- (1) For tax years beginning after December 31, 2004, the classification of a business trust for the purposes of determining the Alabama income tax due shall be in the same manner as the business trust is classified for federal income tax purposes.
- (2) Generally, the Internal Revenue Code classifies a business trust or a commercial trust as a corporation or a partnership, even if the organization is technically cast in the trust form – see U.S. Treasury Department Regulation §301.7701-4.
Author: Voncile Catledge, Joe Garrett, Ed Cutter, CPA
Statutory Authority: Code of Ala. 1975, §40-2A-7(a)(5).
History: New Rule: Filed December 27, 2006, effective January 31, 2007.