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Blank Alabama 20C PDF Form

The Alabama 20C form is the Corporation Income Tax Return required for corporations operating in Alabama. This form serves as a critical document for reporting federal taxable income and calculating state tax obligations. Completing the Alabama 20C accurately is essential to ensure compliance with state tax laws.

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Article Guide

The Alabama 20C form is a crucial document for corporations operating within the state, serving as the official Corporation Income Tax Return. Designed to capture essential financial information for the tax year, this form includes fields for the corporation's name, address, and federal identification numbers. Corporations must indicate their filing status, whether they are operating solely in Alabama or are part of a multistate operation. The form requires detailed reporting of federal taxable income, adjustments for Alabama-specific tax regulations, and calculations for apportionable income based on the corporation's activities within the state. Additionally, corporations must account for net operating losses and tax credits available under Alabama law. The 20C form also includes sections for reconciliation adjustments, allowing corporations to align their federal taxable income with Alabama taxable income. Accurate completion of this form is essential for compliance with state tax obligations and can significantly impact a corporation's tax liability.

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*2100012C* Alabama

Department of Revenue

Corporation Income Tax Return

•CY

•FY

•SY

•52/53 WK

6 2021

For the year January 1 – December 31, 2021, or other tax year beginning •_______________________, 2021, ending •_______________________, ________

Check

applicable

box:

•6 PL 86-272

•6 returnInitial

•6 returnFinal

•6 returnAmended

•6 auditFederal change

FEDERAL BUSINESS CODE NUMBER			FEDERAL EMPLOYER IDENTIFICATION NUMBER				Filing Status: (see instructions)
•			•				Filing Status: (see instructions)
•			•				• 6 1. Corporation operating only in
NAME •							• 6 1. Corporation operating only in
NAME •							Alabama.
ADDRESS •				SUITE, FLOOR, ETC •			Alabama.
ADDRESS •				SUITE, FLOOR, ETC •			• 6 2. Multistate Corporation –
CITY		STATE	COUNTRY (IF NOT U.S.) 9-DIGIT ZIP CODE				• 6 2. Multistate Corporation –
CITY		STATE	COUNTRY (IF NOT U.S.) 9-DIGIT ZIP CODE				Apportionment (Sch. D-1).
•		•	•	•			• 6 3. Multistate Corporation –
CHECK ONLY ONE BOX. The taxpayer files the following form for federal purposes:					•6		Percentage of Sales (Sch. D-2).
•6 1120	•6 1120-F	•6 1120-REIT		•6 990/990T	•6	Other	• 6 4. Multistate Corporation – Separate
							• 6 4. Multistate Corporation – Separate
This company files as part of	•6 consolidated federal group		•6 consolidated Alabama group				Accounting (Prior written approval
• Federal Parent Name:				FEIN •			required and must be attached).
• Federal Parent Name:				FEIN •			• 6 5. Proforma Return – files as part of
• Alabama Parent Name:				FEIN •			• 6 5. Proforma Return – files as part of
• Alabama Parent Name:				FEIN •			Alabama Affiliated Group.
							Alabama Affiliated Group.
•6 2220AL Attached	•6 Schedule of Adjustments to FTI

cCurrent year's Composite Payment(s)/Electing Pass-Through Entity Credit(s) from

	Schedule CP-B, line 3 (see instructions)			20c	•
	Schedule CP-B, line 3 (see instructions)		. . . . . . . . . . . . . . . . . . . . . . . . . .	. . . 20d	•
d	Extension payment			. . . 20d	•
d	Extension payment	. . . . . . . . . . . . . . . . . . . . . . . . .	. . . . . . . . . . . . . . . . . . . . . . . . . .	. . . 20e	•
e Payments prior to adjustment				. . . 20e	•
e Payments prior to adjustment		. . . . . . . . . . . . . . . . . . . . . . . . .	. . . . . . . . . . . . . . . . . . . . . . . . . .	. . . 20f	•
f Refundable credits (from Schedule BC, Section F, line F3)				. . . 20f	•
f Refundable credits (from Schedule BC, Section F, line F3)				. . . 20g	•
g Total Payments (add lines 20a through 20f)				. . . 20g	•
g Total Payments (add lines 20a through 20f)			. . . . . . . . . . . . . . . . . . . . . . . . . .	. . .	•
21 Reductions/applications of overpayments
a Credit to subsequent year's estimated tax				. . . . . . . . .	. . . . . . .	. . . . . . . . . . . . . . . . . . . . . . . . . . .
b	Penny Trust Fund	. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .		. . .. . . . . .	. . . . . . .	. . . . . . . . . . . . . . . . . . . . . . . . . . .
c	Penalty due (see instructions)	Late Payment Estimate	•	Other		•
d	Interest due (see instructions)	Estimate Interest	•	Interest on Tax		•

e Total reductions (total lines 21a, b, c and d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

