Form 65 - Partnership/limited Liability Company Return Of Income

Form 65 — 1999

Page 5

rental of real or tangible personal property used in the production of business

Partnerships as such are not subject to Alabama income tax. Each part-

income in Alabama and Everywhere. Annualize for short-period returns. Multiply

ner’s share of the adjusted income or (loss) of the partnership is taxable to

the annual rent expense by 8, and enter the result in the End of Year column. This

each partner or member (including corporations) of the partnership, whether

is the capitalized rental value.

or not distributed by the partnership.

A partnership/limited liability company is not allowed the deduction for

Line 14a. Add the amounts on lines 12 and 13 in the End of Year column for

Alabama.

net operating losses.

Enter names, addresses, and social security numbers or corporation Federal

Line 14b. Add the amounts on lines 12 and 13 in the End of Year column for

employer’s identification numbers on the lines provided on page 6, and extend in

Everywhere.

the proper column each member’s share of the adjusted income, expenses, and

Line 15. Divide the amount on line 14a by the amount on line 14b, and enter

deductions, whether distributed or not. This schedule should also show complete

the percentage on line 15. This is the ALABAMA PROPERTY FACTOR.

information with respect to all members who had any interest whatever during any

PAYROLL FACTOR

portion of the taxable year. In order that each member’s individual (or corporate)

Line 16a. Enter the amount of wages or other compensation paid to employees

return may be associated with this return, please recheck all social security and

for the production of business income in Alabama.

corporation Federal employer’s identification numbers for correctness before

mailing the partnership return.

Line 16b. Enter the amount of wages or other compensation paid to employees

for the production of business income everywhere. (Include officers’ salaries.)

In order that all partners (members) may properly comply with Alabama

Income Tax Code, the company shall advise them of their responsibility to

Line 16c. Divide the amount on line 16a by the amount on line 16b, and enter

file Alabama Income Tax returns reporting their share of income and deduc-

the percentage on line 16c. This is the ALABAMA PAYROLL FACTOR.

tions from the partnership.

SALES FACTOR

Individual Alabama residents should file using Form 40 and nonresidents

Line 17. Enter gross receipts from Alabama destination sales except sales to

using Form 40NR. Corporations should file using Form 20C or Form 20S. The

the U.S. government. This includes total gross receipts from sales of tangible prop-

necessary forms and instructions may be secured by writing to the Alabama

erty shipped to Alabama from locations both within and without Alabama.

Department of Revenue, P.O. Box 327470, Montgomery, AL 36132-7470.

Line 18. Enter the amount of sales shipped from an Alabama origin to any state

Alabama Enterprise Zone Act Credit: To stimulate business and industrial

or foreign country where this company is not taxable. Also enter total sales to the

growth in depressed areas of the State, Alabama offers certain tax credit incentives

U.S. government shipped from Alabama.

to corporations, partnerships, and proprietorships which locate or expand within a

Line 19. In the Alabama column enter the total of lines 17 and 18. In the Every-

designated enterprise zone. In order to qualify for these tax credits, a business

where column enter total sales for everywhere. If this amount does not correspond

must be located within a designated zone and meet certain other requirements

with line 1 of Federal Form 1120, attach an explanation and reconciliation.

of the Alabama Department of Economic and Community Affairs.

Line 20. Enter in the appropriate columns the gross receipts from the sale or

If a credit is earned by a partnership/limited liability company, the credit will be

disposition of assets used in the business. See Reg. 810-27-1-4-.18(c) for exclu-

distributed to each partner based on the percentage of ownership. The company

sion of amounts which would distort the factor.

should advise each partner of the amount of his/her income subject to this credit.

For further information regarding the “Alabama Enterprise Zone Act” and the

Line 21. Enter in the appropriate columns the gross business interest income.

necessary forms to claim this credit you should contact:

Line 22. Enter in the appropriate columns the gross business income from

Alabama Department of Economic and Community Affairs

rents.

401 Adams Avenue

Line 23. Enter in the appropriate columns the amounts of other business gross

P.O. Box 5690

receipts, and identify the nature of such receipts and their location on the federal

Montgomery, AL 36103-5690

return.

Telephone (334) 242-5100

Line 24a. Total the Alabama column for lines 19 through 23.

– or –

Line 24b. Total the Everywhere columns for lines 19 through 23.

Alabama Department of Revenue

P.O. Box 327470

Line 24c. Divide the amount on line 24a by the amount on line 24b, and enter

Montgomery, AL 36132-7470

the percentage on line 24c. This is the ALABAMA GROSS RECEIPTS FACTOR.

Telephone (334) 242-1000

Line 25. Add lines 15, 16c, and 24c. Divide by 3. This is the ALABAMA

COMPOSITE FILING FOR NON-RESIDENT INDIVIDUAL PARTNERS

APPORTIONMENT PERCENTAGE. Enter here and on line 4, Schedule D. (If any

factor is not utilized in the production of income, it shall be eliminated and the

For tax years beginning after December 31, 1996, the state of Alabama will

denominator reduced accordingly.)

allow composite filing for non-resident individual partners. Those non-resident indi-

vidual partners who elect to participate will have their Alabama source income

SCHEDULE D — Apportionment and Allocation of Income to Alabama

taxed at a five percent rate. The tax will be remitted by the partnership on a special

Line 1. Enter amount of income or (loss) from line 12, Schedule A.

form, to a special address, by the 15th day of the fourth month following the close

Line 2. Enter nonbusiness income or (loss) from column E, line 2, Schedule B.

of the business year. This is designed to eliminate the filing of individual income tax

returns by non-resident individuals who have only partnership income in Alabama.

Line 3. Subtract line 2 from line 1.

Non-resident partners who have other reportable income in Alabama should not

Line 4. Enter Apportionment Factor from line 25, Schedule C.

participate in composite filing. Also, when the partnership has losses which are to

Line 5. Multiply amount on line 3 by the percentage on line 4.

be carried forward, no composite return should be filed. No credit for losses can be

given to non-resident individuals unless an individual income tax return is filed to

Line 6. Enter nonbusiness income or (loss) allocated to Alabama from column

establish the loss. The loss can only be claimed on an individual income tax return.

F, line 2, Schedule B.

The partnership will include a list of all individual composite filing participants,

Line 7. Add lines 5 and 6. This is your Alabama Income.

with the Alabama Partnership Return (Form 65), including social security number

SCHEDULE E — Additional Information Required

and address. The Form 65 should be handled according to instructions. Mail the

All partnerships must complete Schedule E giving the information requested in

composite payment form and remittance to:

lines 1 through 7.

Alabama Department of Revenue

SCHEDULE K — Member’s Shares of Income, Expenses, and Deductions

Composite Payment

THIS SECTION MUST BE COMPLETED AND MUST CONTAIN ALL INFOR-

P.O. Box 327444

MATION REQUESTED.

Montgomery, AL 36132-7444

Form 65 - Partnership/limited Liability Company Return Of Income - 1999 Page 3

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