The Alabama Business Privilege Tax Return, commonly referred to as the Alabama PPT form, is a crucial document that businesses in Alabama must file to report their annual business privilege tax. This form is designed for various types of entities, including S Corporations and Limited Liability Entities, and helps determine the tax obligations based on the entity's net worth and other financial metrics. Understanding the requirements and process for completing this form is essential for compliance and can significantly impact a business's financial health.
The Alabama Business Privilege Tax Return and Annual Report, commonly referred to as the Alabama PPT form, is a crucial document for various business entities operating in the state. This form is essential for S Corporations, Limited Liability Entities (LLEs), and disregarded entities, as it facilitates the reporting of business privilege taxes and ensures compliance with state regulations. The form requires taxpayers to provide detailed information, including their legal name, federal employer identification number (FEIN), and contact details. Additionally, businesses must indicate their type and provide information regarding their incorporation or organization. The PPT form also includes sections for computing the amount of tax due or any potential refund, as well as penalties and interest if applicable. Understanding how to accurately complete this form is vital for businesses to avoid penalties and ensure they meet their tax obligations on time. With clear guidelines and a structured approach, navigating the Alabama PPT form can be a straightforward process for business owners.
FORM
PPT 2022 *220001PP*
Alabama Department of Revenue
Alabama Business Privilege Tax Return
and Annual Report
1a
6 Calendar Year (Taxable Year 2022 – determination period beginning
and ending 12/31/2021)
1b
6 Fiscal Year (Taxable Year 2022 – determination period beginning
and ending
/2022)
1c
6 Amended Return (Attach Supporting Documentation)
1d
6 52/53 Week Filer
Type of taxpayer (check only one): 2a
6 S Corporation
2b
6 Limited Liability Entity
2c 6 Disregarded Entity
2d
6 LLE taxed as S Corporation
TAXPAYER INFORMATION
3a LEGAL NAME OF
6
FEIN NOT REQUIRED
BUSINESS ENTITY
3b FEIN
(SEE INSTRUCTIONS)
3c MAILING
3d BPT ACCOUNT NO.
ADDRESS
3h FEDERAL BUSINESS CODE NO.
3e CITY
3f
STATE
3g ZIP CODE
(NAICS) (SEE WWW.CENSUS.GOV)
3i CONTACT PERSON
3j CONTACT PERSON’S
CONCERNING THIS FORM
PHONE NO.
3k TAXPAYER’S
E-MAIL ADDRESS
RETURN INFORMATION
4a
6 S Corporation President Information Change on attached Schedule AL-CAR (Corporation Annual Report)
4b
6 S Corporation Secretary Information Change on attached Schedule AL-CAR (Corporation Annual Report)
5a
Date of Incorporation or Organization
5b State of Incorporation or Organization
5c County of Incorporation or Organization
COMPUTATION OF AMOUNT DUE OR REFUND DUE
Amount Due
6 Secretary of State corporate annual report fee $10 (corporations only)
7 Less: Annual report fee previously paid for the taxable year .
. . . . . .
. . . . . . . . . . . . . . . . .
7
8 Net annual report fee due (line 6 less line 7)
. . . . . . . . . . . . . . . . . . .
. . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . .
8
9
Privilege tax due (Page 2, Part B, line 19)
10
Less: Privilege tax previously paid for the taxable year
11
Net privilege tax due (line 9 less line 10)
12
Penalty due (see instructions)
. . . . . . . . . . . . . . . .
13
Interest due (see instructions)
14
Total privilege tax due (add lines 11, 12 and 13)
15
Net tax due (add lines 8 and 14)
16Payment due with return if line 15 is positive. (Form BPT-V must be submitted if payment is made by check.)
Full payment of any amount due for a taxable year is due by the original due date of the return (without
consideration of any filing extensions in place)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
17
Amount to be refunded if line 15 is negative
18
Family LLE Election attached
6 (Signature required below)
19
Check here if paid electronically
Please
Sign
Here
6I 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.
Title
Date
Ownerʼs/Officerʼs
Signature
Paid
Preparerʼs signature
Preparer’s
Firmʼs name (or yours, if
E.I. No.
Use Only
self-employed) and address
ZIP Code
Phone No.
Preparerʼs SSN/PTIN
If you are not making a payment, mail your return to:
If you are making a payment, mail your return, Form BPT-V, and payment to:
Business Privilege Tax Section
P.O. Box 327431
P.O. Box 327320
Montgomery, AL 36132-7431
Montgomery, AL 36132-7320
Telephone Number: (334) 242-1170
Web site: www.revenue.alabama.gov
ADOR
BUSINESS PRIVILEGE
*220002PP*
PPT
TAXABLE/FORM YEAR
Alabama Business Privilege Tax Pass-Through Entity
PAGE 2
2022
Privilege Tax Computation Schedule
1a.