22 Total amount due/(refund) (line 19 less 20g, plus 21e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

If you paid electronically check here: 6

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UNLESS A COPY OF THE

FEDERAL RETURN IS

ATTACHED, THIS RETURN

WILL BE CONSIDERED

INCOMPLETE. (SEE ALSO

PAGE 4, OTHER

INFORMATION, NO. 5.)

21a •

21b •

21c •

21d •

21e •

22•

Please

Sign

Here

•6 I authorize a representative of the Department of Revenue to discuss my return and attachments with my preparer.

Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

		(	)
Signature	Title	Date	Daytime Telephone No.

ADOR

2100022C	PAGE 2
ALABAMA 20C – 2021	PAGE 2
Schedule A Reconciliation Adjustments of Federal Taxable Income to Alabama Taxable Income

§40-18-33, Code of Alabama 1975, defines Alabama Taxable Income as federal taxable income without the benefit of the federal net operating loss plus specific additions and less specific deductions. The specific additions and deductions are reflected in the lines provided below. Other reconciliation items include transition adjustments to prevent duplicate deduction or duplicate taxation of items previously deducted or reported on Alabama income tax returns.

ADDITIONS

1	State and local income taxes	1	•
2	Federal exempt interest income (other than Alabama) on state, county and municipal obligations (everywhere)	2	•

3Dividends from corporations in which the taxpayer owns less than 20 percent of stock to the extent properly deducted on

	federal income tax return (see instructions)	3	•
4	Federal depreciation on pollution control items previously deducted for Alabama (see instructions)	4	•
5	Net income from foreclosure property pursuant to §10A-10-1.21 (real estate investment trust)	5	•

6Related members interest or intangible expenses or costs. From Schedule AB (see instructions).

	Total Payments 6a •	minus Exempt Amount 6b •	equals 6c	•
7	Captive REITS: Dividends Paid Deduction (from federal Form 1120-REIT)		. . . . . . 7	•
8	Contributions not deductible on state income tax return due to election to claim state tax credit		. . . . . 8	•
9	•		9	•
10	•		10	•
11	Total additions (add lines 1 through 10)	. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	. . . . . . 11	•

DEDUCTIONS

12	Refunds of state and local income taxes (due to overpayment or over accrual on the federal return)	12	•
13	Interest income earned on direct obligations of the United States	13	•

14Interest income earned on obligations of Alabama or its subdivisions or instrumentalities to extent included in

	federal income tax return (see instructions)	14	•
15	Aid or assistance provided to the Alabama State Industrial Development Authority pursuant to §41-10-44.8(d)	15	•
16	Expenses not deductible on federal income tax return due to election to claim a federal tax credit	16	•
17	Dividends described in 26 U.S.C. §78 from corporations in which taxpayer owns more than 20% of stock (see instructions)	17	•

18Dividend income – more than 20% stock ownership (including that described in 26 U.S.C. §951) from non-U.S.

	corporations to the extent the dividend income would be deductible under 26 U.S.C. §243 if received from domestic corporations. . . .	18	•
19	Dividends received from foreign sales corporations as determined in 26 U.S.C. §922 (see instructions)	19	•
20	Amount of the oil/gas depletion allowance provided by §40-18-16 that exceeds the federal allowance (see instructions)	20	•
21	Additional Alabama depreciation related to Economic Stimulus Act of 2008 (see instructions)	21	•
22	Exemption of gain under §40-18-8.1 (Tech Company) (see instructions)	22	•
23	•	23	•
24	•	24	•
25	Total deductions (add lines 12 through 24)	25	•

26TOTAL RECONCILIATION ADJUSTMENTS (subtract line 25 from line 11 above).

