation on pollution control items previously deducted for Alabama (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5 Net income from foreclosure property pursuant to §10A-10-1.21 (real estate investment trust). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6 Related members interest or intangible expenses or costs. From Schedule AB (see instructions).
Total Payments 6a • minus
Exempt Amount 6b • equals
7 Captive REITS: Dividends Paid Deduction (from federal Form 1120-REIT) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8 Contributions not deductible on state income tax return due to election to claim state tax credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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11 Total additions (add lines 1 through 10). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DEDUCTIONS
12 Refunds of state and local income taxes (due to overpayment or over accrual on the federal return) . . . . . . . . . . . . . . . . . . . . . . . . . . .
13 Interest income earned on direct obligations of the United States. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14 Interest income earned on obligations of Alabama or its subdivisions or instrumentalities to extent included in
federal income tax return (see instructions). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15 Aid or assistance provided to the Alabama State Industrial Development Authority pursuant to §41-10-44.8(d) . . . . . . . . . . . . . . . . . . .
16 Expenses not deductible on federal income tax return due to election to claim a federal tax credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17 Dividends described in 26 U.S.C. §78 from corporations in which taxpayer owns more than 20% of stock (see instructions). . . . . . . . .
18 Dividend income – more than 20% stock ownership (including that described in 26 U.S.C. §951) from non-U.S.
corporations to the extent the dividend income would be deductible under 26 U.S.C. §243 if received from domestic corporations. . . .
19 Dividends received from foreign sales corporations as determined in 26 U.S.C. §922 (see instructions). .
. . . . . . . . . . . . . . . . . . . . . . .
20 Amount of the oil/gas depletion allowance provided by §40-18-16 that exceeds the federal allowance (see instructions). . . . . . . . . . . .
21 Additional Alabama depreciation related to Economic Stimulus Act of 2008 (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
22 Exemption of gain under §40-18-8.1 (Tech Company) (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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25 Total deductions (add lines 12 through 24) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
26 TOTAL RECONCILIATION ADJUSTMENTS (subtract line 25 from line 11 above).
Enter here and on line 3, page 1 (enclose a negative amount in parentheses). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ADOR
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Schedule B
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6c
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ALABAMA 20C – 2021
PAGE
2
§40-18-33, Code of Alabama 1975, defines Alabama Taxable Income as federal taxable income without the benefit of the federal net operating loss plus specific
additions and less specific deductions. The specific additions and deductions are reflected in the lines provided below. Other reconciliation items include transition
adjustments to prevent duplicate deduction or duplicate taxation of items previously deducted or reported on Alabama income tax returns.
Schedule A
Reconciliation Adjustments of Federal Taxable Income to Alabama Taxable Income
Alabama Net Operating Loss Carryforward Calculation (§40-18-35.1, Code of Alabama 1975)
Alabama net operating loss (enter here and on line 13, page 1). •
Amount of Alabama
net operating loss
Loss Year End
MM / DD / YYYY
Acquired
NOL
Amount used in years
prior to this year
Amount used
this year
Remaining unused
net operating loss
Column 2Column 1 Column 6Column 3 Column 4 Column 5
*2100032C*
1 Gross receipts from sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2 Dividends. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3 Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4 Rents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5 Royalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6 Gross proceeds from capital and ordinary gains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7 Other • (Federal 1120, line
• )
8 Total Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9 Line 8a/8b = ALABAMA APPORTIONMENT FACTOR (Enter here and on line 7, page 1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Identify by account name and amount, all items of nonbusiness income, loss and expense removed from apportionable income and those items which are directly allocable to
Alabama. Adjustment(s) must also be made for any proration of expenses under Alabama Income Tax Rule 810-27-1-.01, which states, “Any allowable deduction that is
applicable to both business and nonbusiness income of the taxpayer shall be prorated to each class of income in determining income subject to tax as provided…” (See
instructions.)
2 NET NONBUSINESS INCOME / LOSS
Enter Column E total ((income)/loss) on line 5 of page 1. Enter Column F total (income/(loss)) on line 9 of page 1 . . . . . . . . . . . . . .
