Instructions for Form 20C-C "Consolidated Corporate Income Tax Return" - Alabama

This document contains official instructions for Form 20C-C, Consolidated Corporate Income Tax Return - a form released and collected by the Alabama Department of Revenue.

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Download Instructions for Form 20C-C "Consolidated Corporate Income Tax Return" - Alabama

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20C-C
2017
I
F
T
P
NSTRUCTIONS
OR
HE
REPARATION OF
FORM
A
D
R
LABAMA
EPARTMENT OF
EVENUE
Consolidated Corporate Income Tax Return
INSTRUCTIONS
What’s New for 2017
nual payment. Required annual payment generally means the lessor of a) 100
percent of the tax shown on the return for the taxable year, or b) 100 percent of
Federal Income Tax (FIT) Deduction. Alabama Rule 810-3-35-.01 has been
the tax shown on the return for the preceding taxable year. The prior period ex-
repealed and replaced to remove methods 1552(a)(2) and 1552(a)(3) in com-
ception shall not apply if the preceding taxable year was not a taxable year of 12
puting the FIT Deduction. For tax years beginning on or after August 29, 2016,
months or the corporation did not file a return for such preceding taxable year
corporate taxpayers must use the 1552(a)(1) method to determine the amount of
Form 2220AL. Relief from the interest and penalty due on underpayment of
showing a liability for tax. Refer to Alabama Code Section 40-18-80-1.
applicable FIT Deduction. See Alabama Rule 810-3-35-.01 for additional infor-
mation.
estimated tax may be granted to eligible taxpayers who file Alabama Form
AMT Check the Box Option. In computing the Federal Income Tax (FIT)
2220AL and meet one of the exceptions below.
Deduction, taxpayers must specify whether they paid Alternative Minimum Tax
proved federal method (annualized or seasonal).
• A corporation computed their required quarterly installments using an ap-
(AMT). If so, taxpayers must use Alternative Minimum Taxable Income (AMTI) to
• A Large Corporation is allowed to base its first quarter installment on the
General Information For
determine the corporation’s portion of federal income taxes accrued or paid.
Consolidated Filing:
prior year tax liability.
• An exception if the corporation’s main source of Alabama Taxable Income
Remit estimated tax and extension payments using Form BIT-V if the
is the result of Schedule K-1 income generated from a Pass Through Entity.
An AAG, Alabama Affiliated Group, may elect to file an Alabama consolidated
payment is less than $750. Payments over $750 must be remitted elec-
return. An Alabama consolidated return means an Alabama corporate income tax
tronically. Form BIT-V is not required if the payment is made electronically.
return filed by or on behalf of the members of an AAG. The election is made by fil-
Where To File/Payment of Tax:
ing Form 20C-CRE (Election to File Consolidated Corporate Income Tax Return).
To obtain Form BIT-V visit our website at www. revenue. alabama.gov.
The completed election form must be submitted to the Department on or before
the due date, with extensions, for the first taxable year for which the election is ap-
plicable. If the common parent (for federal income tax purposes) is not a member
The total amount of the AAG’s income tax liability for the period is due on or
of the AAG, the members shall designate to the Department which member of the
before the unextended due date of the return. If the return is to be filed under ex-
group shall serve as the AAG’s common parent for Alabama. The parent must be
tension, any liability due should be remitted no later than the original due date of
an Alabama nexus group member. The consolidated election is binding and ir-
less than $750, may be remitted with Form BIT-V. DO NOT MAIL FORM BIT-V
the return. Payments of $750 or more must be made electronically. Payments
revocable for a period of 120 consecutive months (10 years), beginning with the
IF THE PAYMENT WAS REMITTED ELECTRONICALLY.
first month of the taxable year for which the election is made and ending with the
ELECTRONIC PAYMENT. §41-1-20 requires electronic payments for all sin-
conclusion of the taxable year in which the 120th consecutive month expires.