	Enter here and on line 3, page 1 (enclose a negative amount in parentheses)						26 •
	Schedule B	Alabama Net Operating Loss Carryforward Calculation (§40-18-35.1, Code of Alabama 1975)
	Column 1	Column 2	Column 3		Column 4		Column 5	Column 6
	Loss Year End	Amount of Alabama	Amount used in years		Amount used		Remaining unused	Acquired
	MM / DD / YYYY	net operating loss	prior to this year		this year		net operating loss	NOL
•	•		•	•		•		•6
•	•		•	•		•		•6
•	•		•	•		•		•6
•	•		•	•		•		•6
•	•		•	•		•		•6
•	•		•	•		•		•6
•	•		•	•		•		•6
•	•		•	•		•		•6
•	•		•	•		•		•6
•	•		•	•		•		•6
•	•		•	•		•		•6
•	•		•	•		•		•6
•	•		•	•		•		•6
•	•		•	•		•		•6
•	•		•	•		•		•6
Alabama net operating loss (enter here and on line 13, page 1).				•

ADOR

	2100032C	PAGE 3
ALABAMA 20C – 2021		PAGE 3
Schedule C	Allocation of Nonbusiness Income, Loss, and Expense – Use only if you checked Filing Status 2, page 1

Identify by account name and amount, all items of nonbusiness income, loss and expense removed from apportionable income and those items which are directly allocable to Alabama. Adjustment(s) must also be made for any proration of expenses under Alabama Income Tax Rule 810-27-1-.01, which states, “Any allowable deduction that is applicable to both business and nonbusiness income of the taxpayer shall be prorated to each class of income in determining income subject to tax as provided…” (See instructions.)

	ALLOCABLE GROSS INCOME / LOSS		RELATED EXPENSE			NET OF RELATED EXPENSE
DIRECTLY ALLOCABLE ITEMS OF	Column A	Column B	Column C	Column D		Column E	Column F
NONBUSINESS INCOME OR LOSS	Everywhere	Alabama	Everywhere	Alabama		Everywhere	Alabama
1a •	•	•	•	•	•		•
b •	•	•	•	•	•		•
c •	•	•	•	•	•		•
d •	•	•	•	•	•		•
e •	•	•	•	•	•		•

2 NET NONBUSINESS INCOME / LOSS		Column E	Column F
Enter Column E total ((income)/loss) on line 5 of page 1. Enter Column F total (income/(loss)) on line 9 of page 1		•	•

Schedule D-1	Apportionment Factor – Use only if Filing Status 2 or Filing Status 5, page 1 with Multi-State Operations –
	Amounts must be Positive (+) Values

		SALES			ALABAMA	EVERYWHERE
1	Gross receipts from sales		. . . . . . . . . . . . . . . . . . . . . . . . . . . .	. . . •		•
2	Dividends		. . . . . . . . . . . . . . . . . . . . . . . . . . . .	. . . •		•
3	Interest		. . . . . . . . . . . . . . . . . . . . . . . . . . . .	. . . •		•
4	Rents	. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	. . . . . . . . . . . . . . . . . . . . . . . . . . . .	. . . •		•
5	Royalties	. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	. . . . . . . . . . . . . . . . . . . . . . . . . . . .	. . . •		•
6	Gross proceeds from capital and ordinary gains . . .		. . . . . . . . . . . . . . . . . . . . . . . . . . . .	. . . •		•
7	Other •		(Federal 1120, line •	) •		•
8	Total Sales			. . 8a •		8b •
9	Line 8a/8b = ALABAMA APPORTIONMENT FACTOR (Enter here and on line 7, page 1) . .				. . . . . . . . . . . . . . . . . . . .	. . . . . . . . . . . . . . . . . . . . . . .
	Schedule D-2	Percentage of Sales – Use only if you checked Filing Status 3, page 1 – See instructions

•

DO NOT USE THIS SCHEDULE IF ALABAMA SALES EXCEED $100,000.		ALABAMA	EVERYWHERE
1	Gross receipts from sales	•	•
2	. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Tax due (multiply line 1, Alabama by .0025) (enter here and on page 1, line 15)	•

ADOR

	2100042C	PAGE 4
ALABAMA 20C – 2021		PAGE 4
Schedule E	Federal Income Tax (FIT) Deduction/(Refund)

Only method 1552(a)(1) can be used to calculate the Federal Income Tax Deduction.

(a)If this corporation is an accrual-basis taxpayer and files a separate (nonconsolidated) federal income tax return with the IRS, skip to line 6 and enter the amount of federal income tax liability shown on Form 1120.

(b)If this corporation is a cash-basis taxpayer and files a separate (nonconsolidated) federal income tax return with the IRS, skip to line 6 and

enter the amount of federal income tax paid during the year.

