Form 20c Instructions - Corporation Income Tax Return

Estimated tax payments not paid by each quarterly due date will be subject

filed as an attachment with the appropriate federal form type. This includes items

to interest on the underpayment – determined by applying the underpayment

such as the consolidating income spreadsheets (including the column that identifies

rate established by 26 U.S.C. §6621 (as provided by Alabama Code Section 40-

any eliminations or adjustments that occur as a result of the federal consolidation

18-80.1) to the underpayment for the period of underpayment. In addition, the

rules); the consolidating balance sheets (by separate company) for the beginning

10% penalty provided for in Alabama Code Section 40-2A-11 applies to estimated

of the year and the end of the year; supporting statements for other income and

tax payments not paid by the quarterly due date.

other deductions (by separate company). These supporting statements, forms

and schedules should be copies of the actual documents provided to the In-

Form 2220AL. Relief from the interest and penalty due on underpayment of

ternal Revenue Service, not reproduced versions for state tax purposes.

estimated tax may be granted to eligible taxpayers who file Alabama Form 2220AL

and meet one of the exceptions below.

Period Covered:

• A corporation computed their required quarterly installments using an ap-

File the 2011 return for calendar year 2011 and for fiscal years or short years

proved federal method (annualized or seasonal).

that begin in 2011. Mark the appropriate box at the top of the form for a fiscal year

• A Large Corporation is allowed to base its. first quarter installment on the

or short-year.

prior year tax liability.

Signature:

Automatic Extension Payments. An automatic extension of six months is

The return must be signed by an authorized officer of the corporation. If the

granted to file the Alabama Corporation Income Tax Return, Form 20C. If esti-

property or business is being operated by a receiver trustee in bankruptcy or an

mated payments do not equal or exceed the amount of tax due for the period, the

assignee, such person shall sign for the corporation. Enter the date signed and

balance of the corporation's tax liability is due on or before the original due date

the title of the person whose signature is affixed. If the return is prepared by any-

of the return.

one other than an employee of the taxpayer, enter the signature and identification

Automatic extension payments of $750 or more must be made electronically.

information of the preparer.

DO NOT MAIL FORM BIT-V IF THE PAYMENT IS REMITTED ELECTRONI-

PAID PREPARER AUTHORIZATION. Above the return signature area is a

CALLY.

check box which can be used to authorize the Alabama Department of Revenue

To obtain Form BIT-V visit our Web site at

to discuss the Alabama Form 20C and its attachments with the paid preparer –

Taxes not paid on or before the unextended due date will be subject to inter-

who is identified in the Paid Preparer’s Use Only section of the return. Checking

est until paid at the rate provided in §40-1-44, Code of Alabama 1975, and all ap-

the box can facilitate the process of resolving a problem when information on the

plicable penalties.

return is missing or incomplete.

Returns or payments under $750 bearing a U.S. Postal Service cancellation no

PAID PREPARER INFORMATION. Anyone who is paid to prepare the Ala-

later than midnight of the due date (with extensions) will be considered timely filed.

bama Form 20C must sign and provide the information requested in the Paid Pre-

CIVIL PENALTIES. Section 40-2A-11 provides additional penalties for (1)

parer’s Use Only section of the Form 20C. The signature can be made by hand,

failure to timely file, (2) failure to timely pay, (3) underpayment due to negligence,

rubber stamp, mechanical device, or a computer software program. Paid prepar-

and (4) underpayment due to fraud. These penalties may be assessed in addition

ers must provide the taxpayer with a copy of the prepared return.

to the amounts provided by §40-18-80.1.

Any questions concerning the preparation of the Alabama Form 20C should

How To File:

be directed to the Corporate Income Tax Section 334-242-1200.

Short period returns are not required or allowed unless the taxpayer

Alabama Corporate Income Tax law, regulations, forms and instructions are

changes their accounting period or ceases to exist before the end of the

available on the Alabama Department of Revenue’s Web site at

tax year. A change in ownership does not prompt the end of a tax year for Ala-

alabama.gov.

bama purposes. For example, if a corporation is purchased during a tax year by

Where To File/Payment of Tax:

another corporation and the accounting period remains the same, for federal tax

The total amount of the corporation’s income tax liability for the period is due

purposes, the corporation will file two short period returns. For Alabama purposes,

on or before the unextended due date of the return. If the return is to be filed

the taxpayer should file one return for the entire year.

under extension, any liability due should be remitted no later than the original due

Corporations that either withdraw from doing business in the state prior to the

date of the return. Payments of $750 or more must be made electronically. Non-

end of the year or do not begin doing business in the state at the beginning of the

electronic payments must be remitted with Form BIT-V. DO NOT MAIL FORM

tax year must file a full year return. Do not file a short year return. The tax year

BIT-V IF THE PAYMENT IS REMITTED ELECTRONICALLY.

for the state return must be the same as the federal tax year. Income will be ap-

ELECTRONIC PAYMENT. Section 41-1-20 requires electronic payments for

portioned to Alabama using the apportionment factor.

all single business tax payments of $750 or more. Substantial penalties will be as-

REQUIRED ATTACHMENTS. For the return to be considered complete and

sessed for noncompliance.

properly filed, a signed copy of the appropriate federal return (Form 1120, 1120A,

Electronic Payment Options available:

1120F, 1120H, 990/990T, etc.) must be attached. However, if the corporation is

• ACH Debit – Taxpayers making e-payments via ACH Debit must have a

completing a 20C proforma return, the appropriate federal return and required at-

sign on ID and access code to login to the Alabama Department of Revenue

tachments should be attached to the Form 20C-C. Failure to attach the complete

(ADOR) Paperless Filing & Payment Systems. Visit our Web site at

federal return, as filed with the IRS, with the necessary supporting schedules,

alabama.gov/eservices.htm for additional information.

forms and statements (ex: Schedule D, Schedule UTP; Form 8886, Form 4797,

• ACH Credit – Taxpayers making e-payments via ACH Credit must be pre-

balance sheet, supporting statements for other income and other deductions)

approved by ADOR. To register, complete and submit Form EFT:001 entitled EFT

may result in the imposition of delinquent penalties. In addition to the required

Authorization Agreement Form. Visit our Web site at alabama.gov/

federal attachments, Alabama requires copies of Schedules K-1 for each tax en-

eservices.htm for additional information.

tity the corporation held an interest in during the taxable year. Itemized depreci-

ation schedules are not required to be attached to Form 20C, but should be

• Alabama Interactive – The Department will accept e-payments for esti-

maintained and available upon request.

mated and automatic extension payments through Alabama Interactive. Visit

If the corporation is a member of an affiliated group which files a consolidated

taxextension/.

federal return, additional information is required. In addition to the signed copy of the

appropriate federal return, the following are required: 1) Federal Form 851, the fed-

• Official Payments – The Department will accept electronic check (e-check)

eral affiliations schedule, should be included and the names of those entities sub-

and credit card payments through Official Payments Corporation on the Internet.

ject to Alabama tax should be identified. The names of the entities subject to

Visit There is a convenience fee for credit card

Alabama tax can either be underlined, or identified by using an (*) asterisk beside

payments. The fee is based on the amount of the tax payment and is paid directly

the name of the entity. 2) Copies of the supporting schedules, forms and statements

to Official Payments Corporation.

Form 20c Instructions - Corporation Income Tax Return - 2011 Page 2

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