In accordance with §40-18-39, for tax periods beginning January 1, 2002,
gle business tax payments of $750 or more. Substantial penalties will be as-
and after, AAG means a group of corporations, each member of which is subject
sessed for noncompliance.
to tax under §40-18-31 and Public Law 86-272 which are members of an Affili-
My Alabama Taxes (MAT) – Taxpayers who have an account with the Ala-
Electronic Payment Options available:
ated Group for Federal purposes and file a Federal Consolidated Corporate In-
come Tax Return. Each member (including the Alabama designated common
bama Department of Revenue may register and make e-payments using MAT.
parent corporation) shall allocate and apportion their Alabama taxable income
Visit the Department’s website at www.revenue.alabama.gov (click the MAT icon
and losses separately, using separate apportionment factors and file using the
ACH Credit – Taxpayers making e-payments via ACH Credit must be pre-ap-
on the home page).
Proforma Form 20C. The sum of the separate company Alabama taxable income
amounts (Sum of line 14, of all Proforma Forms 20C) are then brought forward
proved by ADOR. To register, complete and submit Form EFT:001 entitled EFT
to line 1 of the Alabama Consolidated Corporate Income Tax Return (Form 20C-
Authorization Agreement Form. Visit our website at www.revenue. alabama.gov
C) and reported on this single Alabama return for the AAG. Form 20C-C, Con-
for additional information.
solidated Corporate Income Tax Return, must be filed by all AAGs with a binding
Technical assistance with making a payment using ACH Credit, call the
consolidated election. All transactions between and among members of the AAG
toll free hotline (1-877-256-2447) from 8:00 a.m. through 5:00 p.m. (Central
shall be reported on an arm’s length basis. In addition to the separate company
• Alabama Interactive – The Department will accept e-payments for esti-
Standard Time)
calculation, there may be additional expense items with limitations based on Ala-
bama consolidated taxable income. Credits are not allowed to exceed Alabama
mated and extension payments through Alabama Interactive. Visit
Estimate/Extension/Informational
consolidated taxable income.
www.alabamainteractive.org/ taxestimation/ or www.alabamainteractive.org/
Requirements for AAG’s:
taxextension/.
Technical assistance with making a payment using Alabama Interac-
• Official Payments – The Department will accept debit and credit card pay-
tive, call toll free (1-866-353-3468)
All payments made on behalf of or for the AAG are to be paid for and cred-
ited to the account of the AAG parent corporation. Any AAG, which has an Ala-
ments through Official Payments Corporation on the Internet. Visit
bama income tax liability in the excess of $500 must pay estimated tax. The first
www.officialpayments. com. A convenience fee may be charged for the use of this
payment is due by the 15th day of the 4th month of the taxable year. The 2nd, 3rd,
service and will be automatically calculated, if applicable. The fee is based on the
and 4th payments are due by the 15th day of the 6th, 9th, and 12th months, re-
amount of the tax payment and is paid directly to Official Payments Corporation.
spectively. If an installment is due on a Saturday, Sunday, or state holiday, pay-
Customer service support, making a payment using, Official Payment
ments made on the next day that is not a Saturday, Sunday, or legal holiday are
call toll free 1-800-487-4567 from 7:00 a.m. through 7:00 p.m. (Central Stan-
considered made on the due date to the extent the payment is applied against that
• Value Payment Systems – The Department will accept credit and debit
dard Time)
required installment.
The amount of required installments shall be 25 percent of the required an-
card payments through Value Payment Systems. Visit www.payaltax.com. There
20C-C
2017
I
F
T
P
NSTRUCTIONS
OR
HE
REPARATION OF
FORM
A
D
R
LABAMA
EPARTMENT OF
EVENUE
Consolidated Corporate Income Tax Return
INSTRUCTIONS
What’s New for 2017
nual payment. Required annual payment generally means the lessor of a) 100
percent of the tax shown on the return for the taxable year, or b) 100 percent of
Federal Income Tax (FIT) Deduction. Alabama Rule 810-3-35-.01 has been
the tax shown on the return for the preceding taxable year. The prior period ex-
repealed and replaced to remove methods 1552(a)(2) and 1552(a)(3) in com-
ception shall not apply if the preceding taxable year was not a taxable year of 12
puting the FIT Deduction. For tax years beginning on or after August 29, 2016,
months or the corporation did not file a return for such preceding taxable year
corporate taxpayers must use the 1552(a)(1) method to determine the amount of
Form 2220AL. Relief from the interest and penalty due on underpayment of
showing a liability for tax. Refer to Alabama Code Section 40-18-80-1.
applicable FIT Deduction. See Alabama Rule 810-3-35-.01 for additional infor-
mation.
estimated tax may be granted to eligible taxpayers who file Alabama Form
AMT Check the Box Option. In computing the Federal Income Tax (FIT)
2220AL and meet one of the exceptions below.
