Alabama Department of Revenue announces Gross Income Tax Rule Becomes Effective for 2011!
The Alabama Department of Revenue announced "that amendments to three income tax regulations, collectively referred to as the “gross income regulation,” have become final.
The amendments, proposed and certified in accordance with the Alabama Administrative Procedure Act (APA) rules process, are effective for the 2011 tax year.
The rule change requires Alabama resident taxpayers to include in their Alabama gross income their distributable share of partnership, limited liability company, and s-corporation income derived from both in-state and out-of-state activities.
Prior to the administrative rule change, the existing gross income tax regulation allowed residents to apportion income from partnerships, limited liability companies, and s-corporations, and exclude non-Alabama source income from the tax base."