SALES
ALABAMA 20C – 2021
PAGE
3
Schedule C
Allocation of Nonbusiness Income, Loss, and Expense – Use only if you checked Filing Status 2, page 1
Schedule D-1
Apportionment Factor – Use only if Filing Status 2 or Filing Status 5, page 1 with Multi-State Operations –
Amounts must be Positive (+) Values
Column A
Everywhere
ALLOCABLE GROSS INCOME / LOSS NET OF RELATED EXPENSERELATED EXPENSE
DIRECTLY ALLOCABLE ITEMS OF
NONBUSINESS INCOME OR LOSS
Column C
Everywhere
Column E
Everywhere
Column B
Alabama
Column D
Alabama
Column F
Alabama
1a
b
c
d
e
Column E
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Column F
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8b8a
ALABAMA EVERYWHERE
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DO NOT USE THIS SCHEDULE IF ALABAMA SALES EXCEED $100,000.
1 Gross receipts from sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2 Tax due (multiply line 1, Alabama by .0025) (enter here and on page 1, line 15) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Schedule D-2
Percentage of Sales – Use only if you checked Filing Status 3, page 1 – See instructions
ALABAMA EVERYWHERE
ADOR
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*2100042C*
1. Briefly describe your Alabama operations. •
2. List locations of property within Alabama (cities and counties). •
3. List other states in which corporation operates, if applicable. •
4. Indicate your tax accounting method:
•
6
Accrual •
6
Cash •
6
Other •
5. If this corporation is a member of an affiliated group which files a con soli dated federal return, the following information must be provided:
(a) Copy of Federal Form 851, Affiliations Schedule. Identify by asterisk or underline the names of those corporations subject to tax in Alabama.
(b) Signed copy of consolidated Federal Form 1120, pages 1-6, as filed with the IRS.
(c) Copy of the spreadsheet of income statements; all supporting schedules for all legal entities that file as part of the consolidated federal group
including (but
not limited to) a copy of the spreadsheet of income statements (which includes a separate column that identifies the eliminations and adjustments used in completing
the federal consolidated return), beginning and ending balance sheets, Schedule M-3 for the entire federal consolidated group.
(d) Copy of federal Schedule K-1 for each tax entity that the corporation holds an interest in at any time during the taxable year.
(e) Copy of federal Schedule(s) UTP.
6. Enter this corporation’s federal net income (see instructions for page 1, line 1) for the last three (3) years, as last determined (e.g.: per amended federal return or IRS audit).
2020 •___________________ 2019 •_________________ 2018 •___________________
7. Check if currently being audited by the IRS. •
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If so, enter the periods: •________________________________________________
8. Location of the corporate records: Street address: •
City: • State: • ZIP: •
9. Person to contact for information concerning this return:
Name: • Email Address: • Telephone: • ( )
10. Files Business Privilege Tax Return. •
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FEIN: •
11. State of Incorporation: • Date of Incorporation: • Date Qualified in Alabama: •
Nature of business in Alabama: •
1 This company’s separate federal taxable income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2 Total positive consolidated federal taxable income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3 This company’s percentage (divide line 1 by line 2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4 Consolidated federal income tax (liability/payment) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . .
5 Federal income tax for this company (multiply line 3 by line 4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6 Federal income tax to be apportioned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7 Alabama income, page 1, line 10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8a Adjusted total income, page 1, line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . .
8b Income excluded from Alabama Taxable Income (include any amounts listed on Schedule A lines 13, 14, 17, 18, and 19) . . . . . . . . . . . . . . . .
8c Adjusted Total Income including items excluded from Alabama Taxable Income (Add lines 8a and 8b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9 Federal income tax ratio (divide line 7 by line 8c) . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10 Federal income tax apportioned to Alabama (multiply line 6 by line 9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11 Less refunds or adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12 Net federal income tax deduction / <refund> (enter here and on Page 1, line 11a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PAGE 4
Other Information
Schedule E
Federal Income Tax (FIT) Deduction/(Refund)
ALABAMA 20C – 2021
Only method 1552(a)(1) can be used to calculate the Federal Income Tax
Deduction.
(a) If this corporation is an accrual-basis taxpayer and files a separate
(nonconsolidated) federal income tax return with the IRS, skip to line 6 and
enter the amount of federal income tax liability shown on Form 1120.
(b) If this corporation is a cash-basis taxpayer and files a separate
(nonconsolidated) federal income tax return with the IRS, skip to line 6 and
enter the amount of federal income tax paid during the year.
(c) If this corporation is a member of an affiliated group which files a consolidated federal
return, enter the separate company income from line 30 of the proforma 1120 for this
company on line 1. You must complete lines 1-5 before moving on to line 6.
Items excluded from Alabama Taxable Income must be added to adjusted total income
on line 8b to calculate the Federal Income Tax deduction. (This includes any amounts
listed on Schedule A lines 13, 14, 17, 18, and 19).