(c)If this corporation is a member of an affiliated group which files a consolidated federal return, enter the separate company income from line 30 of the proforma 1120 for this company on line 1. You must complete lines 1-5 before moving on to line 6.

Items excluded from Alabama Taxable Income must be added to adjusted total income on line 8b to calculate the Federal Income Tax deduction. (This includes any amounts listed on Schedule A lines 13, 14, 17, 18, and 19).

1	This company’s separate federal taxable income	1	•
2	Total positive consolidated federal taxable income	2	•
3	This company’s percentage (divide line 1 by line 2)	3	•	%
4	Consolidated federal income tax (liability/payment)	4	•
5	Federal income tax for this company (multiply line 3 by line 4)	5	•
6	Federal income tax to be apportioned	6	•
7	Alabama income, page 1, line 10	7	•
8a Adjusted total income, page 1, line 4		8a •
8b Income excluded from Alabama Taxable Income (include any amounts listed on Schedule A lines 13, 14, 17, 18, and 19)		8b •
8c Adjusted Total Income including items excluded from Alabama Taxable Income (Add lines 8a and 8b)		8c	•
9	Federal income tax ratio (divide line 7 by line 8c)	9	•	%
10	Federal income tax apportioned to Alabama (multiply line 6 by line 9)	10	•
11	Less refunds or adjustments	11	•
12 Net federal income tax deduction / <refund> (enter here and on Page 1, line 11a)		12	•

Other Information

1.Briefly describe your Alabama operations. •

2.List locations of property within Alabama (cities and counties). •

3.List other states in which corporation operates, if applicable. •

4.Indicate your tax accounting method:

• 6 Accrual • 6 Cash • 6 Other •

5.If this corporation is a member of an affiliated group which files a consolidated federal return, the following information must be provided:

(a)Copy of Federal Form 851, Affiliations Schedule. Identify by asterisk or underline the names of those corporations subject to tax in Alabama.

(b)Signed copy of consolidated Federal Form 1120, pages 1-6, as filed with the IRS.

(c)Copy of the spreadsheet of income statements; all supporting schedules for all legal entities that file as part of the consolidated federal group including (but not limited to) a copy of the spreadsheet of income statements (which includes a separate column that identifies the eliminations and adjustments used in completing the federal consolidated return), beginning and ending balance sheets, Schedule M-3 for the entire federal consolidated group.

(d)Copy of federal Schedule K-1 for each tax entity that the corporation holds an interest in at any time during the taxable year.

(e)Copy of federal Schedule(s) UTP.

6.Enter this corporation’s federal net income (see instructions for page 1, line 1) for the last three (3) years, as last determined (e.g.: per amended federal return or IRS audit).

	2020 •___________________	2019 •_________________ 2018 •___________________
7.	Check if currently being audited by the IRS. • 6 If so, enter the periods: •________________________________________________
8.	Location of the corporate records:	Street address: •
	City: •		State: •			ZIP: •
9.	Person to contact for information concerning this return:
	Name: •		Email Address: •			Telephone: • (	)
10.	Files Business Privilege Tax Return. • 6		FEIN: •	/	/		/	/
11.	State of Incorporation: •		Date of Incorporation: •	/	/	Date Qualified in Alabama: •	/	/

Nature of business in Alabama: •

Paid

Preparer’s

Use Only

Preparer’s signature

Firm’s name (or yours,		•
if self-employed)	•
and address	•

Date		Preparer’s Tax Identification Number
•	Check if	•6 •
•	self-employed	•6 •
Tel. No. • (	)	E.I. No. •
		ZIP Code •

ADOR

ALABAMA 20C – 2021			PAGE 5
Non-payment returns,	Alabama Department of Revenue	Payment returns, mail with	Alabama Department of Revenue
mail to:	Income Tax Administration Division	payment voucher (Form BIT-V) to:	Income Tax Administration Division
	Corporate Tax Section		Corporate Tax Section
	PO Box 327430		PO Box 327435
	Montgomery, AL 36132-7430		Montgomery, AL 36132-7435
Federal audit change
returns, mail to:	Alabama Department of Revenue
	Income Tax Administration Divisionn
	Corporate Tax Section

