1. (1) A financial institution or financial institution qualified corporate group will be granted an automatic extension to file its Alabama Financial Institution Excise Tax Return consistent with the extension allowed for the taxpayer’s corresponding Federal Income Tax or Federal Information Return. Extension of time granted pursuant to this section is not an extension of time for payment of the tax. The amount of tax due must be paid on or before the due date of the return without regard to the extension to file the return. Any tax due, not paid on or before the un-extended due date, will be subject to interest until paid at the rate provided in §40-1-44, Code of Ala. 1975, and all applicable penalties.

   1. (a) Payment of the tax must be made via the paper Financial Institution Excise Tax Payment Voucher or by Electronic Funds Transfer (EFT).

   2. (b) However, payment must be made via EFT if the payment exceeds $750. Please refer to Rules 810-13-1-.01 and 810-13-1-.03.

      (2)(a) An entity that fails to file the required return by the extended due date may not be granted an extension the following (ensuing) year but may be required to request the extension in writing.

   3. (b) If a written request is required, the request must be made to the Commissioner of Revenue or to his designee and must explain the reason for the request and the reason for failing to timely file the return in the previous year. The request also must state that the entity has no outstanding debts owed to the Department.
2. (3) Estimated Payments. Those financial institutions with liabilities in excess of estimated payments or credits should remit the balance due on or before the un-extended due date of the return. Members of an Alabama Qualified Corporate Group which have carryover payments from a prior year’s filing of a separate return shall treat such carryover as a payment of estimated taxes on the Alabama consolidated return for the following year. Interest and penalties are due on all taxes not paid on or before the un-extended due date.

Author: Lessie Hallum

Statutory Authority: Code of Ala. 1975, §§40-2A-7(a)(5), 40-16-3, 40-1-44. Alabama Administrative Rules 810-13-1-.01 and 810-13-1-.03.

History: New Rule: Published September 30, 2021; effective November 14, 2021.