Preparing Alabama returns when the state and federal groups are the same and there is not a federal eliminations client

Alerts and notices

Use this procedure to ensure the correct preparation of Alabama consolidated income tax returns if the members of the Alabama unitary business group are the same as those included in the federal consolidated group and there is not a federal eliminations client.

  1. Add Alabama to the parent client and the applicable subsidiary clients. Complete all data entry for these member clients. Each member's state return should be complete and correct before proceeding to the next step.

    Note: Apportionment data entry must be completed for each member client, even if the client is 100 percent in-state. The parent client and the applicable subsidiary clients must use the same apportionment method. Apportionment data entry is accessed through View > Apportionment.

  2. Add Alabama to the federal consolidated client.

    Note: When adding Alabama to a consolidated federal client, the state automatically defaults to being a consolidated return.

    If the state is added as a C Corporation to a federal consolidated group, the consolidated functionality does not take place. The amounts from each member are not consolidated, and the consolidated reports are not available.

  3. Review all Alabama consolidated client input screens and complete any necessary remaining data entry. For each category not marked in the File > Client Properties > Advanced Properties > Options dialog, enter the necessary data in the applicable input screen(s).

    Note: If a category is not marked, enter the data in the applicable input screens in the consolidated client. For a list of categories and related input screens, see Categories and related Alabama input screens.

    Any changes made to the File > Client Properties > Advanced Properties > Options dialog affect both the federal and state return.

  4. Click the Consolidated folder in the Alabama folders block. Complete any additional adjustments in Screen ALAffil.
  5. To file Form 20C-CRE, Election to File Consolidated Income Tax return, for a particular member of the consolidated group, mark the Filing Form 20C-CRE field in Screen ALAffil for that member.
  6. To make manual adjustments in other areas of the return, click the Group View button or press F7 in the input screen field you want to adjust, and then enter the adjustment amount in the Group View dialog.
  7. To change amounts entered in the Alabama parent or subsidiary clients, go back to the original source of data entry. For instance, if you made a mistake when you entered the apportionment of the first subsidiary, close the consolidated client and reopen the first subsidiary. Choose View > Apportionment for that client and correct the data. Close the subsidiary client and reopen the consolidated client. The correct amount is now a part of the consolidated group return.
  8. Print and review the Alabama consolidated tax return.