Deduction, taxpayers must specify whether they paid Alternative Minimum Tax
proved federal method (annualized or seasonal).
• A corporation computed their required quarterly installments using an ap-
(AMT). If so, taxpayers must use Alternative Minimum Taxable Income (AMTI) to
• A Large Corporation is allowed to base its first quarter installment on the
General Information For
determine the corporation’s portion of federal income taxes accrued or paid.
Consolidated Filing:
prior year tax liability.
• An exception if the corporation’s main source of Alabama Taxable Income
Remit estimated tax and extension payments using Form BIT-V if the
is the result of Schedule K-1 income generated from a Pass Through Entity.
An AAG, Alabama Affiliated Group, may elect to file an Alabama consolidated
payment is less than $750. Payments over $750 must be remitted elec-
return. An Alabama consolidated return means an Alabama corporate income tax
tronically. Form BIT-V is not required if the payment is made electronically.
return filed by or on behalf of the members of an AAG. The election is made by fil-
Where To File/Payment of Tax:
ing Form 20C-CRE (Election to File Consolidated Corporate Income Tax Return).
To obtain Form BIT-V visit our website at www. revenue. alabama.gov.
The completed election form must be submitted to the Department on or before
the due date, with extensions, for the first taxable year for which the election is ap-
plicable. If the common parent (for federal income tax purposes) is not a member
The total amount of the AAG’s income tax liability for the period is due on or
of the AAG, the members shall designate to the Department which member of the
before the unextended due date of the return. If the return is to be filed under ex-
group shall serve as the AAG’s common parent for Alabama. The parent must be
tension, any liability due should be remitted no later than the original due date of
an Alabama nexus group member. The consolidated election is binding and ir-
less than $750, may be remitted with Form BIT-V. DO NOT MAIL FORM BIT-V
the return. Payments of $750 or more must be made electronically. Payments
revocable for a period of 120 consecutive months (10 years), beginning with the
IF THE PAYMENT WAS REMITTED ELECTRONICALLY.
first month of the taxable year for which the election is made and ending with the
ELECTRONIC PAYMENT. §41-1-20 requires electronic payments for all sin-
conclusion of the taxable year in which the 120th consecutive month expires.
In accordance with §40-18-39, for tax periods beginning January 1, 2002,
gle business tax payments of $750 or more. Substantial penalties will be as-
and after, AAG means a group of corporations, each member of which is subject
sessed for noncompliance.
to tax under §40-18-31 and Public Law 86-272 which are members of an Affili-
My Alabama Taxes (MAT) – Taxpayers who have an account with the Ala-
Electronic Payment Options available:
ated Group for Federal purposes and file a Federal Consolidated Corporate In-
come Tax Return. Each member (including the Alabama designated common
bama Department of Revenue may register and make e-payments using MAT.
parent corporation) shall allocate and apportion their Alabama taxable income
Visit the Department’s website at www.revenue.alabama.gov (click the MAT icon
and losses separately, using separate apportionment factors and file using the
ACH Credit – Taxpayers making e-payments via ACH Credit must be pre-ap-
on the home page).
Proforma Form 20C. The sum of the separate company Alabama taxable income
amounts (Sum of line 14, of all Proforma Forms 20C) are then brought forward
proved by ADOR. To register, complete and submit Form EFT:001 entitled EFT
to line 1 of the Alabama Consolidated Corporate Income Tax Return (Form 20C-
Authorization Agreement Form. Visit our website at www.revenue. alabama.gov
C) and reported on this single Alabama return for the AAG. Form 20C-C, Con-
for additional information.
solidated Corporate Income Tax Return, must be filed by all AAGs with a binding
Technical assistance with making a payment using ACH Credit, call the
consolidated election. All transactions between and among members of the AAG
toll free hotline (1-877-256-2447) from 8:00 a.m. through 5:00 p.m. (Central
shall be reported on an arm’s length basis. In addition to the separate company
• Alabama Interactive – The Department will accept e-payments for esti-
Standard Time)
calculation, there may be additional expense items with limitations based on Ala-
bama consolidated taxable income. Credits are not allowed to exceed Alabama
mated and extension payments through Alabama Interactive. Visit
Estimate/Extension/Informational
consolidated taxable income.
www.alabamainteractive.org/ taxestimation/ or www.alabamainteractive.org/
Requirements for AAG’s:
taxextension/.