1
2
3
4
5
6
7
8a
8b
8c
9
10
11
12
%
%
ADOR
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Date Preparer’s Tax Identification Number
Check if
• self-employed •
6
•
Tel. No. • ( ) E.I. No. •
ZIP Code •
Paid
Preparer’s
Use Only
Preparer’s
signature
Firm’s name (or yours,
•
if self-employed)
and address •
/ // /
Non-payment returns, Alabama Department of Revenue Payment returns, mail with Alabama Department of Revenue
mail to: Income Tax Administration Division payment voucher (Form BIT-V) to: Income Tax Administration Division
Corporate Tax Section Corporate Tax Section
PO Box 327430 PO Box 327435
Montgomery, AL 36132-7430 Montgomery, AL 36132-7435
Federal audit change
returns, mail to: Alabama Department of Revenue
Income Tax Administration Divisionn
Corporate Tax Section
PO Box 327451
Montgomery, AL 36132-7451
PAGE 5
ALABAMA 20C – 2021
ADOR
Form Information
| Fact Name | Detail |
|---|---|
| Form Purpose | The Alabama 20C form is used for filing the Corporation Income Tax Return for corporations operating in Alabama. |
| Tax Year | This form is applicable for the tax year beginning January 1 and ending December 31, 2010, or for other specified tax years. |
| Filing Status Options | Corporations can select from various filing statuses, including single-state, multistate initial, final, separate, and amended returns. |
| Federal Business Code | Corporations must provide their Federal Business Code Number and Federal Employer Identification Number (FEIN) on the form. |
| Alabama Apportionment Factor | The form includes a section to calculate the Alabama apportionment factor, which determines how much income is taxable in Alabama. |
| Governing Law | The Alabama 20C form is governed by §40-18-33 of the Code of Alabama 1975, which outlines the definition of Alabama Taxable Income. |
| Net Operating Loss (NOL) | Corporations can calculate and carry forward their Alabama Net Operating Loss, as detailed in Schedule B of the form. |
| Credits and Deductions | The form allows for various credits and deductions, including the federal income tax deduction and specific Alabama tax credits. |
| Submission Requirements | A complete return must include all required schedules and attachments; otherwise, it may be deemed incomplete by the Alabama Department of Revenue. |
Detailed Guide for Filling Out Alabama 20C
Completing the Alabama 20C form involves several steps to ensure accurate reporting of corporate income. Gather all necessary financial documents and information before starting. This will help streamline the process and minimize errors.
- Enter the corporation's name and address in the designated fields.
- Provide the federal business code number and federal employer identification number (FEIN).
- Select the appropriate filing status by checking the applicable boxes.
- Fill in the state of incorporation, date of incorporation, and date qualified in Alabama.
- Describe the nature of the business conducted in Alabama.
- If applicable, indicate if the corporation is part of a multistate return and provide necessary details.
- Complete the income section by reporting federal taxable income and any adjustments.
- Calculate and enter the Alabama apportionment factor based on the provided schedules.
- Determine the Alabama taxable income and calculate the tax due.
- Complete the payment section, including any credits or deferrals applicable to the current tax year.
- Sign and date the form, authorizing a representative to discuss the return if necessary.
- Ensure all required attachments are included before submission.
Obtain Answers on Alabama 20C
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What is the Alabama 20C form?
The Alabama 20C form is the Corporation Income Tax Return specifically designed for corporations operating in Alabama. It is used to report income, calculate tax liability, and determine any applicable credits or deductions for the tax year. This form must be filed by corporations that are either solely based in Alabama or operate across multiple states.
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Who needs to file the Alabama 20C form?
Any corporation that is doing business in Alabama must file the Alabama 20C form. This includes corporations that are incorporated in Alabama as well as those that are incorporated elsewhere but have a business presence in the state. Additionally, corporations that are part of a consolidated federal return must also file this form, indicating their status accordingly.
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What are the filing deadlines for the Alabama 20C form?
The deadline for filing the Alabama 20C form is typically the 15th day of the 4th month following the end of the corporation’s tax year. For most corporations with a calendar year ending December 31, the due date would be April 15 of the following year. If the due date falls on a weekend or holiday, the deadline is extended to the next business day.
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What information is required to complete the Alabama 20C form?
