Alabama State Business & Corporate Tax Extension
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Requirements for Filing a Business Tax Extension in the State of Alabama
Alabama Business Privilege Tax Extension
Every business including Mulit Member LLC's, Corporations, disregarded entities (i.e. single-member LLC's), REIT's and Business Trusts, doing business in or is registered/qualified to do business in Alabama, is required to file an Alabama Business Privilege Tax Return and Annual Report. Alabama will grant you an automatic extension to file Alabama Business Privilege Tax Return and Annual Repor, provided you have successfully filed a federal business tax extension. No paper or electronic Alabama business tax extension form is needed to be filed to obtain the automatic extension.
Although an automatic extension is granted by the State of Alabama, payment of the total tax due (including any corporate annual report fees) must be received on or before the original due date of the return. Payments made for a taxable year in which the automatic extension provision is utilized are referred to as automatic extension payments. Form BPT-V must accompany all business privilege tax payments unless payments are made electronically. Payments in excess of $750 must be made electronically. There are a number of electronic payment options available including utilizing the Alabama Interactive - Extension Payments website. If your automatic extension payment is less than $750, you can remit your extension payment by check or money order. Make check or money order payable to the Alabama Department of Revenue. The check or money order must be remitted along with a complete Form BPT-V (Alabama Business Privilege Tax Voucher).
Alabama Corporate Tax Extension
Any Corporation that does business or derives income from sources doing business in Alabama and is not specifically exempt under Alabama law, must file an Alabama corporate income tax return by the 15th day of the 4th month following the close of the tax year (April 15th in most years, for calendar year filers). Alabama grants an automatic extension of 6 months to file Alabama Form 20C, the Alabama Corporate Income Tax Return but the full amount of the tax due for a tax year is due, in full, by the original due date of the return. No paper or electronic extension form is needed to be filed to obtain the automatic extension but you must attach a copy of the federal extension (IRS Form 7004) to Form 20C when you file the return. If tax is due, Include Form BIT-V, Business Income Tax Payment Voucher, with any tax payment you make but if your payment exceeds $750, you must make your payment electronically.
Corporations doing business in Alabama that have made an S corporation election for federal income tax purposes, must file an Alabama S corporation income tax return which is due by the 15th day of the 3rd month following the close of the S corporation's tax year (March 15th in most years for calendar year filers). Alabama grants an automatic extension for taxpayers who file Form 7004 with the IRS. You must attach a copy of the federal extension to the S corporation tax return when it's filed. Use Form PTE-V, Pass-Through Entity Payment Voucher, with any tax payment unless paying electronically.
If the total of the estimated tax payments made for a tax year is less than the amount of tax due for the tax year, then an automatic extension payment in the amount of the tax deficiency is due by the original due date of the return for the tax year.
Alabama LLC Tax Extension / Alabama Partnership Tax Extension
Subchapter K entities (such as partnerships and multi-member LLCs) must file an Alabama partnership/limited liability company income tax return. Alabama grants an automatic 6-month extension to file Alabama Form 65, Partnership/Limited Liability Company Return of Income provided you have a valid federal extension. Remember to attach a copy of your IRS Form 7004 when you file Alabama Form 65 and that the extension only gives you additional time to file your return, not pay any taxes that may be due.
If your automatic extension payment is less than $750, you can remit your extension payment by check or money order. Make check or money order payable to: Alabama Department of Revenue. Write the corporation's federal employer identification number or the Alabama Affiliated Group’s Federal employer identification number (EIN) for 20C-C, the income tax form number or type of payment (automatic extension payment), and the tax year end on the check. The check or money order must be remitted along with a complete Form BIT-V (Alabama Business Income Tax Voucher). Payments over $750 must be made electronically at Alabama Interactive - Extension Payments.
For more information, visit the Alabama Department of Revenue website: revenue.alabama.gov
Alabama Business Tax information and assistance: (334) 242-1200
What Business Extension Forms Are Required by the State of Alabama ?
Form BPT-V (Business Privilege Tax Payment Voucher)
Form BIT-V (Business Income Tax Payment Voucher)
IMPORTANT: For automatic extension payments that are $750 or more, the payment must be made electronically.
Alabama Department of Revenue electronic payments site: https://www.revenue.alabama.gov/individual-corporate/pay-by-eft-ach/
To make an online tax extension payment, go to: https://www.alabamainteractive.org/business_privilege/
Mail Your Form BPT-V
Alabama Department of Revenue
Business Privilege Tax Section, PO Box 327320, Montgomery, AL 36132-7320
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FAQ
The rules and regulations for business tax extensions are different in every state. Some states will automatically grant you a state tax extension if you obtain a valid Federal extension — but other states require a separate state-specific application. For state-by-state information about filing tax extensions, please visit our State Tax Extensions center.