Technical assistance with making a payment using Alabama Interac-
• Official Payments – The Department will accept debit and credit card pay-
tive, call toll free (1-866-353-3468)
All payments made on behalf of or for the AAG are to be paid for and cred-
ited to the account of the AAG parent corporation. Any AAG, which has an Ala-
ments through Official Payments Corporation on the Internet. Visit
bama income tax liability in the excess of $500 must pay estimated tax. The first
www.officialpayments. com. A convenience fee may be charged for the use of this
payment is due by the 15th day of the 4th month of the taxable year. The 2nd, 3rd,
service and will be automatically calculated, if applicable. The fee is based on the
and 4th payments are due by the 15th day of the 6th, 9th, and 12th months, re-
amount of the tax payment and is paid directly to Official Payments Corporation.
spectively. If an installment is due on a Saturday, Sunday, or state holiday, pay-
Customer service support, making a payment using, Official Payment
ments made on the next day that is not a Saturday, Sunday, or legal holiday are
call toll free 1-800-487-4567 from 7:00 a.m. through 7:00 p.m. (Central Stan-
considered made on the due date to the extent the payment is applied against that
• Value Payment Systems – The Department will accept credit and debit
dard Time)
required installment.
The amount of required installments shall be 25 percent of the required an-
card payments through Value Payment Systems. Visit www.payaltax.com. There
Signature:
is a convenience fee for this service. The fee is based on the amount of the tax
payment and is paid directly to Value Payment Systems.
The return must be signed by an authorized officer of the corporation. If the
Customer service support, making a payment using, Value Payment
property or business is being operated by a receiver trustee in bankruptcy, or an
System call toll free 1-888-877-0450 from 7:00 a.m. through 7:00 p.m. (Cen-
assignee, such person shall sign for the corporation. Enter the date signed and
tral Standard Time)
the title of the person whose signature is affixed. If the return is prepared by any-
Make check or money order payable to: Alabama Department of Revenue
one other than an employee of the taxpayer, enter the signature and identifica-
tion information of the preparer.
PAID PREPARER AUTHORIZATION. Above the return signature area is a
Write the AAG’s federal employer identification number, the income tax form
check box which can be used to authorize the Alabama Department of Revenue
number or type of payment (i.e. Form 20C-C, extension payment, estimated tax
– who is identified in the Paid Preparer’s Use Only section of the return. To rep-
to discuss the Alabama Form 20C-C and its attachments with the paid preparer
payment, etc.), and the tax year end on the check. Remit with a properly com-
resent the taxpayer before the Alabama Department of Revenue for tax mat-
pleted Form BIT-V if the payment is not made electronically.
ters related to the return, this box must be checked.
Tax due not paid on or before the due date will be subject to a failure to timely
pay penalty of 1% per month, up to 25%, and will accrue interest at the rate pro-
PAID PREPARER INFORMATION. Anyone who is paid to prepare the Ala-
vided in §40-1-44.
bama Form 20C-C must sign and provide the information requested in the Paid
Mail Consolidated Returns and Payments to:
Preparer’s Use Only section of the Form 20C-C. The signature can be made by
hand, rubber stamp, mechanical device, or a computer software program. Paid
Alabama Department of Revenue
preparers must provide the taxpayer with a copy of the prepared return.
Corporate Compliance Section
Any questions concerning the preparation of the Alabama Form 20C-C should
P.O. Box 327437
be directed to the Corporate Income Tax Section 334-353-5870 .
Montgomery, AL 36132-7437
Alabama Corporate Income Tax law, rules, forms and instructions are avail-
able
on
the
Alabama
Department
of
Revenue’s
website
at
How To File:
Telephone (334) 353-5870
www.revenue.alabama.gov.
