Alabama Tax Delinquency Amnesty Program FAQ
Most taxes administered by the Alabama Department of Revenue, with the exception of motor fuel taxes, are eligible for the 2016 Amnesty Program. This includes but is not limited to: corporate and individual income, business privilege, excise, consumers use, sellers use, withholding, and sales. For a list of eligible and ineligible taxes click here.
Eligible taxpayers include those who:
- are not a party to a criminal investigation or litigation;
- have not been contacted by the Department within the last 5 years
- Taxpayers who have been contacted by the Department within the last 5 years.
- Taxpayers with an outstanding debt shown on the Department’s records in the form of a bill, assessment, or civil collection action (for example, garnishment).
- Any taxpayer who has been scheduled for audit or is currently under investigation.
- Taxpayers who have entered into a Voluntary Disclosure agreement with the Department before 6/30/16.
- Waiver of penalties
- Waiver of ½ of interest
- The Department will not seek criminal prosecution so long as there are no false representations made.
- Generally, a limited look-back period of 3 years for eligible taxes.
- The Department will not seek to collect tax, penalties or interest for tax periods prior to the look-back period.
- For taxes filed annually: The last 3 years of returns which are past due prior to January 1, 2015. Example: If you are a calendar year taxpayer and you are delinquent filing your individual tax returns, you will be required to file tax year 2012, 2013, and 2014 returns. Penalties and ½ of interest on these returns will be waived. The Revenue Department will not seek to collect tax, penalties or interest for tax periods prior to 2012.
- For taxes filed monthly or quarterly: The last 36 months of delinquent returns for taxable periods that began before January 1, 2015.
You are not eligible for the 3 year limited look-back period to the extent you collected taxes from a customer or employee. However, you are eligible for a penalty waiver when you remit these taxes during this program provided that you do not already have an account set up to remit these taxes. Example: If you collected sales tax on sales starting in May 2008, you must remit the sales tax you collected from tax periods beginning in May 2008.
For taxes due after January 1, 2015 and tax periods beginning on or after January 1, 2015, the Department will waive the penalty (waiver of interest is not permitted) if the delinquent return(s) is submitted with the amnesty return(s) along with full payment of tax and applicable interest..