Alabama Estate Tax reporting and payment requirements are tied directly to federal estate tax requirements.

Reporting Requirements:  Alabama has no estate tax return.  An estate of an Alabama resident which is required to file a federal Form 706 must submit a complete copy of the federal estate tax return to the Alabama Department of Revenue.  An estate of a nonresident which has real or tangible personal property located in Alabama and which is required to file a federal Form 706 must also submit a complete copy of the return to the Alabama Department of Revenue.

                Mail copies of federal Form 706 to:
                Alabama Department of Revenue
                Estate Tax Section
                PO Box 327440
                Montgomery, AL  36132-7440

Tax Due:  Alabama collects the maximum credit allowed on the federal estate tax return as "State Death Taxes."  The amount of State Death Taxes is computed on line 13 of federal form 706.

Date Alabama Filing is Due:  The copy of the federal Form 706 and payment of Alabama Estate Tax is due nine (9) months after the date of death.  This date can be extended by timely filing a copy of the federal extension (Form 4768) by the due date of the return.  An estimated payment can be made with the extension.  If no estimated payment is made, interest will accrue on any tax due from the due date of the tax return until the time of payment.  The extension eliminates any penalties which may be assessed.

IRS Examinations:  If the IRS examines the tax return, copies of the examination report must be forwarded to the State of Alabama.  When the IRS completes its examination, a closing letter will be issued.  A copy of the closing letter must be forwarded to the Department of Revenue so that an Alabama closing letter can also be issued.

Additional Information:  For additional information concerning Alabama Estate Tax please call Ron Bedsole, at (334) 242-1034.