Form 20c Instructions - Corporation Income Tax Return

• Link2Gov – The Department will accept credit card payments through

business activity in Alabama is represented by the apportionment percentage

Link2Gov. You may choose to use your Discover/Novus, MasterCard, Visa or

(has operations in Alabama and one or more states). Taxpayers with 100% Ala-

American Express card. There is a convenience fee for this service. The fee is

bama activities should not complete Schedule D-1. Schedule D-2 may be com-

based on the amount of the tax payment and is paid directly to Link2Gov.

pleted by the entity whose only activities within Alabama consist of sales and do

• Value Payment Systems – The Department will accept credit card pay-

not include owning or renting real estate or tangible personal property and whose

ments through Value Payment Systems. You may choose to use your Dis-

gross Alabama sales are not in excess of $100,000; or Schedule C should be

cover/Novus, MasterCard or Visa card. Value Payment Systems does not accept

completed if the taxpayer’s has received prior permission from the Commissioner

the American Express card but has a program called BillMeLater. There is a con-

of Revenue to report utilizing the Separate (Direct) Accounting. Items reported

venience fee for this service. The fee is based on the amount of the tax payment

on Schedule C are excluded from apportionable income and are allocated either

to Alabama or to another state. See Rule 810-27-1-4-.01. Please see our Web site

and is paid directly to Value Payment Systems.

Make check or money order payable to:

at for instructions on filing a Consolidated Tax Return.

Alabama Department of Revenue

In the top, center block of page 1 enter the corporation’s federal business

code number, its federal employer identification number (FEIN), and its name and

Write the corporation’s federal employer identification number, the income tax

mailing address (with complete zip code). Below the address enter the state of in-

form number or type of payment (Form 20C, Form 20C-C, automatic extension

corporation, date of incorporation, the date the corporation qualified to do business

payment, estimated tax payment), and the tax year end on the check. Remit with

Form BIT-V.

in Alabama, and the nature of business being conducted in Alabama.

Check the appropriate box to indicate the following:

Tax due and not paid on or before the due date will be subject to a failure to

• Final IRS change and notification is attached.

timely pay penalty of 1% per month, up to 25%, and will accrue interest at the rate

• Federal Form 1120-REIT was filed.

provided in §40-1-44.

Mail returns with payments and payment vouchers to:

• Alabama Form 2220AL (which is used to compute underpayment of es-

timated taxes based on an allowable federal method) is attached.

Alabama Department of Revenue

BE SURE TO FILL OUT ALL APPLICABLE LINES ON PAGE 1 even if de-

Individual and Corporate Tax Division

tailed schedules are attached. Failure to properly complete the return may result

Corporate Income Tax

in delinquent penalties.

P.O. Box 327435

LINE 1. Enter the amount of the corporation’s federal taxable income or (loss)

Montgomery, AL 36132-7435

from the corporation’s federal income tax return. REITs should enter the Real

Telephone (334) 242-1200

Estate Investment Trust Taxable Income from the federal 1120-REIT return. Reg-

Mail non-payment and refund returns to:

ulated Investment Companies (RICs) should enter the Investment Company Tax-

Alabama Department of Revenue

able Income from the federal 1120-RIC return. Tax exempt entities should enter

Individual and Corporate Tax Division

the Unrelated Business Taxable Income from the federal 990-T return.

Corporate Income Tax

LINE 2. Enter the amount of the net operating loss deduction claimed by the

P.O. Box 327430

corporation from the federal income tax return.

Montgomery, AL 36132-7430

LINE 3. Enter the net amount of reconciliation adjustments from line 25,

Telephone (334) 242-1200

Schedule A, on page 2. Enclose the amount on line 3 in parentheses if net rec-

Specific Instructions

onciliation deductions exceed additions.

At the top, left-hand corner of page 1 check all applicable boxes if filing an ini-

LINE 5. Enter the amount shown in line 2, Column E, Schedule C, page 3.

tial, final, amended return, or address change.

Enclose net nonbusiness income in parentheses.

Net nonbusiness income is a negative amount in computing total apportion-

At the top, right-hand corner of page 1 check the appropriate box indicating a

calendar-year, fiscal-year, or short-year return. Fill in the blanks indicating the be-

able income on line 6. Net nonbusiness expense or loss is a positive amount in

ginning and ending dates of the tax period if the return is for a fiscal year or a

computing total apportionable income on line 6.

short year.

LINE 6. Enter the sum of lines 4 and 5. Special attention should be paid to

If this corporation is included in a consolidated federal income tax return,

whether the amounts on lines 4 and 5 are positive or negative. Negative amounts

must be netted against positive amounts.

check the block and enter the name and federal employer identification number

of the common parent corporation.

LINE 9. Enter the amount shown on line 2, Column F, Schedule C, page 3.

Check the appropriate filing status. ONLY ONE BOX can be checked for the

Enclose net nonbusiness expense or (loss) in parentheses.

corporation’s filing status.

Net nonbusiness income allocated to Alabama is a positive amount in com-

puting Alabama income before federal income tax deduction. Net nonbusiness

Filing status 1 through 4. Check one of the boxes for filing status 1 through

expense or (loss) allocated to Alabama is a negative amount in computing Ala-

4 if the taxpayer will not file as part of a consolidated Alabama return. Filing sta-

tus 1, Corporation operating only in Alabama, should be used by taxpayers with

bama income before federal income tax deduction.

100% Alabama activities. Filing status 2, Multi-state corporation, is available as

LINE 11b. Enter the total Health Insurance Premiums paid as allowed by Act

an option to taxpayers whose business activity in Alabama is represented by the

Number 2011-155. The new law allows qualifying employers to deduct an addi-

tional fifty percent (100%) of the amount paid as health insurance premiums on

apportionment percentage (has operations in Alabama and one or more states).

qualifying employees in connection with an employer-provided health insurance

Filing status 3, Percentage of Sales, is available as an option to taxpayers whose

only activities within Alabama consist of sales and do not include owning or rent-

plan. Attach an itemized list of qualified employees. Include the employee name,

ing real estate or tangible personal property and whose gross Alabama sales are

social security number; and the amount of health insurance premiums paid.

not in excess of $100,000. Use Schedule D-2 to compute tax. Filing status 4,

LINE 11c. Reemployment Act of 2010, Act Number 2010-557, passed by the

Separate (Direct) Accounting, should only be used by taxpayers that have re-

Alabama Legislature during the 2010 Regular Session, allows a deduction for

employers that create new jobs for unemployed persons, effective for the tax

ceived prior permission from the Alabama Commissioner of Revenue.

years 2011 and 2012.

Filing status 5, Proforma return, should be used only by those taxpay-

ers who have elected to file as part of a consolidated group for Alabama

The deduction shall equal to a percent of the gross wages paid to each per-

purposes. Taxpayers with a valid election to file as part of a consolidated Alabama

son hired, who at the time of such employment, was drawing unemployment com-

return must mark “Filing Status 5” and include the return with Form 20C-C in order

pensation or whose unemployment benefits has expired.

• 50% deduction limited to wage rates $14 per hour and above.

for each company’s return to process correctly. Taxpayers should not check the

box for filing status 1 through 4 if they are part of a consolidated filing. In addition

• 40% deduction granted for wage rates between $12 and $14 per hour.

to checking Filing status 5, Schedule D-1 must be completed by the entity whose

• 35% deduction granted for wage rates between $10 and $12 per hour.

Form 20c Instructions - Corporation Income Tax Return - 2011 Page 3

Related Articles

Related forms

Related Categories