Schedule NRA: Alabama S-Corporation Nonresident Agreement (Revision 2016-09)
Alabama · Alabama DOR · Used for tax years 2024
Alabama Schedule NRA is a nonresident S-corporation shareholder agreement to file Alabama nonresident income tax returns, report the shareholder’s pro rata share of the corporation’s income, loss and deductions, and pay any tax due. It also appoints agents for service of process
Who files this form
Each nonresident shareholder of an Alabama S corporation must complete Schedule NRA. If shares are jointly owned, each owner must sign a separate agreement.
A nonresident owner of a subchapter K entity cannot enter into this consent agreement.
What you'll need
Have the following information ready:
- The shareholder’s name, legal residence address, Social Security number or FEIN, tax year, and entity type.
- The S corporation’s name, address, FEIN, and tax year.
- The name and address of an additional Alabama agent for service of documents, if you choose to name one.
If you authorize someone else to sign on your behalf, a properly executed power of attorney must be filed with the Alabama Department of Revenue no later than the date the agreement is submitted.
Keep a copy of Schedule NRA for future reference and for attachment to the Alabama Form 20S return each year the agreement is in effect.
How to file
- Enter the shareholder’s information at the top of the form, including the legal residence address, taxpayer identification number, and tax year.
- Enter the S corporation’s FEIN, tax year, name, and address.
- If desired, enter an additional Alabama agent’s name and address in paragraph (2). This designation is optional.
- Have the owner or shareholder sign the agreement. If an attorney-in-fact, agent, or trustee signs, enter the signer’s proper title or status. State if the agreement is signed under a power of attorney.
- Attach a copy to the Alabama Form 20S return each year the agreement is in effect, and keep a copy for your records.
The text does not provide a mailing address or e-filing directions.
Common mistakes
- Leaving out the shareholder’s legal residence. The instructions specifically remind you to enter it.
- Using one agreement for jointly owned shares. Each owner must sign a separate agreement.
- Missing the signature or required title. The agreement must be signed, and a representative signing as an attorney-in-fact, agent, or trustee must enter the proper title or status.
- Submitting an authorized signature without timely filing the power of attorney. The power of attorney must be filed with the Department no later than the agreement’s submission date.
- Forgetting the annual attachment. A copy must be attached to Form 20S every year the agreement is in effect.
- Submitting Schedule NRA late. If it is not submitted timely when applicable, the entity must complete Form PTE-C for the shareholder and pay the amount described in the instructions.
- Trying to revoke the agreement after the allowed time. The agreement states that it cannot be revoked or cancelled after the due date, including extensions, of the entity’s Alabama return.
Questions people ask
What am I agreeing to by signing Schedule NRA?
You agree to timely file an Alabama nonresident income tax return, include your pro rata share of the S corporation’s income, loss, and deductions for any year you are a shareholder, and pay any tax due. You also appoint agents for service of Department documents and consent to Alabama’s personal jurisdiction in connection with your returns or the entity’s returns.
Do I have to name an additional Alabama agent?
No. The additional agent designation in paragraph (2) is optional. It is in addition to the entity’s registered agent and any agent or officer of the entity present in Alabama designated by the agreement.
Does Schedule NRA stay in effect after it is filed?
Yes. The instructions say it remains in effect until you notify the entity in writing that it has been revoked. The agreement also states that it cannot be revoked or cancelled after the due date, including extensions, of the entity’s Alabama return. A copy must be attached to Form 20S each year it is in effect.
What happens if the entity does not submit Schedule NRA on time?
When applicable, the entity must complete Form PTE-C on your behalf and pay the state an amount equal to the highest income tax rate applicable to individuals multiplied by your pro rata share of income allocated and apportioned to Alabama, as reflected in the entity’s return for that period.