Alabama Add- Back Form

Add- Back Form
Schedule PAB
Schedule

PAB

*230007PB*

Add-Back Form

(Form 65, 20S)
TAXPAYER
NAME:

20_____

Alabama Department of Revenue
TAXPAYER
FEIN:

2/2023

ADOR

FOR THE
TAX PERIOD

, 20
through
, 20
Related member is defined to include a corporation, association, disregarded entity, or subchapter K entity (Alabama Code section 40-18-1(28) and (29)). Disregarded entities and subchapter K
entities are related members separate and apart from their owner. A column must be completed for each recipient related member.
Recipient related member who received interest/intangible income from the taxpayer:
1 a. Recipient related member FEIN.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
b. Recipient related member name. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2 List the intangible expense amounts paid to the recipient related member. . . . . . . . . . . . . . . .
3 List the interest expense amounts paid to the recipient related member. . . . . . . . . . . . . . . . . .
4 Total intangible/interest expenses paid (total lines 2 and 3).. . . . . . . . . . . . . . . . . . . . . . . . . . . .

Related Member 1
1a
1b
2
3
4

•
•
•
•
•

Related Member 2

11-1111111
BCA Corp
50,000,000
0
50,000,000

Related Member 3

Related Member 4

22-2222222
CAB Corp
0
10,000,000
10,000,000

•
•
•
•
•

33-333333
DEF Corp
0
20,000,000
20,000,000

•
•
•
•
•

• GA,PA,TX,FL,LA
•
10,000,000
0 %•
30 %
0 •
3,000,000
0 •
0
0 •
3,000,000

•
•
•
•
•
•

CA,MS,TN
19,500,000
15 %
2,925,000
500,000
3,425,000

•
•
•
•
•
•

•

0
20,000,000
0
30,000,000
2,000,000
1,000,000
250,000
0
0
0
3,425,000
7,058,820

•
•
•
•
•
•
•
•
•
•
•

4,000,000
0
0
0
0
0
0
0
0
0
4,000,000
1,411,764

•
•

1,208,823

•
•

1,411,764
550,000

•
•
•
•
•

44-444444
EFG Corp
0
4,000,000
4,000,000

To determine the exempt amount of intangible/interest expense, complete the applicable section(s) below.
5 Exemption related to §40-18-35(b)(1):
a. Jurisdiction(s) where recipient related member income is “subject to tax” and not allocated. 5a
b. Amount of Interest/Intangible subject to apportionment in jurisdiction(s).. . . . . . . . . . . . . . . 5b
c. Recipient related member’s total apportionment percentage in the above jurisdiction(s).
d. Interest/Intangible apportioned to jurisdictions (multiply Line 5b by Line 5c). . . . . . . . . . . .
e. Intangible/Interest income allocated to jurisdiction(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
f. Add Line 5d and Line 5e.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5c
5d
5e
5f

•
•
•
•
•
•

0

0

0
%

0
0
0

6 Exemption related to §40-18-35(b)(2) and §40-18-35(b)(4) – Amount of Line 4
expense not added back. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7 Exemption related to §40-18-35(b)(3) – Amount of Line 4 expense not added back. . . . . . .
8 Recipient related member receipts by category: a. Intangible receipts . . . . . . . . . . . . . . . . . .
b. lnterest receipts . . . . . . . . . . . . . . . . . . . .
9 a. •
b. •
c. •
d. •
10 a. If either Lines 8a or 8b are greater than Lines 9a, 9b, 9c or 9d, enter zero.. . . . . . . . . . . . .
b. If Lines 9a, 9b, 9c or 9d are greater than Lines 8a or 8b, enter amount from Line 7. . . . . .
11 Exempt Amount. Enter the greater of Lines 5f, 6, 10a or 10b. . . . . . . . . . . . . . . . . . . . . . . . . . .
12 Interest Expense Disallowed per IRC 163 (j) (allocated pro rata see instructions). . . . . . . .

6
7
8a
8b
9a
9b
9c
9d
10a
10b
11
12

•
•
•
•
•
•
•
•
•
•
•
•

0
50,000,000
0
50,000,000
0
60,000,000
250,000,000
1,000,000
0
50,000,000
50,000,000
0

•
•
•
•
•
•
•
•
•
•
•

0
0
0
0
0
0
0
0
0
0
3,000,000
3,529,416

•
•

0

•
•

1,058,825
800,000

•

72,000,000

•
•
•
•
•
•
•
•
•
•

12a Exempt amount of Disallowed IRC 163 (j) (Line 11 divided by Line 4, multiplied by
Line 12). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12a
13 Section 163 (j) Carryforward . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
14 Total Intangible/Interest expenses paid to all related members less total disallowed
IRC 163 (j) Interest (sum of all Line 4 for all related members minus all Line 12 for all
related members plus all Line 13 for all related members).. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
15 Total Exempt Amount. (Line 11 minus Line 12a for all related members from all pages.

Signature

Subtract Line 15 from Line 14 and enter the difference on Form 65, Schedule A, Line 1 or
Form 20S, Schedule A, Line 2.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

In order to qualify for the exemption presented in §40-18-35(b)(3) and §40-18-24(e), Line 10b must be greater than zero and an informed corporate officer must sign Schedule PAB, executed under penalty of perjury. This signature denotes that tax avoidance
was not a principal motivating factor with respect to the transaction(s) giving rise to the related member’s interest/intangible expenses and costs.

•

56,745,588

Title

Corporate Officer
CFO
4/15/24
Date

THIS FORM MUST BE ATTACHED TO FORM 65 or 20S.