Alabama tax amnesty is underway
- Jul 6, 2016 | Gail Cole
Last fall, Alabama lawmakers enacted the Alabama Tax Delinquency Act of 2016, creating a tax amnesty program for most (but not all) taxes administered by the Alabama Department of Revenue. The program runs June 30 through August 30, 2016.
Successful participants who file amnesty returns and remit payments within 90 days of approval will receive:
- A waiver of all penalties owed
- A waiver of one-half of the interest owed
- A limited look-back period of 3 years for all taxes eligible under the amnesty program
Eligible taxpayers
- Have not been contacted by the Alabama Department of Revenue for the past 5 years
- Are not currently involved in a criminal investigation or litigation
Ineligible taxpayers
- Have been contacted by the Alabama Department of Revenue at some point during the last 5 years
- Have an outstanding debt with the department (a bill, assessment, or civil collection action)
- Have been scheduled for an audit or are currently under investigation
- Entered into a Voluntary Disclosure agreement with the Department prior to June 30, 2016
Eligible taxes
Monthly sales tax returns for calendar years 2012, 2013 and 2014 are eligible for amnesty. Eligible sales and use taxes include:
- Casual sales and use tax
- Consumer use tax
- Contractor’s gross receipts tax
- Hydroelectric kilowatt hour tax
- Local government sales, use, rental and lodgings taxes
- Lodgings tax
- Mobile telecommunications service tax
- Pharmaceutical providers tax
- Sales tax
- Sellers use tax
- Utility gross receipts tax
- Utility license tax (2.2%)
- Utility service use tax
Individual and corporate income tax, business privilege tax, excise tax and withholding tax are also eligible for amnesty. Additional information is available at Alabama Tax Amnesty.
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