Tax Specialty

Alabama has extended the due date for certain pass-through entities to be taxed at the entity level for Alabama income tax purposes. The new due date, announced June 17, for the 2021 tax year, is August 15, 2022. The Alabama Department of Revenue extended the due date because a number of taxpayers were unable to file the necessary election by the original due date, although they may have made estimated tax payments or filed obligatory returns as if the election had been completed. The entity level tax election is accessible for the first time for the 2021 tax year, and the DOR is aiding taxpayers who planned on making an election but who for various reasons failed to comply. The Department has issued three criteria whereby taxpayers may complete the election through August 15, 2022.

  • Timely filed the required entity and member tax returns, as if the election had been properly made for the year;
  • Timely made an electing pass-through entity extension payment; or
  • Made an entity-level tax payment prior to the due date of the respective return. 1

Taxpayers should access My Alabama Taxes to complete the election process.

  • 1https://www.revenue.alabama.gov/aldor-announces-extension-of-time-for-filing-the-election-to-be-taxed-at-the-entity-level-for-certain-pass-through-entities

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