Pfizer Tax Ruling Clarifies Alabama Rule on Interest Deduction

Pfizer Inc.‘s win at the Alabama Tax Tribunal on the state’s add-back statute will help taxpayers navigate the state’s challenging rules, an attorney says.

“This case provides clear guidance for Alabama taxpayers to review their current and prior period filing positions,” Grant Thornton LLP partner Veronica Caputo said in an email Monday. Other states have implemented a variety of similar rules over the last few decades, but the rules are complex and numerous exceptions aren’t applied uniformly across the states, she said.

The tribunal ruled Thursday that the Alabama Department of Revenue improperly added $658 ...