DO NOT file Form 20C-C if you are not the parent of the Alabama Affiliated
Enter the taxpayer’s representative to contact for information concerning the
return along with the contact person’s email address and telephone number. If the
Group. Taxpayers filing consolidated Alabama corporate returns will submit com-
paid preparer will represent the taxpayer for tax matters related to the return, the
pleted proforma Forms 20C for each separate company included in the consoli-
authorization box on the return must be checked in addition to being notated on
Specific Instructions
dated corporate group (including the Alabama designated common parent). A
this line.
proforma Form 20C is a completed Form 20C with filing status 5 checked. See
Alabama Form 20C Instructions for general instructions for using Form 20C Pro-
At the top, left-hand corner of page 1 check all applicable boxes if filing an ini-
forma returns.
REQUIRED ATTACHMENTS. For the return to be considered complete and
tial, final, amended return or address change. NOTE: Amended return filings
should provide a detailed explanation for filing amended return, supporting doc-
properly filed, a signed copy of the consolidated federal return (Form 1120) must
umentation to validate amended changes, and computation of additional amount
be attached. Failure to attach the complete consolidated federal return, as filed
due or refund due. Amended proforma Form 20C returns-filing status 5 must be
with the IRS, with the necessary supporting schedules, forms and statements
included, in order for the amended Form 20C-C to be considered complete. Ala-
(ex: Schedule D, Schedule UTP, Form 8886, Form 4797, balance sheet, sup-
bama Code Section 40-18-40 (Rule 810-3-40-.01).
porting statements for other income and other deductions) may result in the im-
At the top, right-hand corner of page 1, check the appropriate box indicating
position of delinquent and/or frivolous return penalties. In addition to the signed
a calendar year, fiscal year or short year return.
A calendar tax year is considered to have 12 consecutive months, beginning
copy of the consolidated federal return, the following are required: 1) Federal
Form 851, the federal affiliations schedule should be included and the names of
A fiscal tax year is considered to have 12 consecutive months ending on the
January 1 and ending December 31.
those entities subject to Alabama tax should be identified. The names of the en-
tities subject to Alabama tax can either be underlined, or identified by using an
A short tax year is a tax year of less than 12 months.
last day of any month except December.
(*) asterisk beside the name of the entity. 2) Copies of the supporting schedules,
A 52/53 week tax year is a fiscal tax year that varies from 52 to 53 weeks
forms and statements filed as an attachment with the consolidated federal form
should be included with the Alabama Form 20C-C. This would include items such
that ends on a set day of the week, and does not have to end on the last day of
as the consolidating income spreadsheets (including the column that identifies
a month.
any eliminations or adjustments that occur as a result of the federal consolidation
Check the 52/53 week checkbox if the tax return is being filed by an entity with
rules); the consolidating balance sheets (by separate company) for the begin-
a 52/53 week filing election in place for the tax year. The fiscal year or short year
and other deductions (by separate company). These supporting statements,
ning of the year and the end of the year; supporting statements for other income
checkbox must be selected for a 52/53 week filer.
forms and schedules should be copies of the actual documents provided
In the top center block of page 1, enter the AAG’s common parent’s federal
to the Internal Revenue Service, not reproduced versions for state tax pur-
business code number, its federal employer identification number (FEIN), name,
poses. 3) A Proforma U.S. Corporation Income Tax Return Form 1120, with sup-
address (with complete zip code), state of incorporation, common federal parent
corporation name and the federal parent’s FEIN, etc.
porting statements, for each separate entity to support any differences in Form
If notification of Final IRS change is attached, check the box.
20C, line 1, Federal Taxable Income due to capital gains, charitable contribution
If Federal Form 1120-REIT was filed, check the box.
and federal SRLY NOLs. The taxpayer is also required to include copies of
If the Alabama Form 2220AL (which is used to compute underpayment of es-
Schedules K-1 for each entity the corporation held an interest in during the tax-
timated taxes based on an allowable federal method) is attached, check the box.
able year. Itemized depreciation schedules are not required to be attached to
Period Covered:
Form 20C, but should be maintained and available upon request.
Enter the Alabama affiliated group’s total combined assets. Total combined
assets is the sum of each separate entity’s tax year end assets before
eliminations.
File the 2017 return for calendar year, fiscal year or short year that begins in
BE SURE TO FILL OUT ALL APPLICABLE LINES ON PAGE 1 even if de-
2017. Mark the appropriate box at the top of the form for a calendar, fiscal or
tailed schedules are attached. Failure to properly complete the return may result
short year.
in delinquency penalties.
Line 1. Alabama taxable income (sum of all Proforma Forms 20C, line 14).