PO Box 327451

Montgomery, AL 36132-7451

ADOR

➤ PDF File

Form Specifications

Fact Name	Fact Description
Form Title	The Alabama 20C form is officially titled the "Corporation Income Tax Return." It is used for reporting corporate income tax in Alabama.
Filing Period	This form is applicable for the tax year beginning January 1 and ending December 31, 2010, or for other specified tax years.
Governing Law	The Alabama 20C form is governed by §40-18-33 of the Code of Alabama 1975, which defines Alabama Taxable Income.
Filing Status	Corporations must indicate their filing status, which can include options such as single-state, multistate, or consolidated returns.
Net Operating Loss	Corporations can report net operating losses (NOL) on this form, specifically as outlined in §40-18-35.1 of the Code of Alabama 1975.
Alabama Apportionment Factor	The form requires calculation of the Alabama apportionment factor, which determines the portion of income subject to Alabama tax.
Signature Requirement	A signature is required from an authorized representative of the corporation, affirming the accuracy of the information provided.
Payment Instructions	Corporations must mail their completed 20C form along with any payment to the appropriate addresses specified by the Alabama Department of Revenue.

Alabama 20C: Usage Guidelines

Completing the Alabama 20C form requires careful attention to detail. This form is essential for corporations operating in Alabama to report their income and tax obligations. Follow these steps to fill out the form accurately.

Gather necessary information, including your corporation's name, address, and federal employer identification number (FEIN).
Indicate the filing status by checking the appropriate box on the form.
Fill in the corporation's state of incorporation, date of incorporation, and date qualified in Alabama.
Provide a brief description of the nature of your business in Alabama.
Complete lines for federal taxable income, net operating loss, and reconciliation adjustments as applicable.
Calculate the Alabama apportionment factor using Schedule D-1 if your corporation operates in multiple states.
Enter the amount of Alabama income before federal income tax deduction on the appropriate line.
Complete the section for federal income tax deductions, including any applicable credits.
Calculate the total amount due or refund by subtracting payments, credits, and deferrals from the tax amount.
Sign and date the form, ensuring that all information is complete and accurate.

Once you have filled out the Alabama 20C form, review it for any errors or omissions. Make sure to attach any required schedules or documentation before submitting it to the Alabama Department of Revenue. Proper filing will help avoid penalties and ensure compliance with state tax regulations.

Your Questions, Answered

What is the Alabama 20C form?

The Alabama 20C form is the Corporation Income Tax Return for businesses operating in Alabama. It is used to report the corporation's income, calculate the tax owed, and determine any deductions or credits applicable to the business for the tax year.

Who needs to file the Alabama 20C form?

Any corporation that conducts business in Alabama must file the Alabama 20C form. This includes corporations incorporated in Alabama as well as those incorporated in other states but doing business within Alabama. If your corporation is part of a consolidated federal return, additional information may be required.

What is the filing period for the Alabama 20C form?

The filing period for the Alabama 20C form typically runs from January 1 to December 31 of the tax year. However, corporations may also file for a different tax year by indicating the start and end dates on the form.

What information is required to complete the Alabama 20C form?

To complete the Alabama 20C form, corporations must provide their federal business code number, federal employer identification number (FEIN), filing status, name, address, state of incorporation, date of incorporation, and nature of business. Additionally, corporations must report their federal taxable income, adjustments, deductions, and credits as outlined in the form.

Are there any penalties for late filing of the Alabama 20C form?

Yes, there are penalties for late filing of the Alabama 20C form. If a corporation fails to file by the due date, it may incur penalties and interest on any unpaid tax. It is essential to file the form on time to avoid these additional charges.

Where do I send the completed Alabama 20C form?

The completed Alabama 20C form should be mailed to the Alabama Department of Revenue. Corporations must send the form to the appropriate address based on whether they are submitting a payment or a non-payment return. Specific mailing addresses are provided on the form itself.

Common mistakes

Incorrect Filing Status Selection: Many individuals fail to accurately select the appropriate filing status. The Alabama 20C form offers several options, including "Corporation operating only in Alabama," "Multistate Corporation," and "Proforma Return." Choosing the wrong status can lead to significant errors in tax calculations and potential penalties.
Missing Federal Employer Identification Number (FEIN): Omitting the FEIN is a common mistake. This number is essential for identifying the corporation and ensuring proper processing of the return. Without it, the return may be considered incomplete.
Failure to Attach Required Schedules: The Alabama 20C form requires various schedules, such as Schedule A for reconciliation adjustments and Schedule D-1 for apportionment factors. Not including these schedules can result in delays or rejections of the return.
Incorrect Calculation of Alabama Taxable Income: Many filers miscalculate their Alabama taxable income by failing to adjust for federal net operating losses or by not properly accounting for specific additions and deductions. This can lead to incorrect tax liability assessments.
Neglecting to Sign the Return: A simple yet critical oversight is forgetting to sign the return. The signature certifies that the information provided is accurate. An unsigned return may be deemed invalid and could lead to complications with the Alabama Department of Revenue.