To complete the Alabama 20C form, corporations must provide various details, including:
- Federal Employer Identification Number (FEIN)
- Federal Business Code Number
- Filing status (e.g., initial, final, amended)
- Federal taxable income
- Adjustments for Alabama taxable income
- Information on nonbusiness income and losses
- Details of any credits or deductions claimed
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How is the Alabama income tax calculated on the 20C form?
The Alabama income tax is calculated at a rate of 6.5% on the corporation's taxable income after making necessary adjustments for Alabama tax purposes. The form includes specific lines to report federal taxable income, adjustments, and any nonbusiness income or losses that affect the taxable amount. Corporations must carefully follow the instructions to ensure accurate calculations.
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What should a corporation do if it cannot meet the filing deadline?
If a corporation cannot meet the filing deadline, it may request an automatic extension. This can typically be done by filing Form 20C with the appropriate payment of estimated taxes owed. However, it is important to note that an extension to file is not an extension to pay any taxes due. Late payments may incur penalties and interest.
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Where can a corporation submit the Alabama 20C form?
The completed Alabama 20C form should be mailed to the Alabama Department of Revenue at the designated address for corporate tax returns. For most corporations, this is:
Individual and Corporate Tax Division
Corporate Tax Section
PO Box 327435
Montgomery, AL 36132-7435Corporations should ensure that they include any required attachments, such as copies of federal returns, to avoid delays or issues with processing.
Common mistakes
Filling out the Alabama 20C form can be a complex process, and mistakes can lead to delays or complications. One common error is failing to provide the correct Federal Employer Identification Number (FEIN). This number is crucial for identification and should match what the IRS has on file. Double-check this number to avoid potential issues.
Another frequent mistake involves selecting the wrong filing status. The form includes multiple options, such as "Initial," "Final," or "Amended." Selecting the incorrect status can result in the return being processed incorrectly. Ensure that the chosen status accurately reflects the corporation's situation for the tax year.
People often forget to include the state of incorporation and the date of incorporation. These details are essential for establishing jurisdiction and should be filled in clearly. Leaving this information blank can lead to processing delays or further inquiries from the Alabama Department of Revenue.
Another common oversight is neglecting to complete the apportionment factor section accurately. This section requires specific calculations based on business operations in Alabama versus other states. Errors here can affect tax liabilities significantly, so it’s crucial to follow the instructions carefully.
Additionally, failing to attach necessary documentation, such as the federal return, can result in the return being deemed incomplete. The form clearly states that without these attachments, the return may not be accepted. Make sure all required documents are included before submission.
Some filers also miscalculate their Alabama taxable income. This mistake often stems from incorrect additions or deductions. It’s vital to review each line carefully to ensure accuracy in calculations, as this can directly impact the tax owed or refund expected.
Another error involves the signature section. The form must be signed by an authorized representative. Incomplete or missing signatures can lead to delays in processing. Always ensure that the signature is present and that the title of the signer is included.
Lastly, many people overlook the contact information for inquiries. Providing a clear point of contact can facilitate communication with the Alabama Department of Revenue should any questions arise. Ensure that this section is filled out completely to avoid unnecessary delays.
Documents used along the form
The Alabama 20C form is a crucial document for corporations filing their income tax returns in Alabama. However, several other forms and documents are often required to accompany it, ensuring compliance with state tax regulations. Below is a list of these forms, each serving a specific purpose in the overall tax filing process.
- Schedule A: This schedule is used to reconcile federal taxable income to Alabama taxable income. It includes specific additions and deductions that must be accounted for to arrive at the correct taxable amount for Alabama.
- Schedule B: This form calculates the Alabama Net Operating Loss (NOL) Carryforward. It details the loss year, end amount, and how much of the NOL is utilized in the current year versus remaining for future use.
- Schedule C: This document allocates nonbusiness income, loss, and expenses. It is utilized when the corporation has income that is not considered part of its business activities, ensuring that such amounts are properly reported and allocated to Alabama.
- Schedule D-1: This schedule calculates the apportionment factor for corporations operating in multiple states. It details the corporation's property, payroll, and sales to determine the appropriate share of income taxable in Alabama.
- Schedule F: This form outlines any credits or exemptions the corporation is claiming, such as the Alabama Enterprise Zone Credit or the Capital Tax Credit. It helps to reduce the overall tax liability by applying eligible credits.
Each of these documents plays a vital role in ensuring that corporations meet their tax obligations accurately and efficiently. Proper completion and submission of these forms alongside the Alabama 20C form can help avoid potential issues with the Alabama Department of Revenue.
