Alabama Tax Delinquency Amnesty Program Act 2015-555

On September 14, 2015, the Alabama Tax Delinquency Amnesty Act of 2016 was signed into law, which includes:

  • Amnesty program terms and conditions for certain taxes due before, or for tax periods that began before, January 1, 2015
  • An amnesty application process for eligible taxpayers
  • A waiver of one-half of the interest and all of the penalties associated with the eligible taxes for approved tax amnesty program applicants
  • A three-year “look-back period” for all taxes eligible under the amnesty program
  • Amnesty application dates: 6/30/2016-08/30/2016
  • All amnesty returns and payments are due within 90 days of approval
  • Payments for taxes due are required to be certified funds, and no installment agreements are permitted
  • All amnesty related questions should be directed to: amnesty@revenue.alabama.gov
  • All amnesty returns and payments must be mailed to:
    Alabama Department of Revenue
    Alabama Tax Amnesty Program
    PO Box 327445
    Montgomery AL 36132-7445

ELIGIBLE TAXPAYERS

  • Taxpayers that are not a party to a criminal investigation or litigation in any court of the United States or Alabama pending as of September 14, 2015, for nonpayment, delinquency, or fraud in relation to any Alabama state taxes administered by the Department
  • Have not been contacted by the Department within the last 5 years

Contact includes any previous contact of any kind by the Department or an agent with regard to potential liability for the type of tax identified in the amnesty, including but not limited to, nexus questionnaire, an audit notice, registration with Secretary of State or Department, estimated returns, and non-compliance issued, delinquent return or payment notices/billings.
INELIGIBLE TAXPAYERS

  • 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

ADDITIONAL PROVISIONS

  • Amnesty program participants must agree to waive the right to protest or initiate an administrative or judicial proceeding related to the specific tax and the tax period for which the amnesty is granted
  • An overpayment that arises after the filing of the amnesty application may make participants eligible for a refund or credit
  • A taxpayer who files an amnesty application retains all administrative and judicial rights of appeal with respect to any additional tax assessed by the Department
  • A taxpayer who delivers or discloses any false or fraudulent application, document, return, or other statement to the Department in connection with the amnesty will be deemed ineligible, and be subject to the fraud penalty (§ 40-2A-11(d)), or penalty of $10,000, whichever is greater
  • A negligence penalty (§ 40-2A-11(c)), or a $100 penalty, whichever is greater, is applied to taxpayers that participate in the amnesty and later fail to comply with any payment or filing requirements of the particular tax type for which the amnesty was granted, beginning tax years January 1, 2016 through December 31, 2023
  • NOTE: Taxpayers are not eligible for the 3 year limited look-back period to the extent they collected taxes from a customer or employee. However, they are eligible for a penalty waiver when they remit these taxes during this program provided that the taxpayers 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.

EXAMPLES OF TAX PERIODS INCLUDED IN AMNESTY LOOK BACK PERIOD:

Individual and Corporate Income Tax (calendar year)
Tax years: 2012, 2013 and 2014

Corporate Income Tax (fiscal year)
Example: FY ending 6/30/2014 would use Form year 2013, qualifying as tax year 2013 for amnesty.

Business Privilege Tax
Tax years: 2012, 2013 & 2014; form years: 2013, 2014 & 2015

Sales Tax*
Monthly returns for calendar years 2012, 2013 & 2014

Excise Tax
Tax years: 2012, 2013 & 2014; form years 2013, 2014 & 2015

Withholding Tax*
Tax year ending December 2013 would be eligible for 2013 tax year for amnesty

*If previously collected, look back period (36 months) would go back to the point of collection