NOTE: A 52/53 week filer can only file a fiscal year or short year return.
2
Line 1a. Consolidated NOL (from Form 20C-C, Schedule B).
Line 1b. Alabama consolidated taxable income.
estimate penalty is not calculated, estimate penalty will be calculated based on
equal quarterly installments.
Line 2a. Enter the amount of total tax due (6.5% of line 1b).
Other (Penalty on Tax)
Line 2b. A consolidated filing fee is due from an Alabama affiliated group
If the return is not filed on or before the due date (with extensions), enter a
delinquent penalty of 10% of the tax due or $50, whichever is greater. Taxes not
which elects to file an Alabama consolidated return. Using the table below enter
paid by the original due date will be subject to a late payment penalty of 1% per
the amount of tax due. The total assets referred to in the table is the Alabama
month for each month or fraction thereof that the tax remains unpaid, up to 25%,
affiliated group’s total combined assets. In accordance with Alabama’s separate
as provided in §40-2A-11.
entity reporting concept, this is the sum of each entity’s tax year-end assets be-
Line 4d. Interest Due – Enter the sum of interest boxes (estimate interest and
fore eliminations.
Total Assets
Annual Fee
interest on tax).
Estimate Interest (Form 2220AL)
$0 to $2,500,000
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$5,000
Enter amount from Form 2220AL, Part II, line 4b. Estimated tax payments
$2,500,001 to $5,000,000
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$10,000
not paid by each quarterly due date will be subject to interest on the underpay-
$5,000,001 to $7,500,000
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$15,000
ment – determined by applying the underpayment rate established by 26 U.S.C.
$7,500,001 to $10,000,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$20,000
§6621 (as provided by Alabama Code Section 40-18-80.1) to the underpayment
$10,000,001 and over
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$25,000
for the period of underpayment.
Line 2c. Enter the amount of total tax due (sum of lines 2a and 2b).
Must be completed if taxpayer utilizes Form 2220AL, as an alternative method
Line 3a. Enter the tax overpayment carried over from the prior period.
to compute penalty and interest, as a result of underpayment of estimated tax. If
estimate penalty is not calculated, estimate penalty will be calculated based on
equal quarterly installments.
Note: If these payments were made by any corporation other than the AAG par-
Interest on Tax
ent corporation, please attach a detailed list showing the name of the corporation
Enter the amount of interest due on the balance of tax due, computed from
who made the payment, including the FEIN of the corporation and the amount
the due date (without extensions) of this return to the date paid. The Alabama in-
paid.
terest rate is the same as provided in 26 U.S.C. §6621.
Line 3b. Enter the amount of estimated tax payments made for this tax
Line 5. Enter the amount of tax due, or the amount to be refunded. Refunds
Line 4e. TOTAL REDUCTIONS. Enter the sum of Lines 4a through 4d.
period.
Line 3c. Enter the amount of any composite payments made on this line.
Electronic Payment Indicator. Check the box if the payment shown due on
should be entered as a negative or in parenthesis.
Make sure you include the Name and FEIN of the entity making the payment on
this return was made electronically. Payments of $750 or more must be made
your behalf in the space provided. Attach schedule if multiple payments were
Instructions For Schedule AS
electronically.
Line 3d. Enter the amount of any extension payments.
made.
Line 3e. This line is only to be used if the taxpayer is filing an AMENDED RE-
The information requested on this schedule is needed to identify each mem-
TURN. The amount shown should be any payments made with the original return
ber of the AAG that is subject to the Alabama Corporation Income Tax and which
and/or any payments made because of adjustments to the return by the Alabama
may also be subject to the Alabama Business Privilege Tax.
Line 3f. Credits/Exemptions (sum of all Proforma Forms 20C, line16f . Cred-
Department of Revenue.
If the AAG includes more members than the schedule can accommodate,
make additional copies as needed and attach behind page 2 of Form 20C-C.
its/Exemptions for AAGs cannot exceed tax due (line 2a, Form 20C-C) nor can
Attach a copy of Federal Form 851, Affiliations Schedule.
they offset any of the consolidated filing fee. For additional instructions for sep-
Complete Schedule AS, Alabama Affiliations Schedule, for each year a con-
arate company computations for Schedule BC, please see the Schedule BC in-
Column A – List all names of parent and subsidiary corporations included in
solidated return is filed.
structions.
