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Alabama Form 872: What You Should Know

Alabama Tax Commission. Tax Notes Vol. 2, Issue 15. The information in this section must be retained on file with the Tax Commission or otherwise be retained”. Alabama Tax Commission. Tax Notes Vol. 4, Issue 17. The information on Form 990 may be disclosed under any of the circumstances described in Form SSA-827,” the information must also be provided to the Tax Commission. The Tax Commission must be notified in writing when release of the information is permitted under any of the circumstances described. Alabama Tax Commission. The Tax Commission's website provides information on the following topics: • Individual (custodian, administrator, and spouse) withholding tax. • Form SSA-827 • Publication #41: Individual Income Tax Returns — Tax Notes • Form 990, (PDF). A publication with additional information on IRS publications is available on the IRS website, Internal Revenue Service. An Example We will begin with a real estate transaction, a mortgage. The deed, or title, lists the property as residential property for the purposes of Alabama sales tax. As it turns out, all we need to do to satisfy the requirement that the transfer be taxable as a residential transfer is to include a statement that it was a residential transfer in the transfer description. This is a real estate transaction. The deed lists the property, residential property for purposes of tax, as T-4B (Tax Identification Number). We also list the names and addresses of the real estate agent, the builder, and the mortgage broker. In the case of a transfer of real estate, for purposes of Alabama sales tax, the seller of the property is the taxpayer and the buyer in this case is the real estate broker and lender or other real estate investor. Notice that T-4B is used to indicate the tax status of the property. This does not, however, mean that the property is exempt from tax. Realists, at least with respect to sales tax, believe that if the real estate was not a residential property for the purposes of sales tax, then it is subject to Alabama income tax (taxation, §6-5-15).

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