Important ADOR Advisory for Calendar-Year Business Privilege Taxpayers

The Alabama Department of Revenue reminds calendar-year Business Privilege Taxpayers to carefully check the Tax Period date information that is submitted on the new Alabama Form BPT-V (business privilege tax payment voucher). In processing the vouchers, the ADOR has determined that many calendar-year taxpayers are using the wrong date in the Tax Period field. 

The Tax Period field on the new Alabama Form BPT-V should be completed using the Determination Period End Date for the taxpayer.

The Determination Period End Date is found on page 1, line 2b, of the taxpayer’s 2008 Form CPT or Form PPT. For a calendar-year taxpayer filing a 2008 Form CPT or Form PPT, the Determination Period End Date should be December 31, 2007. See Alabama Business Privilege Tax TY 2008 Return and Schedules - Preparation Instructions on the Alabama Department of Revenue’s website (www.revenue.alabama.gov).

If you have determined that any of the 2008 Alabama Form BPT-V returns prepared by your firm used a Tax Period of December 31, 2008, rather than December 31, 2007 (the correct Determination Period End Date for a calendar-year taxpayer), please feel comfortable telling your clients the following:

1. The Alabama Department of Revenue will programmatically change any Business Privilege Tax payment recorded with a Tax Period of December 31, 2008, to properly reflect a Tax Period of December 31, 2007 (the Determination Period End Date for a calendar-year taxpayer).
2. The Alabama Department of Revenue will programmatically void any business privilege tax billings for the Determination Period End Date of December 31, 2007, if a business privilege tax payment is found to exist for the December 31, 2008, Determination Period End Date.
3. If the taxpayer can determine that the payment due was indeed made with the 2008 Alabama Form BPT-V, and the payment has cleared the taxpayer’s bank account, the taxpayer is not required to take any action at this time.
4. TY 2008 is the first year for the new Alabama Form BPT-V and the Alabama Department of Revenue will be lenient in resolving any penalties incurred by calendar-year taxpayers, resulting from the erroneous preparation of the form.