Hopefully you don't need to worry about this chapter because you're getting your Alabama sales tax filing and remittance done on time and submitted without incident. However, in the real world, mistakes happen. In this chapter, we'll talk about how to avoid costly penalties and fines if you've missed your assigned filing deadline.
What do I do if I missed my Alabama sales tax filing deadline?
The first thing to do is get your return filed. This is definitely one of those situations where things are "better late than never." As long as you don't submit your tax filing paperwork, or hold on to the tax dollars you've collected, you may be accruing fines and interest. It's always best to get your filing done and deal with any penalties and interest payments later.
What penalties and interest payments are imposed by the Alabama Department of Revenue?
Alabama taxpayers that fail to file sales tax returns on or before the assigned due date may be subject to a “Failure to timely file” penalty equal to 10% of the outstanding sales tax or $50, whichever is greater.
If I acquire a business, am I responsible for any outstanding sales tax debts, penalties, and interest?
Yes! If you are acquiring a business, it is strongly recommended that you contact the Alabama Department of Revenue and inquire about the current state of the potential acquisition. Once you've purchased the business, you will be held responsible for any and all outstanding Alabama sales and use tax liability.
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