Instructions For Form Et-1c - Consolidated Financial Institution Excise Tax

FORM

NSTRUCTIONS

REPARATION OF

ET-1C

2012

LABAMA

EPARTMENT OF

EVENUE

Consolidated Financial Institution Excise Tax

INSTRUCTIONS

Alabama Financial Institutions Excise Tax law, regulations, forms and instructions are available

on the Alabama Department of Revenue’s Web site at

What’s New for 2011

Extension to file Alabama Form ET-1C

My Alabama Taxes (MAT). My Alabama Taxes (MAT) is not available. MAT is

Alabama Form ET-8, Application for Extension of Time for Filing Alabama Fi-

a secure way to view and access your tax information using the Internet. Anyone

nancial Institution Excise Return, may be used to request an extension for either

who has an account with the Alabama Department of Revenue (ADOR) may reg-

3 months or 6 months. If requesting a three (3) month extension, 50% of the es-

ister to access their tax information through MAT.

timated tax due must be remitted with the extension request on or before April

15th. The balance plus interest must be remitted with the return when filed on or

All Taxpayers who choose to register for MAT will have the ability to manage

before July 15th. If requesting a six (6) month extension, the entire estimated tax

and monitor their tax accounts. The following functions can be performed de-

due must be remitted with the extension request by April 15th. The return will be

pending on the type of tax account:

due on or before October 15th. Taxpayers who request extension of time to

• File Form ET-8 – Financial Institution Excise Extension

file Alabama Form ET-1C are encouraged to remit Alabama ET-8 and pay-

• File Form ET-C – Financial Institution Election to File Consolidated Return

ment electronically. Payments of $750 or more must be remitted electroni-

• Make a payment

cally. Visit our Web site at and select e-services

• View account balance and activity

then extension.

• Change account information such as name and address

NOTE: The Alabama parent should remit Form ET-8 on behalf of all of the com-

Taxpayers will also have the ability to specify an authorized agent(s) to access

panies included in the consolidated election.

MAT on their behalf. Also available is a messaging capability. For further infor-

mation, contact the Alabama Department of Revenue, P.O. Box 327900, Mont-

Preparation Instructions

gomery, AL 36132-7900 or call (334) 353-9448.

Taxpayers filing consolidated financial institution excise tax returns will submit

General Information for Financial Institutions

completed proforma Forms ET-1 for each of the separate companies included in

Filing a Consolidated Return

the consolidated excise group. A proforma Form ET-1 is a completed Form ET-1

with filing status 4 checked. In addition to a proforma Form ET-1, the Alabama par-

Alabama Form ET-1C must be filed by taxpayers meeting the definition of fi-

ent will complete Form ET-1C. Form ET-1C was designed to summarize the sep-

nancial institutions (as defined in Section 40-16-1, Code of Alabama 1975) that

arate company information from each of the proforma Form ET-1 returns for each

have properly elected to file a consolidated financial institutions excise tax return.

of the members of the consolidated excise group. All financial information for the

Form ET-1C is an annual return due on April 15th of each excise tax year.

group will be summarized on the Form ET-1C. Tax due for the group will be com-

The financial institutions excise tax is payable on or before April 15th of the ex-

puted on Form ET-1C. Petitions for refund for the consolidated group will also be

cise tax year. The Alabama taxable income, computed and reported on the form,

requested using the Form ET-1C. Any tax payments for the consolidated group

is for the last taxable year of the financial institution ended prior to April 1 of the

should be made by the Alabama parent and claimed on Form ET-1C.

excise tax year.

EXAMPLE: The 2012 Alabama Form ET-1C is due on April 15, 2012. If April

NOTE: For line by line instructions for proforma Form ET-1, please see the in-

15 falls on a Saturday, Sunday, or state holiday, the return and payment will be

structions for Form ET-1. These instructions will only provide line by line instruc-

due the following business day. Payment of the tax liability shown on the 2011

tions for the Form ET-1C.

Form ET-1C allows the taxpayer to engage in the business of being a financial in-

REQUIRED ATTACHMENTS. For the Consolidated Financial Institutions Ex-

stitution in the State of Alabama for the 2012 calendar year. If the taxpayer is a

cise Tax return to be considered complete, a complete signed copy of the ap-

calendar year taxpayer, the Alabama taxable income computed and shown due

plicable federal income tax return must be attached. Failure to attach the

on the 2012 Form ET-1C is based on the operations of the 2011 calendar year.

complete federal return and supporting schedules may result in the impo-

In order for the qualified corporate group to be able to file a consolidated re-

sition of delinquent penalties. A complete federal return includes consolidated

turn, the financial institution members must meet the definition of a financial in-

income spreadsheets, consolidated balance sheets, consolidated Schedules M-

stitution found in Section 40-16-1 of the Code of Alabama 1975. The members

1, M-2, M-3, Schedule UTP, as well as supporting schedules for each of these

must also meet the ownership requirement and filing requirement specified in

items broken down by each separate company included in the consolidated fed-

Section 40-16-3, Code of Alabama 1975.

eral group.

Annual Consolidated Filing Election and Fee

If the parent of the consolidated excise group incurs a current year loss, a

computation of the parent company loss allocation must be included as an at-

In order for a financial institution excise group to file a consolidated financial

tachment to the consolidated excise tax return. The parent company loss alloca-

institution excise return, the parent of the group must meet the ownership and fil-

tion must be made in accordance with Alabama excise tax regulation

ing requirements, specified in Section 40-16-3, Code of Alabama and timely file

810-9-1-.01(4)(j)2.

an election to file consolidated (Form ET-C). Financial institutions that file federal

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

Form 1120S (U.S. Income Tax Return for an S Corporation) are not required to

tial, final, amended return, or address change.

file Alabama Form ET-1C nor are they required to make a consolidated election

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

(Form ET-C) for Alabama purposes. Alabama treats an S Corporation and its qual-

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

ified subchapter S subsidiaries as one entity. Form ET-1 should be filed instead

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

of Form ET-1C. Form ET-C must be received by the Department of Revenue on

short year.

or before April 15 of the excise tax year. In addition to Form ET-C, the parent must

also remit a $6000 consolidated filing fee. Form ET-C and the required fee must

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

both be remitted electronically. Please visit our Web site at

number, its federal employer identification number (FEIN), and its name and mail-

alabama.gov and select E Services.

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

Instructions For Form Et-1c - Consolidated Financial Institution Excise Tax - 2012

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