Effective August 1, 2011, the Alabama Department of Revenue will restrict the electronic filing of certain corporate income tax returns (Forms 20C and 20C-C).   http://www.ador.state.al.us/prdocs/corp%20efile%20restriction.pdf

The following corporate returns are affected and will not be accepted by the Alabama Department of Revenue:

• Consolidated return Form AL 20C-C
• Corporate return Form AL 20-C which has either of the following boxes checked:
• "This company files as part of consolidated federal return”
• Filing Status box 5 - "Proforma Return  files as part of Alabama Affiliated Group"

A reject will be issued for returns filed on or after August 1, 2011.  Alabama Department of Revenue notes that there will be no penalties assessed for non-compliance with the e-file mandate for all taxpayers impacted by this change.

The Alabama Department of Revenue will otherwise continue to accept electronic filing of Form AL 20C returns that do not indicate federal consolidations.

The Alabama Department of Revenue anticipates the electronic filing problems will be resolved and they will accept 2011 tax year corporate returns commencing in 2012.