Well-respected House Ways & Means-Education Committee Chair Danny Garrett (R-Trussville) has introduced HB 379, a bill designed to provide guidelines and a safe harbor for employers who have traveling employees or remote...more
4/16/2025
/ Employee Mobility ,
Employees ,
Employer Liability Issues ,
Employer Responsibilities ,
Income Taxes ,
Local Taxes ,
New Legislation ,
Proposed Legislation ,
Remote Working ,
Reporting Requirements ,
Safe Harbors ,
State Taxes ,
Tax Liability
Each year we are asked to predict the business tax-related bills that died in the last legislative session but will likely be re-introduced in one form or another, as well as the tax issues that we expect to see addressed for...more
2/3/2025
/ Alabama ,
Business Taxes ,
Corporate Taxes ,
Department of Revenue ,
Income Taxes ,
IRS ,
Legislative Agendas ,
Sales Tax ,
SALT ,
State Legislatures ,
State Taxes ,
Tax Credits ,
Tax Legislation ,
Tax Planning ,
Tax Reform
Each year we are asked to predict the business tax-related bills that died in the last legislative session but will likely be re-introduced in one form or another, as well as the tax issues that we expect to see addressed for...more
1/22/2025
/ Alabama ,
Income Taxes ,
Legislative Agendas ,
State and Local Government ,
State Legislatures ,
State Taxes ,
Tax Credits ,
Tax Cuts and Jobs Act ,
Tax Legislation ,
Tax Planning ,
Tax Reform
In 2021, the Alabama Legislature unanimously enacted an elective pass-through entity tax (PTE Tax) as a workaround to the so-called “SALT Cap,” which was part of the Tax Cuts and Jobs Act of 2017. The Alabama Electing...more
7/12/2023
/ Alabama ,
Department of Revenue ,
Income Taxes ,
IRS ,
Pass-Through Entities ,
PTEs ,
SALT ,
State and Local Government ,
State Taxes ,
Tax Cuts and Jobs Act ,
Tax Returns
There seems to be an increased number of so-called “residency audits” being conducted by the Alabama Department of Revenue (ALDOR), as well as by other state tax authorities. These audits often result from the taxpayer filing...more
As we previously reported, the Multistate Tax Commission has undertaken an ambitious project on the state taxation of partnerships. Their partnership work group consists of volunteers from numerous state revenue departments,...more
Readers may recall that the Alabama Legislature unanimously enacted an elective pass-through entity tax (PTE Tax) last year as a workaround to the so-called “SALT Cap,” which was part of the Tax Cuts and Jobs Act of 2017. The...more
6/27/2022
/ Alabama ,
Income Taxes ,
IRS ,
Local Taxes ,
Pass-Through Entities ,
SALT ,
State and Local Government ,
State Taxes ,
Tax Cuts and Jobs Act ,
Tax Deductions ,
Tax Returns
Because 2022 is an election year, the start date for the Alabama Legislature’s regular session comes early: Tuesday, January 11. As we do annually, here are some unofficial prognostications on the major items of tax...more
12/17/2021
/ Alabama ,
Income Taxes ,
Internal Revenue Code (IRC) ,
Legislative Agendas ,
Local Taxes ,
Sales & Use Tax ,
State and Local Government ,
State Legislatures ,
State Taxes ,
Tax Credits ,
Tax Legislation
Earlier this year, Alabama became one of 19 or so states to enact a pass-through entity tax as a workaround to the so-called "SALT Cap" enacted as part of the Tax Cuts and Jobs Act of 2017, which limits the deductibility of...more
11/15/2021
/ Alabama ,
Department of Revenue ,
Income Taxes ,
IRS ,
Local Taxes ,
Pass-Through Entities ,
SALT ,
State and Local Government ,
State Taxes ,
Tax Cuts and Jobs Act ,
Tax Deductions ,
Tax Returns ,
U.S. Treasury
Earlier this year, Alabama became one of 19 or so states to enact a pass-through entity tax as a workaround to the so-called “SALT Cap” enacted as part of the Tax Cuts and Jobs Act of 2017 that limits the deductibility of...more
9/7/2021
/ Alabama ,
Department of Revenue ,
Income Taxes ,
Internal Revenue Code (IRC) ,
IRS ,
Partnerships ,
Pass-Through Entities ,
Proposed Rules ,
S-Corporation ,
Shareholders ,
State and Local Government ,
Tax Cuts and Jobs Act ,
Tax Deductions
On April 27, 2021, the Multistate Tax Commission (MTC) Uniformity Committee voted to accept its Standing Subcommittee’s recommendation to create a work group to study several key issues relating to multistate taxation of...more
The Alabama Department of Revenue issued helpful guidance on January 7, following its December 18, 2020 guidance implementing Governor Ivey’s landmark Supplemental Emergency Proclamation. The new guidance affirms the...more
1/12/2021
/ Alabama ,
Business Expenses ,
C-Corporation ,
CARES Act ,
Consolidated Appropriations Act (CAA) ,
Coronavirus/COVID-19 ,
Economic Impact Payments ,
Economic Injury Disaster Loans ,
Excise Tax ,
Financial Institutions ,
Governor Ivey ,
Income Taxes ,
Internal Revenue Code (IRC) ,
IRS ,
New Guidance ,
Paycheck Protection Program (PPP) ,
Relief Measures ,
Tax Deductions
In a welcomed move by the business community, Gov. Kay Ivey on Friday morning issued a proclamation that would exempt certain CARES Act benefits from Alabama income tax and would extend the sunset (expiration) date of two of...more
How is taxable income determined in your state? To what extent is the state income tax base aligned with the federal income tax base?
