HB301 Alabama 2011 Session

Summary

Primary Sponsor

Richard Lindsey

Democrat

Session

Regular Session 2011

Title

Income tax, taxpayer who is part of unitary business, Revenue Commissioner authorized to require additional information in alternative reporting format, Secs. 40-2A-17, 40-18-1 am'd.

Summary

HB301 would require Alabama taxpayers who are part of a unitary business to file a combined report to determine Alabama taxable income.

What This Bill Does

It defines unitary business and requires those taxpayers to use a combined report to determine Alabama income. The combined report must include all unitary members doing business in the United States or commercially domiciled in OECD-designated tax havens, and Alabama income would be calculated by apportioning the group's income to Alabama using a specified formula. The Alabama Department of Revenue Commissioner would issue regulations detailing how the combined report works and how the income is allocated. The bill also includes penalties related to improper contingent fees charged by tax planners or return preparers.

Who It Affects

• Unitary business taxpayers (such as corporations, partnerships, and other entities part of a multi-entity group) with activities in Alabama; they must prepare a combined report and allocate income to Alabama based on the combined group's data.
• Tax planning and tax return preparation professionals and their clients who use improper contingent fees; these activities could trigger penalties under the bill.

Key Provisions

• Defines 'unitary business' and related terms, establishing a broad interpretation for Alabama income tax purposes.
• Replaces separate entity reporting for unitary groups with a requirement to file a combined report to determine Alabama taxable income.
• Requires the combined report to include all unitary group members doing business in the U.S. or domiciled in OECD-designated tax havens, and to apportion income to Alabama using the group's overall data.
• Authorizes the Commissioner to promulgate regulations detailing the calculation method and enforcement of the combined report.
• Adds penalties for tax planning or return preparation services provided for improper contingent fees, treated as evidence of tax evasion with related enforcement provisions.
• Effective date: the act becomes law on the first day of the third month after passage and governor approval.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation