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Alabama 65 Template

The Alabama 65 form is tailored for partnerships, limited liability companies (LLCs), and other similar entities to report their income to the Alabama Department of Revenue. Necessary for both calendar and fiscal year filings, it's integral for these organizations to accurately report their earnings, deductions, and tax credits. To ensure compliance and streamline the process of filling out your Alabama 65 form, click the button below.

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Table of Contents

The Alabama 65 form is a crucial document for partnerships, limited liability companies (LLCs), syndicates, pools, joint ventures, and similar entities operating within the state. Filing this form accurately and on time for either the calendar year 2010 or a fiscal year starting in 2010 is imperative to comply with the Alabama Department of Revenue requirements. It encompasses a comprehensive declaration of income, deductions, assets, and member details, alongside specific state adjustments and apportionment calculations necessary for accurate tax obligations determination. The form also demands detailed schedules regarding separately and nonseparately stated income, allocation and apportionment of income to Alabama, and additional information that can effect tax computations such as business operations in other states or countries, investments in pass-through entities, and transactions with owners. Additionally, it serves as a medium to apply for Alabama-specific credits like the Alabama Partnership Enterprise Zone Credit or the Capital Credit, further underlining its importance in the state’s tax filing process for eligible entities. The due diligence in completing and attaching requisite schedules, including the federal Form 1065 and Alabama Schedule K-1s for each owner, cannot be overstated, as these elements are integral to a comprehensive and compliant tax return.

Alabama 65 Example

FORM	10000165	ALABAMA
65
		DEPARTMENT OF REVENUE

• CY

• FY 2010

•SY

				Partnership/Limited Liability Company Return of Income

					ALSO TO BE FILED BY SYNDICATES, POOLS, JOINT VENTURES, ETC.
Important!						For Calendar Year 2010 or Fiscal Year																			DEPARTMENT USE ONLY
						For Calendar Year 2010 or Fiscal Year																			DEPARTMENT USE ONLY
				beginning • _________________________________, 2010, and ending • ____________________________, _________																				FN
	You Must Check
	Applicable Box:			FEDERAL BUSINESS CODE NUMBER						FEDERAL EMPLOYER IDENTIFICATION NUMBER
	Applicable Box:			•						•
				•						•

•	Amended Return			Name of Company																				Total Federal income as shown on
•	Amended Return																							Total Federal income as shown on
•	Initial Return			•																				Form 1065, line 8.
•	Initial Return																							•
																								•
•	Final Return			Number and Street																				Total Federal deductions as shown on
•	General Partnership																							Form 1065, line 21.
•	General Partnership			City or Town								State			9 Digit ZIP Code									•
				City or Town								State			9 Digit ZIP Code									•
•	Limited Partnership																							Total assets as shown on Form 1065.
																								Total assets as shown on Form 1065.
•	LLC/LLP			Check if the company operates				If above name or address is different from the one
•	LLC/LLP			in more than one state		•		shown on your 2009 return, check here											.	. . •
•				in more than one state		•		shown on your 2009 return, check here									. .	.	. . . .	. . •				•
•	Qualified Investment			Check if the company qualifies for the Alabama					Number of Members															CN
				Check if the company qualifies for the Alabama					Number of Members
	Partnership			Enterprise Zone Credit or the Capital Credit .			. . . . .	. . . . •	During The Tax Year								•

State in Which Company Was Formed					Nature of Business		Date Qualified in Alabama					Number of Nonresident Members
•					•		•					Included in Composite Filing . . .					•

				UNLESS A COPY OF FEDERAL FORM 1065 IS ATTACHED THIS RETURN IS INCOMPLETE
	SCHEDULE A				COMPUTATION OF SEPARATELY STATED AND NONSEPARATELY STATED INCOME
		1	Federal Ordinary Income or (Loss) from trade or business activities												. .	. . . . . . . . . . . . . . . . . . .			. . . . .	. . . . .	.	1			•
		2	Net short-term and long-term capital gains – income or (loss)						. .	. .	.	. . . .		2		•
		3	.Salaries and wages reduced for federal employment credits						. .	. .	.	. . . .		3		•(					)
		4	. . . . . . . .Net income or (loss) from rental real estate activities						. .	. .	.	. . . .		4		•
Reconciliation		5	. . . . . . . . . . . .Net income or (loss) from other rental activities						. .	. .	.	. . . .		5		•
Reconciliation		6	Net gain or (loss) under I.R.C. §1231 (other than casualty losses)											6		•
	to Alabama	6										. . . .		6		•
	to Alabama	7	Adjustments due to the Federal Economic Stimulus Act of 2008
	Basis (see	7
	Basis (see		(attach schedule)											7		•
	instructions)		(attach schedule)			. . . .	. . . . . . . . . .	. .	. .	.	. . . .			7		•
	instructions)	8	Other reconciliation items (attach schedule)											8		•
		8	Other reconciliation items (attach schedule)				. . . .	. . . . . . . . . .	. .	. .	.	. . . .		8		•
		9	.Net reconciling items (add lines 2 through 8)				. . . .	. . . . . . . . . .	. .	. .	.	. . . . .	.	. .	. .	. . . . . . . . . . . . . . . . . . .			. . . . .	. . . . .	.	9			•
		10	Net Alabama nonseparately stated income or (loss) (add line 1 and line 9)											. .	. .	. . . . . . . . . . . . . . . . . . .			. . . . .	. . . . .	.	10			•
		11	Contributions				. . . .	. . . . . . . . . .	. .	. .	.	. . . .		11		•(					)
		12	. . . . . . . . . . . . . . . . . . . . .Oil and gas depletion				. . . .	. . . . . . . . . .	. .	. .	.	. . . .		12		•(					)
		13	. . . . . .I.R.C. §179 expense deduction (complete Schedule K)						. .	. .	.	. . . .		13		•(					)
	Separately	14	. . . . . . . . . . . . . . . . . . . . . . . . . .Casualty losses				. . . .	. . . . . . . . . .	. .	. .	.	. . . .		14		•(					)
	Separately	15	Portfolio income or (loss) less expenses (complete Schedule K)											15		•
	Stated Items	15										. . . .		15		•
	Stated Items	16	Other separately stated items (attach schedule)											16		•
	(Related to	16	Other separately stated items (attach schedule)						. .	. .	.	. . . .		16		•
	Business	17	. . . . . . . .Net separately stated items (add line 11 through 16)						. .	. .	.	. . . . .	.	. .	. .	. . . . . . . . . . . . . . . . . . .			. . . . .	. . . . .	.	17			•
	Business	18	Total separately stated and nonseparately stated items (add line 10 and line 17)																			18			•
	Income)	18															. . . . .	. . . . .	.			18			•
	Income)	19	Alabama apportionment factor from Schedule D, line 4											19		•	%						Do not multiply line 18 by line 19
		19	Alabama apportionment factor from Schedule D, line 4						. .	. .	.	. . . .		19		•	%						Do not multiply line 18 by line 19
		20	Nonseparately Stated Income Allocated and Apportioned to Alabama from Schedule D, line 7																. . . . .	. . . . .	.	20			•

•I authorize a representative of the Department of Revenue to discuss my return and attachments with my preparer.

Please

Sign

Here

Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

		(	)
Signature of general partner	Date		Daytime Telephone No.	Social Security No.

		Preparer’s
		Signature
	Paid	Firm’s name (or yours, •
	Preparer’s	Firm’s name (or yours, •
	Preparer’s	if self-employed)
	Use Only	and address
	Use Only
		•

Date	Check if		Preparer’s Social Security No.
	Check if
•	self-employed		•
Telephone No.		E.I. No.

()

ZIP Code

Email Address

Mail to: Alabama Department of Revenue, Individual and Corporate Tax Division, P.O. Box 327441, Montgomery, AL 36132-7441	ADOR
on or before April 15, 2011. (Fiscal Year Returns must be filed on or before the 15th day of the fourth month following the close of the fiscal year.)

		10000265
	Form 65 — 2010	Page 2

SCHEDULE B		ALLOCATION OF NONBUSINESS INCOME, LOSS, AND EXPENSE

Identify by account name and amount all items of nonbusiness income, loss, and expense removed from apportionable income and those items which are directly allocable to Alabama. Adjustment(s) must also be made for any proration of expens- es under Alabama Income Tax Rule 810-27-1-4-.01, which states, “Any allowable

deduction that is applicable to both business and nonbusiness income of the tax- payer shall be prorated to each class of income in determining income subject to tax as provided…” (See instructions).

	DIRECTLY ALLOCABLE ITEMS		ALLOCABLE GROSS INCOME / LOSS						RELATED EXPENSE					NET OF RELATED EXPENSE

			Column A		Column B			Column C			Column D			Column E			Column F
			Everywhere		Alabama			Everywhere			Alabama			Everywhere			Alabama
														(Col. A less Col. C)			(Col. B less Col. D)

Nonseparately stated items

1a		•
1b		•
1c		•
1d Total (add lines 1a, 1b, and 1c)														•
Separately stated items

1e		•
1f		•
1g		•
1h Total (add lines 1e, 1f, and 1g)														•

SCHEDULE C			APPORTIONMENT FACTOR SCHEDULE – Do not complete if the entity operates exclusively in Alabama.

	TANGIBLE PROPERTY AT COST FOR						ALABAMA							EVERYWHERE
	PRODUCTION OF BUSINESS INCOME				BEGINNING OF YEAR				END OF YEAR			BEGINNING OF YEAR					END OF YEAR

1	Inventories				•
2	Land				•
3	Furniture and fixtures				•
4	Machinery and equipment				•
5	Buildings and leasehold improvements				•
6	IDB/IRB property (at cost)				•
7	Government property (at FMV)				•
8	•

9	Less Construction in progress (if included)				•
10	Totals				•
11	Average owned property (BOY + EOY ÷ 2)							•								•
12	Annual rental expense				•	x8 =								x8 =
13	. . . . . . . . . . . . . . . . . . . . . . . . . . . . .Total average property (add line 11 and line 12)						13a	•				. . . . . .	. . . .	. . . . . . . . . . . .	13b	•
14	. . . . . . . . . . . . . . . . . . . . . . . . . . . . .Alabama property factor — 13a ÷ 13b = line 14					.	. . . . . .	. . . . . .	. . . . . . . . . . .	. . . . . . .	. . . . .	. . . . . . .	. . . .	. . . . . . . . . . . .	14	•	%
	SALARIES, WAGES, COMMISSIONS AND OTHER COMPENSATION							15a	ALABAMA			15b	EVERYWHERE			15c
	RELATED TO THE PRODUCTION OF BUSINESS INCOME
15	Alabama payroll factor — 15a ÷ 15b = 15c					.	. . . . .	•									%
			SALES						ALABAMA				EVERYWHERE

16	Destination sales			. .	. . . . . . . . . . . . . . . . . . . . . .	. .	. . . .	•
17	. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Origin sales			. .	. . . . . . . . . . . . . . . . . . . . . .	. .	. . . .	•
18	. .Total gross receipts from sales		. . . . . . . . . . . . . . . . . . .	. .	. . . . . . . . . . . . . . . . . . . . . .	. .	. . . .	•
19	. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Dividends			. .	. . . . . . . . . . . . . . . . . . . . . .	. .	. . . .	•
20	. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Interest			. .	. . . . . . . . . . . . . . . . . . . . . .	. .	. . . .	•
21	. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Rents			. .	. . . . . . . . . . . . . . . . . . . . . .	. .	. . . .	•
22	. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Royalties			. .	. . . . . . . . . . . . . . . . . . . . . .	. .	. . . .	•
23	. . . . . . .Gross proceeds from capital and ordinary gains				. . . . . . . . . . . . . . . . . . . . . .	. .	. . . .	•

24Other •____________________________________ (Federal 1065, line •_____ ) •

25	Alabama sales factor — 25a ÷ 25b = line 25c	25a •	25b		25c	%
26	Sum of lines 14, 15c, and 25c ÷ 3 = ALABAMA APPORTIONMENT FACTOR (Enter here and on line 4, Schedule D, page 3)			26	•	%

ADOR

		10000365
	Form 65 — 2010	Page 3

SCHEDULE D		APPORTIONMENT AND ALLOCATION OF INCOME TO ALABAMA

1 Net Alabama nonseparately stated income or (loss) from line 10, Schedule A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2 Nonseparately stated (income) or loss treated as nonbusiness income (line 1d, Column E, Schedule B)

– please enter income as a negative amount and losses as a positive amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3 Apportionable income or (loss) – add line 1 and line 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4 Apportionment factor from line 26, Schedule C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5 Income or (loss) apportioned to Alabama (multiply amount on line 3 by the percentage on line 4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6 Nonseparately stated income or (loss) allocated to Alabama as nonbusiness income (Column F, line 1d, Schedule B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7 Nonseparately Stated Income Allocated and Apportioned to Alabama (add lines 5 and 6). Enter this amount on line 20,

Schedule A and line 1, Schedule K – Alabama Amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1•

2	•
3	•
4	•	%
5	•

6•

7•

	SCHEDULE E			OTHER INFORMATION
1	Indicate method of accounting	(a) •	cash	(b) •	accrual	(c) •	other
2	Check if the company is currently being audited by the IRS	•	What years are involved? __________________________________
3	Check if the IRS has completed any audits	•

4Enter this company’s Alabama Withholding Tax Account Number •

5 Briefly describe your operations •

•

6 Indicate if company has been(a) • dissolved(b) • sold(c) • incorporated If company has been dissolved, sold, or incorporated, complete the following:

Nature of change •

Name and address of new company, corporation, or owner(s) •

7Location of the partnership records •

8 Check if an Alabama business privilege tax return was filed for this entity •

If the privilege tax return was filed using a different FEIN, please provide the name and FEIN used to file the return.

FEIN: •	NAME: •

9Taxpayer’s email address:

	SCHEDULE K	DISTRIBUTIVE SHARE ITEMS
		Federal Amount	Apportionment		Alabama Amount	Enter on Alabama
		Federal Amount	Factor		Alabama Amount	Schedule K-1
			Factor			Schedule K-1
1	Alabama Nonseparately Stated Income (Schedule D, line 7)
1	Alabama Nonseparately Stated Income (Schedule D, line 7)			•		Part III, Line M
	Separately Stated Items:
2	. . . . . .Contributions	•				Part III, Line S
3	Oil and gas depletion
3	Oil and gas depletion	•				Part III, Line Z
4	I.R.C. §179 expense deduction
4	I.R.C. §179 expense deduction
	a. Amount allowed on 1065	•
	. . . . . . . . . . . . . . . . . . . . . .b. Adjustments required (see instructions)	•
	. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .c. Amount to be apportioned	•				Part III, Line O
5	. . .Casualty losses
5	. . .Casualty losses	•				Part III, Line W
6	. . .Portfolio income
6	. . .Portfolio income	•				Part III, Line Q
7	Interest expense related to portfolio income
7	Interest expense related to portfolio income	•				Part III, Line P
8	Other expenses related to portfolio income (attach schedule)
8		•				Part III, Line R
9	Other separately stated business items (attach explanation)
9	Other separately stated business items (attach explanation)	•				Part III, Line T
10	Small business health insurance premiums (attach explanation)
10				•		Part III, Line Y
11	. . . . . . . . . . .Separately stated nonbusiness items (attach schedule)	•		•		Part III, Line AA
12	. . . . . . . .Composite payment made on behalf of owner/shareholder			•		Part III, Line U
13	. . . . . . . . . . . . . . . . . . . . . . . . . . . .U.S. taxes paid (attach explanation)	•				Part III, Line V
14	Alabama exempt income (attach explanation)
14	Alabama exempt income (attach explanation)	•				Part III, Line AB
	Transactions with Owners:
	Transactions with Owners:		100%
15	Property distributions to owners	•	100%	•		Part III, Line X
15	Property distributions to owners	•		•		Part III, Line X
16	Guaranteed payments to partners
16	Guaranteed payments to partners	•		•		Part III, Line N

CHECK LIST

HAVE THE FOLLOWING FORMS BEEN ATTACHED TO THE FORM 65?

ALABAMA SCHEDULE K-1 (one for each owner)

ALABAMA SCHEDULE NRA (if applicable)

FEDERAL FORM 1065 (entire form as filed with the IRS)

ADOR

*10000465*

Form 65 — 2010

Page 4

Required Entity Information For Partnerships and LLCs

1. List general partners.

NAME OF GENERAL PARTNER

SSN / FEIN

ADDRESS

a.•

b.•

c.•

d.•

e.•

PERCENT OF OWNERSHIP

2. List other states in which the Partnership/LLC operates, if applicable.

3. At any time during the tax year, did the Partnership/LLC transact business in a foreign country?		Yes	No
If yes, complete the information below:

NAME OF COUNTRY	NATURE OF BUSINESS			TAXABLE INCOME
NAME OF COUNTRY	NATURE OF BUSINESS			REPORTED TO COUNTRY
				REPORTED TO COUNTRY

a. •

b. •

c. •

d. •

e. •

4. At any time during the tax year, did the Partnership/LLC invest in another Pass-Through entity?	Yes		No
If yes, complete the information below:

NAME OF ENTITY		FEIN		PERCENT OF
NAME OF ENTITY		FEIN		OWNERSHIP
				OWNERSHIP

a. •

b. •

c. •

d. •

e. •

5.Person to contact for information regarding this return:

Name:

Telephone Number: (

)

Email:

ADOR

▼ PDF File

Form Specs

Detailed Guide for Writing Alabama 65

After gathering all necessary documentation and information, completing the Alabama Form 65 is essential for partnerships, limited liability companies, and other specified entities. This document, crucial for reporting income details to the state, demands careful attention to ensure accuracy and compliance. Steps outlined below will guide you through filling out this form effectively.

Start by entering the tax year at the top of the form, indicating whether it's for a calendar year or a fiscal year starting and ending in 2010.
Check the appropriate box indicating if the return is an initial, amended, or final return.
Provide the company's name, federal business code number, and federal employer identification number.
Fill in the company's address including the number and street, city or town, state, and 9-digit ZIP code.
Include the total federal income, deductions, and assets as shown on Form 1065, lines 8, 21, and the balance sheet, respectively.
Indicate by checking the box if the company operates in more than one state or qualifies for certain Alabama tax credits.
List the number of members, both total and nonresident, and state other specific details such as nature of business and date qualified in Alabama.
Under Schedule A, compute separately and nonseparately stated income by filling lines 1 through 18 as instructed, beginning with federal ordinary income or loss and ending with total separately stated and nonseparately stated items.
Calculate the Alabama apportionment factor and nonseparately stated income allocated and apportioned to Alabama as per Schedule D instructions.
Authorize a representative to discuss the return with the Department of Revenue by signing at the designated section.
Complete Schedules B through E, providing detailed information on allocation and apportionment of income, other company details, and distributive share items respectively.
Ensure attachments such as Alabama Schedule K-1 for each owner, Alabama Schedule NRA if applicable, and the entire Federal Form 1065 are included with Form 65.
Review the checklist at the end of the form to confirm all necessary documents have been attached and sections appropriately filled.
Mail the completed Form 65 along with all required attachments to the Alabama Department of Revenue at the specified address before the due date.

Accuracy in completing the Form 65 ensures compliance with Alabama state requirements, accurately reflecting the business's financial activities within the tax period. It's crucial to provide clear and correct information across all sections to avoid potential issues with the state tax authorities.

Common Questions

What is the Alabama Form 65?

Alabama Form 65 is a tax document required by the Alabama Department of Revenue. It's used by partnerships, limited liability companies (LLCs), and similar entities, such as syndicates, pools, joint ventures, etc., to file their return of income. This form covers various financial aspects, including income, deductions, and assets as reported on the federal Form 1065, along with adjustments that are specific to Alabama.

Who needs to file Alabama Form 65?

Any partnership, limited liability company (LLC), or other similar entity such as syndicates, pools, or joint ventures operating in Alabama must file Form 65. This requirement applies whether or not the entity is formed in Alabama, as long as it conducts business within the state.

What information do I need to complete Form 65?

Completing Form 65 requires details from your federal tax return (Form 1065), including total federal income, deductions, and total assets. Additionally, you'll need information specific to your Alabama operations, such as the state in which your company was formed, nature of business, number of nonresident members, and any Alabama-specific credits or deductions.

When is Form 65 due?

For calendar year filers, Form 65 is due on April 15th of the following year. If you operate on a fiscal year basis, the form must be filed by the 15th day of the fourth month following the close of your fiscal year.

Can I file an amended return using Form 65?

Yes, businesses can file an amended return using Form 65. If changes need to be made to a previously filed Form 65, you must check the "Amended Return" box on the form and provide the corrected information.

What happens if I don't file Form 65?

Failure to file Form 65 can result in penalties and interest on any taxes due. The Alabama Department of Revenue can also pursue further actions to collect taxes owed, including filing liens against the business or its owners.

Where do I send completed Form 65?

Completed Form 65, along with any required attachments, should be mailed to the Alabama Department of Revenue, Individual and Corporate Tax Division, P.O. Box 327441, Montgomery, AL 36132-7441.

Common mistakes

When completing the Alabama Form 65, it's important to take care to avoid common mistakes that can lead to errors in your partnership or limited liability company's income tax return. These mistakes can range from simple oversights to misunderstandings of the requirements. Here are nine common mistakes to watch out for:

Not attaching a copy of the Federal Form 1065: This is a crucial requirement, as failing to attach this form renders the Alabama Form 65 incomplete. The Alabama Department of Revenue uses the Federal Form 1065 to verify income and deductions declared on the state return.
Incorrectly filling in the federal business code number: This code is used to classify the nature of the business. Using an incorrect code can lead to misclassification, impacting certain tax calculations or credits.
Omitting the Federal Employer Identification Number (FEIN): This number is essential for identifying the business. If it's left blank, processing the return can be delayed.
Failure to indicate the type of return: Marking whether the return is an initial, amended, or final return is crucial for the state's records. Each type of return has different implications for the business's tax responsibilities.
Not updating address information: If the business's address has changed since the last filing and this change is not indicated on the form, future communications from the Alabama Department of Revenue could be misdirected.
Overlooking the apportionment calculation section: For businesses operating in more than one state, correctly completing the apportionment calculation is critical. Errors here can lead to incorrect tax obligations being assessed.
Omitting information about members: The form requires details about the number of members, including nonresident members. Incomplete or incorrect information can affect the calculation of taxes due.
Forgetting to sign the form: An unsigned form is considered incomplete and will not be processed until properly signed. This can delay any refund or processing of the tax return.
Incorrect calculation of nonseparately stated income or loss: This is a common area of confusion and errors in this section can significantly impact the tax calculation.

Ensuring that all sections of the form are completed accurately and thoroughly can prevent delays and possible penalties. Double-checking entries against the Federal Form 1065 and consulting the instructions for any unclear sections can help ensure that the Form 65 is filled out correctly. Remember, the goal is to provide complete and accurate information to comply with state tax obligations and avoid any issues with the Alabama Department of Revenue.

Documents used along the form

When filing the Alabama Form 65, which is the Partnership/Limited Liability Company Return of Income, there are several other forms and documents that might often accompany this filing to ensure full compliance and accuracy in the reporting process. These forms are integral to providing a comprehensive overview of a business's financial and operational status to the Alabama Department of Revenue. Here’s a brief overview of each document.

Federal Form 1065: This form is the U.S. Return of Partnership Income. It's a required document that provides the IRS with details about the partnership’s financial activities. A copy of this federal return is attached to the Alabama Form 65 to fulfill state requirements.
Schedule K-1 (Form 1065): This schedule is used to report the share of income, deductions, and credits to each partner in the partnership. It helps partners understand their tax obligations.
Alabama Schedule K-1: Similar to the federal Schedule K-1, this state-specific version reports each partner’s share of income, deductions, and credits according to Alabama tax laws.
Alabama Schedule NRA: This form is necessary if the partnership has any nonresident members and elects to make a composite payment on their behalf. It outlines the income and tax details for nonresidents.
Schedule B (Allocation of Nonbusiness Income): Used to differentiate between business and nonbusiness income, ensuring income is allocated correctly for tax purposes.
Schedule D (Capital Gains and Losses): Although primarily used for federal taxes, a version of this document might be necessary for some partnerships to report Alabama-specific capital gains and losses.
Form PPT: This is the Alabama Business Privilege Tax Return and Annual Report, a mandatory filing for most entities operating in Alabama, detailing the privileges of doing business in the state.
Alabama Schedule E (Adjustments to Federal Taxable Income): Some partnerships might need to adjust their taxable income for certain items that are treated differently at the state level compared to the federal level.
Form 4562 (Depreciation and Amortization): This form details depreciation and amortization expenses, important for partnerships that need to report this information for Alabama tax purposes.
Alabama Form A-1: This is the Employer's Quarterly Return of Income Tax Withheld, required if the partnership withholds taxes from employees’ or partners' income.

Together, these documents play a crucial role in completing the Alabama Form 65 filing process. They ensure that both the partnership and its members meet their tax obligations comprehensively, providing detailed financial and operational information to the Alabama Department of Revenue and the Internal Revenue Service.

Similar forms

The Alabama 65 form, required by the Department of Revenue for Partnership/Limited Liability Company Return of Income, aligns closely with several federal documents in its structure and required information. A most directly comparable document is the IRS Form 1065, "U.S. Return of Partnership Income." This similarity arises because both forms capture essential data about the income, deductions, gains, losses, and other financial metrics of partnerships or limited liability companies. They both require detailed reporting of the company's financial operations over the fiscal year, including ordinary business income (or losses), rental income, and portfolio income, among others. Additionally, both forms necessitate disclosures on the number of members, nature of the business, and asset details. This comparison showcases the intertwined nature of federal and state tax reporting obligations for entities operating through partnership taxation frameworks.

Another document that the Alabama 65 form mirrors is the Schedule K-1 (Form 1065), "Partner's Share of Income, Deductions, Credits, etc." While Schedule K-1 is a component of Form 1065 used at the federal level, it directly correlates with how information is reported on the Alabama 65 form, especially in sections dealing with distributive share items. Both documents are crucial for delineating each partner's share of the partnership's financial results, including separately and non-separately stated items of income, deductions, and credits. The requirement for detailed and precise reporting on each partner's share of the partnership operations underlines the importance of transparency and accountability in the reporting process, ensuring that all taxable income and eligible deductions are accurately accounted for at both the state and federal levels.

Dos and Don'ts

When filling out the Alabama 65 form, a document required for partnerships and limited liability companies to report income, deductions, and more to the Alabama Department of Revenue, there are crucial do's and don'ts to observe. Adherence to these guidelines ensures compliance with the state's tax laws and helps avoid common pitfalls that could lead to errors or discrepancies in your filing.

Do ensure all information matches the federal Form 1065. The Alabama 65 form relies heavily on federal tax information, so consistency is key.
Do not overlook attaching a complete copy of the federal Form 1065. Without this, the Alabama 65 form is considered incomplete.
Do check the box that accurately reflects the filing status of the return, including initial, amended, or final return.
Do not forget to report the total number of members, distinguishing between resident and nonresident members, as this impacts the composite payment calculation.
Do indicate if the company qualifies for any specific Alabama credits, such as the Enterprise Zone Credit or Capital Credit, by checking the appropriate box.
Do not leave the apportionment factor and allocation schedules incomplete if the entity operates in multiple states or jurisdictions. Proper allocation and apportionment of income are crucial for accurate state tax liability calculation.
Do sign and date the return. An unsigned return is like an unsigned check – it holds no value and will not be processed.
Do not disregard the instructions for separately stated and nonseparately stated income on Schedule A. Understanding the difference is essential for correctly reporting income to Alabama.
Do keep a copy of the filed return and all supporting documents. If questions or audits arise, these documents will be invaluable.

Adhering to these guidelines when completing the Alabama 65 form will facilitate a smoother filing process, helping to ensure that all legal and procedural requirements are met. This meticulous approach can also reduce the likelihood of errors that might otherwise trigger audits or additional scrutiny from the Alabama Department of Revenue.

Misconceptions

Many people have misconceptions about the Alabama Form 65, which is also known as the Partnership/Limited Liability Company Return of Income. Addressing these misconceptions is crucial for ensuring that entities comply with state tax regulations accurately. Here are six common misunderstandings:

Form 65 is only for LLCs and Partnerships: While it's primarily used by these entities, it's also required for syndicates, pools, joint ventures, and similar types of organizations. The form's coverage is broader than what many initially think.
Form 65 is similar to the federal Form 1065: Although both forms pertain to partnerships and similar entities, Alabama Form 65 has specific requirements and deductions that are unique to Alabama. Relying solely on federal form instructions can result in inaccuracies in state returns.
The belief that if a company doesn't owe any tax, they don't need to file Form 65: Every entity that falls under the categories mentioned in the form must file it, regardless of their tax liability. This ensures that the Alabama Department of Revenue has all the necessary information.
Another misconception is that amendments cannot be made once Form 65 is filed: Corrections are allowed through filing an amended return. Entities must ensure their information is accurate and current, updating the state if errors in the original filing are discovered.
Some think that all sections of Form 65 must be filled out by all entities: The form includes various sections that may not apply to every entity. For example, Schedule E requests information not relevant to all filers. Understanding the specific instructions and requirements for each part of the form is crucial.
The final common misconception is that electronic filing isn't available for Form 65: Alabama Department of Revenue does offer electronic filing options, potentially making the submission process more efficient and environmentally friendly for entities.

Correcting these misconceptions ensures that partnerships, LLCs, and other entities can file their Alabama Form 65 with confidence, adhering to state requirements and avoiding potential penalties for non-compliance.

Key takeaways

Filling out and using the Alabama Form 65, which is designed for partnerships and limited liability companies (LLCs) to report their income, requires attention to detail and an understanding of specific requirements. Here are five key takeaways to help you navigate the process effectively:

Check the Appropriate Box: It's crucial to indicate whether the return is an initial, amended, or final return. This helps the Department of Revenue understand the context of your submission and ensures your return is processed correctly.
Inclusion of Federal Forms: The Alabama Form 65 is incomplete without attaching a copy of the Federal Form 1065. This form provides the detailed federal income and deductions, which are essential for accurately computing your Alabama income and taxes.
Separately and Nonseparately Stated Items: Understand the difference between separately and nonseparately stated items. You must correctly identify and report these items as they affect the partners' individual tax returns differently.
Apportionment and Allocation: If your company operates in more than one state, you need to pay special attention to the schedules for apportioning and allocating income. Properly applying the apportionment factor ensures that Alabama gets its fair share of taxes based on the business activity conducted within the state.
Deadlines and Signatures: Ensure that the form is signed and dated by a general partner or an authorized member of the LLC. Also, be aware of the filing deadline to avoid penalties—typically April 15 for calendar year filers or the 15th day of the fourth month following the close of the fiscal year for fiscal year filers.

By keeping these key points in mind, you can fill out and submit the Alabama Form 65 accurately and in compliance with state requirements. Remember to always double-check your information and consult with a tax professional if you have specific questions regarding your situation.

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Fact	Description
Form Designation	Alabama Form 65
Governing Body	Alabama Department of Revenue
Year	2010
Applicable Entities	Parnership/Limited Liability Company, and also includes syndicates, pools, joint ventures, etc.
Required Identification Numbers	Federal Business Code Number and Federal Employer Identification Number
Type of Returns	Initial, Amended, and Final Returns
Important Schedules	Schedule A (Income Computation), Schedule B (Allocation of Nonbusiness Income), Schedule C (Apportionment Factor), Schedule D (Apportionment and Allocation to Alabama), Schedule E (Other Information), and Schedule K (Distributive Share Items)
Filing Deadlines	April 15, 2011, for Calendar Year; or 15th day of the 4th month following the close of the fiscal year for Fiscal Year filers
Declaration and Signatures	Includes declarations by the preparers, signatures of a general partner, and other relevant authorizations for discussions with Alabama Department of Revenue
Governing Laws for Allocation and Apportionment	Alabama Income Tax Rule 810-27-1-4-.01 regarding proration of expenses between business and nonbusiness income
Important Features	Mentions specific IRS forms (like 1065) for reference, and indicates the need for allocations for nonbusiness income and deductions as per Alabama laws