FEIN
1b. LEGAL NAME OF BUSINESS ENTITY
1c. DETERMINATION PERIOD END DATE (BALANCE SHEET DATE)
V
(MM/DD/YYYY)
PART A – NET WORTH COMPUTATION
I. S-Corporations
1
Issued capital stock and additional paid in capital (without reduction for treasury stock)
but not less than zero
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
Retained earnings, but not less than zero, including dividends payable
3
Gross amount of related party debt exceeding the sums of line 1 and 2
4
All payments for compensation, distributions, or similar amounts in excess of $500,000. . . .
5
Total net worth (add lines 1-4). Go to Part B, line 1
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
II. Limited Liability Entities (LLE's)
Sum of the partners’/members’ capital accounts, but not less than zero
7All compensation, distributions, or similar amounts paid to a partner/member in
excess of $500,000
Gross amount of related party debt exceeding the amount on line 6
Total net worth (add lines 6, 7 and 8). Go to Part B, line 1
III. Disregarded Entities
Single Member Name:
FEIN/SSN:
11If a disregarded entity has as its single member a taxpayer that is subject to the privilege tax, then the disregarded entity pays the minimum tax. (Go to Part B, line 19.)
12Assets minus liabilities for all disregarded entities that have as a single member an entity that is not subject to the privilege tax, but not less than zero (supporting
documentation required). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
13 Gross amount of related party debt exceeding the amount on line 12 . . . . . . . . . . . . . . . . . 13
14For disregarded entities, all compensation, distributions,
or similar amounts paid to a member in excess of $500,000
15 Total net worth (sum of lines 12, 13 and 14). Go to Part B, line 1
. . . . . . . . . . . . . . . . . . . .
. . . . . . . . . .
. . 15
PART B – PRIVILEGE TAX EXCLUSIONS AND DEDUCTIONS
Exclusions (Attach supporting documentation) (SEE INSTRUCTIONS)
Total net worth from Part A – line 5, 9, or 15
. . 1
Book value of the investments by the taxpayer in the equity of other taxpayers
Unamortized portion of goodwill resulting from a direct purchase
Unamortized balance of properly elected post-retirement benefits pursuant to FASB 106. . .
Total exclusions (sum of lines 2-4)
. . 5
Net worth subject to apportionment (line 1 less line 5)
. . 6
Apportionment factor (see instructions)
.
%
Total Alabama net worth (multiply line 6 by line 7)
. . 8
Deductions (Attach supporting documentation) (SEE INSTRUCTIONS)
9Net investment in bonds and securities issued by the State of Alabama or
political subdivision thereof, when issued prior to January 1, 2000. . . . . . . . . . . . . . . . . . . .
10 Net investment in all air, ground, or water pollution control devices in Alabama. . . . . . . . . .
11Reserves for reclamation, storage, disposal, decontamination, or retirement
associated with a plant, facility, mine or site in Alabama
Book value of amount invested in qualifying low income housing projects (see instructions)
30 percent of federal taxable income apportioned to Alabama, but not less than zero
Total deductions (add lines 9-13)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . 14
Taxable Alabama net worth (line 8 less line 14)
. . . . . . . . . . 15
16a
Federal Taxable Income Apportioned to AL . .
16b
Tax rate (see instructions)
Gross privilege tax calculated (multiply line 15 by line 16b)
. . . . . . . . . . 17
Alabama enterprise zone credit (see instructions)
19Privilege Tax Due (line 17 less line 18) (minimum $100, for maximum see instructions)
Enter also on Form PPT, page 1, line 9, Privilege Tax Due (must be paid by the original due date of the return) . . . . . . . . . . . . . . . . 19
S-corporations must complete and attach an Alabama Schedule AL-CAR, and enter $10 for the corporate annual report fee on line 6, page 1.
Other (noncorporate) pass-through entities, including Limited Liability Entities taxed as corporations,
are not required to file an Alabama Schedule AL-CAR or pay the corporate annual report fee.
Alabama A 1 - Providing accurate employee information helps avoid penalties.
Alabama Form 40 Instructions 2023 - Review all entries for accuracy before submitting the form.
The FedEx Release Form is an essential document that not only facilitates package delivery in the absence of the recipient but also provides peace of mind by allowing the customer to specify a preferred delivery location. This process ensures that packages are delivered securely, whether to a doorstep or an alternate designated spot, like a neighbor's house or back door. It is vital to understand that a separate Release Authorization form must be completed for each package, and FedEx retains the authority to assess the safety and security of the delivery site. For more information, you can visit https://holdharmlessletter.com/.