Similar forms
The Alabama 20C form, which is used for corporate income tax returns, shares similarities with several other tax-related documents. Each of these forms serves a unique purpose but often contains overlapping information regarding income, deductions, and tax calculations. Below is a list of nine documents that are similar to the Alabama 20C form, along with a brief explanation of how they are alike:
- Federal Form 1120: This is the U.S. Corporation Income Tax Return. Like the Alabama 20C, it requires reporting of corporate income, deductions, and tax liability calculations.
- State Income Tax Returns (Various States): Similar to the Alabama 20C, other states have their own corporate income tax forms that require similar financial disclosures and calculations tailored to their tax laws.
- Form 1120-S: This form is for S Corporations and, like the Alabama 20C, requires reporting of income, deductions, and credits, although it is designed for a different type of corporate structure.
- Form 1065: Used by partnerships, this form also reports income, deductions, and credits. While it serves a different entity type, the structure of financial reporting is somewhat similar to the Alabama 20C.
- Schedule C (Form 1040): This form is for sole proprietorships and reports income and expenses. Like the Alabama 20C, it emphasizes the calculation of taxable income and allowable deductions.
- Form 990: Nonprofit organizations use this form to report financial information. It shares similarities in terms of financial disclosures and transparency but applies to tax-exempt entities.
- Form 1120-REIT: This form is for Real Estate Investment Trusts and, like the Alabama 20C, requires detailed reporting of income, deductions, and distributions to shareholders.
- State Apportionment Schedules: Many states require apportionment schedules that determine how income is divided among states. This is similar to the apportionment information required in the Alabama 20C.
- Form 2553: This is the election form for S Corporation status. While it does not report income, it is a crucial document for corporations that may file the Alabama 20C, emphasizing the structure and tax treatment of the entity.
Dos and Don'ts
When filling out the Alabama 20C form, there are several important dos and don'ts to keep in mind. Here’s a helpful list to guide you through the process:
- Do ensure that all required fields are filled out completely. Missing information can lead to delays or issues with your return.
- Do double-check your Federal Employer Identification Number (FEIN) for accuracy. This number is crucial for proper identification.
- Do review the filing status options carefully. Selecting the correct status can affect your tax calculations.
- Do attach any necessary schedules or documents, such as a copy of your federal return, if required.
- Do keep a copy of your completed form for your records. Having a reference can be helpful for future filings.
- Don't ignore the instructions provided with the form. They contain valuable information that can prevent mistakes.
- Don't submit the form without reviewing it for errors. Simple mistakes can lead to complications.
- Don't forget to sign the form. An unsigned return is considered incomplete.
- Don't overlook deadlines. Timely submission is essential to avoid penalties.
By following these guidelines, you can navigate the Alabama 20C form with confidence and ease.
Misconceptions
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Misconception 1: The Alabama 20C form is only for corporations operating solely in Alabama.
In reality, the form is designed for both single-state and multistate corporations. Multistate corporations must complete additional sections to account for income apportionment across different states.
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Misconception 2: Filing the Alabama 20C form guarantees a tax refund.
Filing does not automatically result in a refund. The outcome depends on various factors, including the corporation's taxable income and any applicable deductions or credits.
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Misconception 3: The Alabama 20C form is the same as the federal corporate tax return.
While there are similarities, the Alabama 20C form has specific requirements and calculations unique to Alabama tax law. Corporations must adjust their federal taxable income to align with Alabama's tax regulations.
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Misconception 4: All deductions available on the federal return apply to the Alabama 20C form.
This is not true. Certain deductions allowed federally may not be applicable at the state level. Corporations must review Alabama's specific tax laws to determine which deductions they can claim.
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Misconception 5: Filing an amended return is unnecessary if no changes were made to the federal return.
Even if the federal return remains unchanged, corporations may still need to amend their Alabama return if they discover errors or if there are changes in state-specific tax laws that affect their taxable income.
Key takeaways
The Alabama 20C form is specifically designed for corporations operating within Alabama or those with multistate operations. Ensure that the correct filing status is selected based on your corporation's operations.
Accurate reporting of federal taxable income is crucial. Lines 1 through 14 require detailed calculations to adjust federal income to reflect Alabama taxable income, including any net operating losses and apportionable income.
Documentation is essential. A copy of the federal return must accompany the Alabama 20C form to avoid the return being considered incomplete. This includes all necessary schedules and supporting documentation.
Be mindful of deadlines. The form must be filed by the due date to avoid penalties and interest. Extensions may be available, but they require timely submission of the appropriate forms.