Form 20c-C - Instructions For The Preparation Of Alabama Department Of Revenue Consolidated Corporate Income Tax Return - 2007

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I
F
T
P
FORM
NSTRUCTIONS
OR
HE
REPARATION OF
20C-C
2007
A
D
R
LABAMA
EPARTMENT OF
EVENUE
Consolidated Corporate Income Tax Return
INSTRUCTIONS
What’s New for 2007?
separate apportionment factors and file using the Proforma Form 20C.
The sum of the separate company Alabama taxable income amounts
Form 20C-C. Form 20C-C is new for 2007!
(Sum of line 14, of all Proforma Form 20C’s) are then brought forward to
Form 20C-AAGIS. Alabama Affiliated Group Income Spreadsheet,
line 1 of the Alabama Consolidated Corporate Income Tax Return, Form
is no longer used and will not be accepted for the 2007 tax year.
20C-C, and reported on this single Alabama return for the AAG. Form
Form 20C-AS. Alabama Affiliations Schedule has been included on
20C-C, Consolidated Corporate Income Tax Return, must be filed by all
page 2 of Form 20C-C, Consolidated Corporate Income Tax Return. In
AAG’s with a binding consolidated election. All transactions between and
order for Form 20C-C to be complete, a Proforma Form 20C should be
among members of the AAG shall be reported on an arms length basis.
completed, including all appropriate schedules, for each separate nexus
In addition to the separate company calculation, there may be additional
member of the Alabama Affiliated Group (AAG) and attached behind
expense items with limitations based on Alabama consolidated taxable
Form 20C-C. Any Form 20C-C filed without the completed and attached
income. Credits are not allowed to exceed Alabama consolidated tax-
20C’s for the separate members of the AAG, will be considered
able income.
incomplete.
Estimate/Extension/Informational Requirements for AAG’s:
Note: See Form 20C instructions for additional “What’s New for
All payments made on behalf of or for the AAG are to be paid for and
2007” items and general instructions for using form 20C for the pro-
credited to the account of the AAG parent corporation. Any AAG, which
forma returns of the separate corporations!
has an Alabama income tax liability in the excess of $5,000.00, must pay
the estimated tax based on the current year’s liability. The first payment
Note: DO NOT use Form 20C-C if you are not the parent of the
is due by the 15th day of the 4th month of the taxable year. The 2nd,
Alabama Affiliated Group.
3rd, and 4th filings and payments are due by the 15th day of the 6th,
Form BIT-V. The Alabama Department of Revenue requires the use
9th, and 12th months, respectively. Note: Form 20CD is no longer used
of Form BIT-V, Business Income Tax Voucher to submit payments due
and will not be accepted for the 2007 tax year. Remit estimated tax
with the 2007 business income tax returns and/or the 2008 estimated
payments using Form BIT-V, if the payment is less than $750, and/or
tax payments. See the “Which Form To Use” section of the Form 20C in-
is mailed to the Department. Payments over $750 must be remitted
structions for additional information for Form BIT-V.
electronically. Do not mail in any payment voucher if the payment
Form 20CD, estimated tax payment voucher, is no longer used
is made electronically. To obtain Form BIT-V visit our Web site at
and will not be accepted for the 2008 estimated payments.
Form 20-E. Use this voucher to extend Forms 20C, 20C-C, 20S, 65
Where To File/Payment of Tax:
and PTE-C. Payments of $750 or more must be made electronically. DO
NOT MAIL FORM 20-E IF THE PAYMENT WAS REMITTED
The total amount of the AAG’s income tax liability for the period is
ELECTRONICALLY.
due on or before the unextended due date of the return. If the return is
to be filed under extension, any liability due should be remitted no later
General Information For Consolidated Filing:
than the original due date of the return. Payments of $750 or more must
An AAG may elect to file an Alabama consolidated return. An Ala-
be made electronically. Payments less than $750, may be remitted with
bama consolidated return means an Alabama corporate income tax re-
Form 20-E. DO NOT MAIL FORM 20-E IF THE PAYMENT WAS RE-
turn filed by or on behalf of the members of an AAG. The election is made
MITTED ELECTRONICALLY.
by filing Form 20C-CRE (Election to File Consolidated Corporate Income
ELECTRONIC PAYMENT. §41-1-20 requires electronic payments for
Tax Return). The completed election form must be submitted to the De-
all single business tax payments of $750 or more. Substantial penalties
partment on or before the due date, with extensions, for the first taxable
will be assessed for noncompliance.
year for which the election is applicable. If the common parent (for fed-
Taxpayers making e-payments via ACH Debit must have a Sign On
eral income tax purposes) is not a member of the AAG, the members
ID and Access Code to login to the Alabama Department of Revenue
shall designate to the Department which member of the group shall serve
(ADOR) Paperless Filing & Payment System. In order to receive a Sign
as the AAG’s common parent for Alabama. (Parent must be an Alabama
On ID and Access Code, you must have filed a tax return with the ADOR
nexus group member.) The consolidated election is binding and irrevo-
within the last three years. ACH Debit or Credit users should visit our
cable for a period of 120 consecutive months (10 years), beginning with
Web site at for additional
the first month of the taxable year for which the election is made and
information.
ending with the conclusion of the taxable year in which the 120th con-
secutive month expires.
Electronic Payment Options. The Department will accept electronic
In accordance with §40-18-39, for tax periods beginning January 1,
check (e-check) and credit card payments for corporate income tax
2002, and after, AAG means a group of corporations, each member of
through Official Payments Corporation on the internet. To make a pay-
which is subject to tax under §40-18-31 and Public Law 86-272 which are
ment by e-check go to There is no
members of an Affiliated Group for Federal purposes and file a Federal
fee for this service. To make a payment by credit card go to www.
Consolidated Corporate Income Tax Return. Each member (including
. There is a convenience fee for this service. The fee
the Alabama designated common parent corporation) shall allocate and
is based on the amount of the tax payment and is paid directly to Official
apportion their Alabama taxable income and losses separately, using
Payments Corporation.

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