HB504 Summary

• Amends Alabama estimated income tax payment requirements for individuals and corporations to conform with federal system under 26 U.S.C. § 6654 (individuals) and § 6655 (corporations).

• Increases estimated tax payment threshold for individuals from 90% to $500 minimum, reducing penalty requirements for underpayment of estimated taxes.

• Decreases estimated tax payment threshold for corporations by requiring 100% of current year tax instead of prior year options, except large corporations may use prior year tax for first installment.

• Establishes four quarterly payment deadlines for corporations (April 15, June 15, September 15, December 15) with interest penalties calculated under federal underpayment rates.

• Repeals Sections 40-18-82, 40-18-83, 40-18-83.1, and 40-18-85; effective for tax years beginning after December 31, 2009.