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Alabama tax amnesty is underway

  • Jul 6, 2016 | Gail Cole

 Alabama's tax amnesty program runs through August 30, 2016.

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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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.