Instructions for Schedule CP-B Composite Payments / Electing Pass-Through Entity Credits - Alabama

This document contains official instructions for Schedule CP-B , Composite Payments/Electing Pass-Through Entity Credits - a form released and collected by the Alabama Department of Revenue.

FAQ

Q: What is Schedule CP-B?
A: Schedule CP-B is a form used in Alabama for reporting composite payments and electing pass-through entity credits.

Q: What are composite payments?
A: Composite payments are payments made by pass-through entities on behalf of their nonresident individual members to fulfill their state income tax obligations.

Q: What are pass-through entity credits?
A: Pass-through entity credits are credits that can be claimed by the pass-through entity on behalf of its owners or members.

Q: Who needs to file Schedule CP-B?
A: Pass-through entities that have made composite payments or have elected to claim pass-through entity credits on behalf of their owners or members in Alabama.

Q: How do I complete Schedule CP-B?
A: You will need to provide information about the pass-through entity, the nonresident individual members, and the composite payments or pass-through entity credits.

Q: When is the deadline to file Schedule CP-B?
A: The deadline to file Schedule CP-B in Alabama is the same as the deadline for filing the pass-through entity return, which is generally due on or before the 15th day of the fourth month following the close of the tax year.