If your company maintains financial books/records, you can determine your current tax liability if you multiply your taxable income by the applicable tax rate. Many people simply use their numbers from last year’s tax return (as long as your tax situation is relatively similar). Remember to reduce your current tax balance by the amount of tax that was withheld (or paid via estimated tax payments), if any, during the year.
Yes. You can get more time to file for an estate or trust by submitting IRS Form 7004 for a business tax extension. An extension will give you 5 extra months to file Form 1041 (U.S. Income Tax Return for Estates and Trusts). During TaxExtension.com’s online application process, you will have the option of choosing “Estate” or “Trust” for your business entity type.
It depends on what type of LLC you have. For Federal income tax purposes, a multi-member LLC is classified as a “partnership” by default (unless it specifically elects to be treated as a corporation). A multi-member LLC classified as a partnership should request a business tax extension (IRS Form 7004) to get 5 extra months to file. A multi-member LLC classified as a corporation should also request a business tax extension, which provides 6 extra months to file a corporation return. On the other hand, a single-member LLC is classified as a “disregarded entity” by default (unless it specifically elects to be treated as a corporation). When a single-member LLC is treated as a disregarded entity, that means its activities are reported on the owner’s individual income tax return (Form 1040). So if you have a single-member LLC, you only need one (1) personal tax extension (IRS Form 4868) to cover yourself and your business, which gives you 6 extra months to file your return.
Independent contractors (Form 1099), sole proprietors (Form 1040 Schedule C), and single-member LLCs that report their business activities on their personal tax return (IRS Form 1040) should request a personal tax extension — not a business extension. For these taxpayers, a personal extension (IRS Form 4868) will cover both themselves and their business. If you have a different type of business, such as a partnership or S-corporation, you should file IRS Form 7004 for a business tax extension.
An IRS tax extension will give a business 5 or 6 extra months (depending on the type of business entity) to file its Federal income tax return. A business tax extension grants 5 more months to file: Form 1041, Form 1065, and Form 8804. A business tax extension grants 6 more months to file: Form 706-GS(D), Form 706-GS(T), Form 1041 (bankruptcy estate only), Form 1041-N, Form 1041-QFT, Form 1042, Form 1065-B, Form 1066, Form 1120, Form 1120-C, Form 1120-F, Form 1120-FSC, Form 1120-H, Form 1120-L, Form 1120-ND, Form 1120-ND (section 4951 taxes), Form 1120-PC, Form 1120-POL, Form 1120-REIT, Form 1120-RIC, Form 1120S, Form 1120-SF, Form 3520-A, Form 8612, Form 8613, Form 8725, Form 8831, Form 8876, Form 8924, and Form 8928. Our easy-to-use online application makes it easy for you to select the correct business entity type. If you are unsure which business tax return is required for your business, TaxExtension.com will help you figure it out.
Most partnerships and multi-member LLCs are required to file a separate income tax return, which means you will need a business extension to cover your business tax return, plus a personal extension to cover your personal tax return. On the other hand, a single-member LLC is classified as a “disregarded entity” (or “pass-through entity”), which means the business activities are reported on the owner’s personal tax return. In that case, you would only need a personal tax extension to cover both you and your business.
If you file a separate tax return for your business and you’re required to provide the business’ EIN (employer identification number) on the return, you should also provide the EIN on your tax extension request. Note that most businesses are required to obtain an EIN, which the IRS uses to identify a business entity. However, if you have a single-member LLC — which is considered a “pass-through entity” (or “disregarded entity”) — you should use your SSN (Social Security Number) instead of an EIN. Pass-through entities are reported as part of the owner’s personal tax return, which means you only need one (1) personal tax extension (IRS Form 4868) to cover both yourself and your business.
Corporations are granted a 6-month tax extension, which moves their filing deadline from March 15 to September 15. Trusts, certain estates, most partnerships, and some multi-member LLCs are granted a 5-month tax extension, which moves their filing deadline from April 15 to September 15.
In most cases, you will hear back from the IRS within 24 hours of submitting your business tax extension online. However, it’s important to note that IRS response times will be longer than normal on the last day of filing (March 15 and April 15). As soon as your business extension is approved by the IRS, you will receive an email from TaxExtension.com with the details of your extension, including your official IRS confirmation number.
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