Alabama levies a corporate income tax on business entities classified as taxable or “C”...more
10/12/2020
/ C-Corporation ,
Corporate Taxes ,
Department of Revenue ,
Exemptions ,
Filing Requirements ,
Franchise Taxes ,
Income Taxes ,
Nexus ,
S-Corporation ,
State and Local Government ,
State Taxes ,
Tax Credits ,
Tax Deductions ,
Tax Rates
On March 13, 2020, President Trump issued an emergency declaration in response to the ongoing Coronavirus Disease 2019 (COVID-19) pandemic. Recognizing the rapidly evolving state of affairs and the harm to individuals and to...more
3/23/2020
/ Coronavirus/COVID-19 ,
Families First Coronavirus Response Act (FFCRA) ,
Filing Deadlines ,
Income Taxes ,
Paid Family Leave Law ,
Paid Leave ,
Payroll Taxes ,
Relief Measures ,
Sick Leave ,
Sick Pay ,
State and Local Government ,
State Taxes ,
Tax Credits
As previously reported, in Ex parte Russell County Community Hospital, the Alabama Supreme Court announced that all software, including customized software created for a particular user, is "tangible personal property" and...more
1/24/2020
/ Department of Revenue ,
Economic Presence Nexus ,
Final Rules ,
Grocery Stores ,
Income Taxes ,
Legislative Agendas ,
Personal Property ,
Property Tax ,
Proposed Amendments ,
Retroactive Application ,
Sales & Use Tax ,
Software ,
State Taxes
On December 16, the Internal Revenue Service (IRS) and the Treasury Department issued proposed regulations... that provide some good news and needed clarification for C corporations, individuals, and S corporations and other...more
12/19/2019
/ C-Corporation ,
Charitable Donations ,
Income Taxes ,
Internal Revenue Code (IRC) ,
IRS ,
Limited Liability Company (LLC) ,
Pass-Through Entities ,
Popular ,
Proposed Regulation ,
PTEs ,
S-Corporation ,
Safe Harbors ,
SALT ,
Scholarship Granting Organizations (SGOs) ,
State Taxes ,
Tax Credits ,
Tax Deductions ,
Tax Planning ,
U.S. Treasury
The influential Business Council of Alabama (BCA), founded in 1985, and the Birmingham Business Alliance (BBA), the state’s oldest and largest chamber of commerce, have each officially approved their 2020 legislative agendas....more
12/10/2019
/ Affordable Care Act ,
Corporate Taxes ,
Economic Development ,
Income Taxes ,
Legislative Agendas ,
Opportunity Zones ,
Public Policy ,
SALT ,
State Budgets ,
State Taxes ,
Tax Cuts and Jobs Act ,
Tax Incentives
As 2019 comes to a close, while most people are busy making holiday plans, dutiful tax advisors and financial planners are burning the midnight oil to minimize their clients’ tax bills that will be due in a few short months....more
12/5/2019
/ ABLE Accounts ,
Charitable Donations ,
Corporate Taxes ,
Federal Taxes ,
Income Taxes ,
IRS ,
SALT ,
Scholarship Granting Organizations (SGOs) ,
Section 529 Program ,
State Taxes ,
Tax Credits ,
Tax Deductions ,
Tax Liability ,
Tax Planning
Now that the Treasury Department and Internal Revenue Service have issued ?nal regulations to address at least some variations of so-called ‘‘SALT cap workarounds’’ to the Tax Cuts and Jobs Act’s limitation on individual...more
Now that the dust has settled following the issuance of the final “SALT cap workaround” regulations by the Treasury Department, here’s a summary of those regulations, the IRS guidance issued in connection with the final...more
7/15/2019
/ C-Corporation ,
Charitable Donations ,
Final Rules ,
Income Taxes ,
Internal Revenue Code (IRC) ,
IRS ,
New Guidance ,
Pass-Through Entities ,
Proposed Regulation ,
PTEs ,
Safe Harbors ,
SALT ,
Scholarship Granting Organizations (SGOs) ,
State and Local Government ,
State Taxes ,
Tax Credits ,
Tax Cuts and Jobs Act ,
Tax Deductions ,
Tax Planning ,
U.S. Treasury
On Tuesday night, May 28, Gov. Kay Ivey signed into law House Bill 419, the Alabama Financial Institution Excise Tax Reform Act of 2019 (FIETRA), which resulted from a collaborative effort between the banking community,...more
5/31/2019
/ Banking Sector ,
Corporate Taxes ,
Department of Revenue ,
Excise Tax ,
Federal Agency Taskforce ,
Federal Taxes ,
Financial Institutions ,
Governor Ivey ,
Income Taxes ,
New Legislation ,
State Taxes ,
Tax Cuts and Jobs Act ,
Tax Planning ,
Tax Reform
Two landmark bills were introduced in the Alabama Legislature on April 11, potentially affecting numerous businesses in the state. Committees of the House of Representatives are expected to consider the Financial Institution...more
4/16/2019
/ Banking Sector ,
Excise Tax ,
Financial Institutions ,
Income Taxes ,
Innovation ,
Proposed Legislation ,
Research and Experiment Tax Credit ,
State Taxes ,
Tax Credits ,
Tax Deductions ,
Tax Incentives ,
Tax Reform
As automotive suppliers begin work on their 2018 tax returns and implement plans for their capital expenditures in 2019, suppliers should look at a potential tax credit to help offset the costs of tooling: the Research and...more
2/20/2019
/ Automotive Industry ,
Capital Expenditures ,
Car Dealerships ,
Corporate Taxes ,
Economic Development ,
Income Taxes ,
Internal Revenue Code (IRC) ,
IRS ,
Manufacturers ,
R&D ,
R&D Tax Credits
Just before Christmas, the influential Public Affairs Research Council of Alabama (PARCA), the nonpartisan think tank headquartered at Samford University, released its annual report, How Alabama Taxes Compare. The contents...more