Schedule NRA: Alabama S-Corporation Nonresident Agreement (Revision 2016-09)

Who files this form

Schedule NRA must be completed by each nonresident shareholder of the S corporation. 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 designate one.

If you authorize someone else to sign for you, 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 corporation’s annual Alabama Form 20S return.

How to file

1. Enter the shareholder and S corporation information at the top of Schedule NRA, including the applicable tax year.
2. If desired, enter an additional Alabama agent’s name and address in paragraph (2). This designation is optional.
3. Have the owner/shareholder or an authorized representative sign the agreement. Enter the signer’s title or status when signing as an attorney-in-fact, agent, or trustee. If signing under a power of attorney, state that fact.
4. Attach a copy to the Alabama Form 20S return each year the agreement is in effect.

The provided text does not give a mailing address or e-filing instructions.

Common mistakes

• Leaving out the shareholder’s legal residence. The form specifically reminds you to enter it.
• Using one agreement for jointly owned shares. Each owner must sign a separate agreement.
• Omitting a representative’s title or status. Include the proper title or status when an attorney-in-fact, agent, or trustee signs.
• 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 Alabama Form 20S every year the agreement is in effect.
• Trying to cancel after the permitted point. The agreement states that it may not 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?

You agree to timely file an Alabama nonresident income tax return, include your pro rata share of the entity’s income, loss, and deductions for each taxable year in which you are a shareholder, and pay any tax due. You also consent to Alabama’s personal jurisdiction in connection with your or the entity’s income tax returns and appoint agents to receive related Department documents.

How long does the agreement remain in effect?

Once filed, 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.

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, whom the agreement appoints for service of process.

What happens if Schedule NRA is not submitted on time?

When applicable, the entity must complete Form PTE-C on the shareholder’s behalf and pay the state an amount equal to the highest income tax rate applicable to individuals multiplied by the owner’s pro rata share of income allocated and apportioned to Alabama, as shown on the entity’s return.

Official sources

• https://www.revenue.alabama.gov/wp-content/uploads/2026/01/schnra_0916_25.pdf