Line 3g. LIFO Reserve Tax Deferral. (sum of all Proforma Forms 20C, line
the Alabama Consolidated Income Tax Return or the Alabama Affiliated Group
16g.)
Line 3h. Total Payments, Credits, and Deferral (add lines 3a through 3g and
Column B – List the Federal Employer Identification Number (FEIN) for each
members.
enter the total).
Line 4a. Credit to 2018 estimated tax. Enter the amount of the overpayment
Column C – List the tax year end (MM/DD/YYYY) for each company included
corporation listed.
Line 4b. Enter the amount of the overpayment you elect to contribute to the
to be carried over to the 2018 estimated taxes.
Column D – Indicate whether the corporation listed filed a separate income
in Schedule AS.
Once the election is made to apply an overpayment to the next year’s
Penny Trust Fund.
Column E – Indicate whether this corporation is new to the Federal Consol-
tax return with Alabama in the prior tax period.
estimated tax and/or contribute to the Penny Trust Fund, the election may
not be changed. The amount of overpayment applied to the estimated tax for the
Column F – Indicate whether the corporation filed an Alabama Business Priv-
idated Group.
following year will not be refunded until after the following year’s tax return has
Instructions for Schedule B
ilege Tax Return for the corresponding tax period.
been filed. Contributions to the Penny Trust Fund are designated for the promo-
Line 4c. Penalty Due – Enter the sum of penalty boxes (late payment esti-
tion of public schools and public health.
For taxable years beginning after December 31, 1984, a net operating loss
mate penalty and other penalty).
(NOL) may be carried forward for a maximum of 15 years. There is no provision
Late Payment Estimate (Form 2220AL) – Enter amount from Form 2220AL,
in Alabama tax law that allows corporations to carry a net operating loss back to
Part II, line 4a. Estimated tax payments not paid by each quarterly due date will
Schedule B must be completed in order to claim the NOL deduction. Copies
prior taxable years.
be subject to an underpayment penalty – determined by applying the underpay-
of the Alabama corporate income tax returns (page 1 only) for all applica-
ment rate established by 26 U.S.C. §6621 (as provided by Alabama Code Sec-
ble years more than six years old must be attached, including tax periods
tion 40-18-80.1) to the underpayment for the period of underpayment. In addition,
where the NOL’s were utilized.
the 10% penalty provided for in Alabama Code Section 40-2A-11 applies to esti-
See §40-18-39(h) which states, “If, in a taxable year before the corpora-
mated tax payments not paid by the quarterly due date.
tion became a member of an Alabama affiliated group that has elected to
Must be completed if taxpayer utilizes Form 2220AL, as an alternative method
to compute penalty and interest, as a result of underpayment of estimated tax. If
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file an Alabama consolidated return, the corporation incurred a net oper-
Column 2. Enter the amount of the net operating loss incurred by the cor-
ating loss, the deductibility of the loss on the Alabama consolidated re-
turn shall be limited to only the amount necessary to reduce to zero the
Column 3. Enter the amount of the net operating loss utilized in prior years
poration for the tax period in Column 1.
Alabama taxable income, calculated on a separate return basis, of the cor-
poration that incurred the NOL. Except as provided in the preceding sen-
Column 4. Enter the amount of the net operating loss to be utilized in the cur-
for the loss listed in Column 2.
tence, the separate return limitation year (SRLY) rules contained in 26
U.S.C. §1502 shall apply.”
Column 5. Enter the remaining balance of the unused net operating loss
rent tax period, not to exceed the remaining balance for this loss period.
for this loss period. (Column 2 – Column 3 – Column 4 = Column 5).
Note: Please complete Form 20C-C, Schedule B, for the AAG Consolidated
The Alabama net operating loss deduction is limited to net operating losses
portion of the NOL only. The separate company Proforma Form 20C, Schedule
incurred by a corporation which did business in Alabama and filed Alabama cor-
B, should be used to compute the separate company NOL’s.
porate income tax returns in prior taxable years.
Note: Please begin the net operating loss schedule with the oldest loss year
first, ending with the most current loss year. Please list loss years only. Tax years
that utilize net operating losses should not be listed. The utilized losses are shown
in column 3.
Column 1. Enter the tax year end (MM/DD/YYYY) in which the net operat-
ing loss was generated.
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