Documents used along the form

The Alabama 20C form is a crucial document for corporations filing their income tax returns in Alabama. Alongside this form, several other documents and forms are often required to ensure compliance with state tax regulations. Below is a list of these additional forms, each serving a specific purpose in the tax filing process.

Schedule A: This schedule reconciles federal taxable income to Alabama taxable income. It includes specific additions and deductions that are necessary for accurate reporting.
Schedule B: This form calculates the Alabama Net Operating Loss (NOL) carryforward. It tracks losses from previous years that can offset future taxable income.
Schedule C: Used for the allocation of nonbusiness income, loss, and expense, this schedule is essential for corporations with multiple income sources.
Schedule D-1: This apportionment factor schedule determines the portion of income that is taxable in Alabama versus other states. It considers property, payroll, and sales factors.
Schedule D-2: This schedule provides the percentage of sales for multistate corporations, which is necessary for determining the Alabama sales factor.
Schedule E: This form calculates the federal income tax deduction or refund. It is critical for corporations that are part of a consolidated federal return.
Schedule F: This schedule outlines any credits or exemptions applicable to the corporation, such as the Alabama Enterprise Zone Credit.
Form BIT-V: The Business Privilege Tax payment voucher is used for submitting payments related to the Alabama Business Privilege Tax, ensuring timely compliance.
Federal Form 851: Required for corporations that are part of an affiliated group, this form provides details about corporate affiliations and is essential for consolidated tax filings.

Completing the Alabama 20C form along with the associated schedules and forms is vital for accurate tax reporting. Each document plays a significant role in ensuring that corporations fulfill their tax obligations in Alabama. Please ensure all required forms are completed accurately and submitted on time to avoid penalties.

Similar forms

The Alabama 20C form is a crucial document for corporations operating in Alabama, particularly for tax reporting purposes. Several other forms share similarities with the Alabama 20C, each serving specific functions in the realm of corporate taxation. Here’s a look at seven forms that are similar to the Alabama 20C, highlighting their commonalities:

Federal Form 1120: This is the U.S. Corporation Income Tax Return. Like the Alabama 20C, it is used to report income, gains, losses, deductions, and credits, ensuring compliance with federal tax regulations.
California Form 100: This form is used by corporations to report income and calculate taxes owed in California. It mirrors the Alabama 20C in structure and purpose, focusing on corporate income tax obligations at the state level.
New York State Form CT-3: Similar to the Alabama 20C, this form is for New York corporations to report their income and determine their state tax liability. Both forms require detailed financial information and adjustments to federal taxable income.
Texas Franchise Tax Report: This document is required for corporations operating in Texas. It serves a similar purpose as the Alabama 20C, where companies report their revenue and calculate the tax owed based on their business activities.
Florida Corporate Income Tax Return (Form F-1120): This form is utilized by corporations in Florida for income tax reporting. Like the Alabama 20C, it includes sections for income, deductions, and tax calculations.
Illinois Form 1120: This is the Illinois Corporation Income and Replacement Tax Return. It is akin to the Alabama 20C in that it requires corporations to report their income and calculate state tax liabilities based on federal income.
Georgia Form 600: This form is used by corporations in Georgia to report income and compute tax owed. It parallels the Alabama 20C in its requirement for detailed financial disclosures and tax calculations.

Understanding these forms can help corporations navigate their tax obligations more effectively, ensuring compliance with both state and federal regulations. Each form has its unique requirements, but they all serve the common goal of accurately reporting corporate income and calculating taxes owed.

Dos and Don'ts

When filling out the Alabama 20C form, it is crucial to follow specific guidelines to ensure accuracy and compliance. Below is a list of things you should and shouldn't do:

Do double-check all entries for accuracy before submission.
Do use the correct federal employer identification number (FEIN).
Do ensure that all required schedules are attached, including any necessary documentation.
Do sign and date the form where indicated.
Don't leave any required fields blank; provide all necessary information.
Don't submit the form without reviewing the instructions thoroughly.
Don't forget to include any adjustments or reconciliations required for Alabama taxable income.
Don't assume that prior year information is still valid; verify all data for the current tax year.

