Ala. Admin. Code r. 810-3-61-.09 - Estimated Tax Penalty To Individuals And Corporations Entitled To Claim Certain Credits Against The Amount Of Income Tax Due
(1) Definitions. The following terms have the
meanings ascribed to them for purposes of this rule:
(a) Estimated Tax - The Estimated Income Tax
payments required pursuant to §§
40-18-80 and
40-18-80.1, Code of
Ala. 1975.
(b)
Estimated Tax Penalty - The amounts to be added to the tax as a result of the
underpayment of Estimated Taxes as prescribed by
26 U.S.C. §§
6654 and
6655.
(c) Allowable Credits - The credits against
the Income Tax liability of an individual or corporate taxpayer attributable to
payments made by the taxpayer, when such payments are required to be reported
to the department by the taxpayer at the time of payment and verified to the
department by the recipient as required pursuant to §
16-6D-9.
(2) Procedure. No Estimated Tax Penalty shall
be added (or if added shall be reversed) to the Income Tax liability of an
individual or corporate income taxpayer for any quarter when the amount of
estimated tax payments made to the department by the quarterly due date as
required, plus the amount of allowable credits generated for the quarter equal
or exceed the total amount of estimated tax payments otherwise required to be
made for the quarter, if the following conditions are satisfied:
(a) The allowable credits do not exceed 50%
of the required estimated tax payments otherwise due;
(b) The allowable credits are attributable to
payments made no later than the due date of the required estimated tax
payments; and
(c) The Scholarship
Granting Organization has verified receipt of the payments as required pursuant
to §
16-6D-9.
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