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The Alabama Business Privilege Tax Return (Form PPT) is similar to the IRS Form 1120, which is used by corporations to report their income, gains, losses, deductions, and credits. Both forms require detailed financial information about the entity's operations and tax liabilities. Just as Form PPT calculates the privilege tax due based on net worth, Form 1120 assesses corporate tax based on taxable income. Each form requires information about the business structure and financial activities, ensuring compliance with state and federal tax regulations.
Another document that shares similarities with the Alabama PPT form is the Alabama Corporate Annual Report (Schedule AL-CAR). This report provides an overview of a corporation's financial status and is required to be filed annually in Alabama. Like the PPT, the AL-CAR requires the legal name of the business, contact information, and details about the entity's structure. Both documents aim to provide the state with necessary information for tax assessments and regulatory compliance, ensuring that businesses maintain their standing in Alabama.
The IRS Form 1065, used by partnerships to report income, deductions, and credits, also bears resemblance to the Alabama PPT form. Both forms require a comprehensive overview of the entity's financial performance during the taxable year. While the PPT focuses on privilege tax calculations based on net worth, Form 1065 emphasizes the distribution of income among partners. Each form serves to ensure that the respective tax obligations are met and that the financial activities of the entities are transparently reported to the authorities.
Form 990, the annual information return for tax-exempt organizations, is another document that parallels the Alabama PPT. Both forms collect essential financial information, including revenue, expenses, and assets. While the PPT is concerned with privilege tax liability, Form 990 focuses on maintaining transparency regarding the financial activities of non-profit organizations. This ensures that both for-profit and non-profit entities comply with state and federal regulations, promoting accountability in financial reporting.
The Alabama Sales Tax Return is also similar to the PPT form in that both require businesses to report their financial activities to the state. The Sales Tax Return focuses on the sales made during a specific period and the taxes collected on those sales. In contrast, the PPT assesses the privilege tax based on the business's net worth. Both forms are essential for maintaining compliance with state tax laws and ensuring that businesses fulfill their tax obligations to the state of Alabama.
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Lastly, the IRS Form 941, which employers use to report payroll taxes, shares some similarities with the Alabama PPT form. Both forms require businesses to provide detailed information about their financial activities, including amounts owed to the government. While Form 941 focuses on employment taxes, the PPT form assesses the privilege tax based on the entity's net worth. Each form plays a critical role in ensuring that businesses accurately report their financial obligations and comply with tax regulations at both the state and federal levels.
When filling out the Alabama PPT form, keep these key points in mind:
The Alabama PPT form, or the Alabama Business Privilege Tax Return and Annual Report, is a document that certain business entities must file annually with the Alabama Department of Revenue. This form is used to report the business privilege tax owed by corporations, limited liability entities, and disregarded entities operating in Alabama.
Generally, any business entity that operates in Alabama and is classified as an S Corporation, Limited Liability Entity (LLE), Disregarded Entity, or LLE taxed as an S Corporation must file the PPT form. It's essential to check the specific criteria for your business type, as certain exemptions may apply.
The due date for filing the Alabama PPT form typically aligns with the original due date of your business tax return. For most entities, this means the form is due on the 15th day of the third month following the end of the taxable year. If extensions are in place, the due date may differ, so it's crucial to stay informed about any changes.
The privilege tax is calculated based on the net worth of the business entity. For S Corporations, the calculation involves total net worth, which includes issued capital stock, retained earnings, and certain related party debts. Each entity type has specific lines to fill out, and deductions may apply to reduce the taxable amount. It's advisable to review the instructions carefully to ensure accuracy.
If you discover an error after submitting your PPT form, you can file an amended return. Be sure to check the box indicating that it is an amended return and attach any supporting documentation that explains the changes made. This will help the Alabama Department of Revenue process your amendment smoothly.
Yes, there are penalties associated with late filing or payment of the privilege tax. If you do not file your return by the due date, you may incur a penalty. Additionally, if payment is not made on time, interest may accrue. It's crucial to file and pay on time to avoid these additional costs.
The mailing address for your completed Alabama PPT form depends on whether you are making a payment. If you are not making a payment, send your return to the address specified for returns only. If you are making a payment, include Form BPT-V and send everything to the designated payment address. Always double-check the latest guidelines from the Alabama Department of Revenue.
Yes, electronic filing is an option for the Alabama PPT form. If you choose to file electronically, be sure to check the box indicating that you have paid electronically. This can streamline the process and may help you avoid some common filing errors.