Misconceptions

Misconception 1: The Alabama 20C form is only for corporations operating solely in Alabama.

This is incorrect. The form is designed for both Alabama-only corporations and multistate corporations. Multistate corporations must complete additional sections to accurately report their income and apportionment.

Misconception 2: Filing a 20C form is optional for corporations.

In reality, filing this form is mandatory for corporations that meet certain criteria, including those generating income in Alabama. Failure to file can result in penalties.

Misconception 3: The 20C form is the same as the federal tax return.

This is not true. While there are similarities, the 20C form specifically addresses Alabama tax laws and requires adjustments to federal taxable income to determine Alabama taxable income.

Misconception 4: A corporation can file the 20C form without supporting documentation.

This is misleading. Corporations must include necessary schedules and documentation, such as federal returns and supporting calculations, to ensure the completeness of their filing.

Misconception 5: The due date for the 20C form is the same as the federal return.

Actually, the due date for the Alabama 20C form may differ. Corporations should confirm the specific deadlines to avoid late fees and interest charges.

Key takeaways

Filling out the Alabama 20C form is a critical process for corporations operating in Alabama. Here are key takeaways to guide you through this task:

Understand the Filing Status: Determine whether your corporation operates solely in Alabama or is part of a multistate operation. This will affect how you complete the form.
Accurate Reporting of Income: Ensure that federal taxable income is reported correctly. Adjustments may be necessary to align with Alabama tax laws.
Apportionment Factors: If your corporation operates in multiple states, you must calculate the Alabama apportionment factor accurately. This involves determining the ratio of Alabama sales, payroll, and property to total sales, payroll, and property.
Nonbusiness Income: Identify and report any nonbusiness income or loss separately. This includes income that is not related to your corporation's primary business activities.
Net Operating Loss (NOL) Carryforward: If applicable, calculate and report any NOL carryforwards. This can reduce taxable income in future years.
Credits and Deductions: Be aware of available tax credits and deductions that may apply to your corporation. These can significantly reduce your tax liability.
Signature Requirement: The form must be signed by an authorized representative of the corporation. This declaration confirms the accuracy of the information provided.
Timely Submission: Submit the completed form by the due date to avoid penalties. If you need an extension, ensure that you file the appropriate request in advance.

By following these key points, you can navigate the complexities of the Alabama 20C form with greater confidence and accuracy.

1	FEDERAL TAXABLE INCOME (see instructions)		. . . . .	. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2	Federal Net Operating Loss (included in line 1)		. . . . .	. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3	Reconciliation adjustments (from line 26, Schedule A)		. . . . .	. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4	Federal taxable income adjusted to Alabama Basis (add lines 1, 2 and 3)		. . . . .	. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5	Net nonbusiness (income)/loss – Everywhere (from Schedule C, line 2, col. E)		. . . . .	. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6 Apportionable income (add lines 4 and 5)			. . . . .	. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7	Alabama apportionment factor (from line 9, Schedule D-1)		. . . . .	. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8	Income apportioned to Alabama (multiply line 6 by line 7)		. . . . .	. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9	Net nonbusiness income/(loss) – Alabama (from Schedule C, line 2, col. F)		. . . . .	. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10	Alabama income before federal income tax deduction (line 8 plus line 9)		. . . . .	. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11a Federal income tax deduction /(refund) (from line 12, Schedule E)			. . . . .	. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	b Small Business Health Insurance Premiums (see instructions)		. . . . .	. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12	Alabama income before net operating loss (NOL) carryforward (line 10 less lines 11a and b) . . . .			. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13	Alabama NOL deduction (see instructions)		. . . . .	. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14	Alabama taxable income (line 12 less line 13)		. . . . .	. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15	Alabama Income Tax (6.5% of line 14)		. . . . .	. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16 LIFO Reserve Tax Deferral (see instructions)			. . . . .	. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17	Alabama Income Tax after LIFO Reserve Tax Deferral (line 15 less line 16)		. . . . .	. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18	Nonrefundable Credits (from Schedule BC, Section E, line E3)		. . . . .	. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
19	Net tax due Alabama (line 17 less line 18)		. . . . .	. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
20	Payments:		20a
	a	Carryover from prior year		•
			20b
	b	Current year's estimated tax payments		•