United States

Alabama: Tax Delinquency Amnesty Act of 2016 Enacted

Sep 28, 2015
From KPMG TaxWatch

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During Alabama’s second special session, the legislature passed Senate Bill 20, which was signed into law on September 21, 2015. This bill requires the Department of Revenue to establish a tax amnesty program. The exact dates for the program are not specified, but it must be held for a two month period prior to August 31, 2016. During this time, amnesty will be available for all Department-administered taxes, with the exception of motor fuel taxes, and will apply to taxes due prior to January 1, 2015, or for taxable periods beginning before January 1, 2015. Notably, amnesty is only available to taxpayers that have not yet been contacted by the Department with respect to the delinquent taxes. As an incentive, the Department may waive all penalties and 50 percent of the interest associated with taxes paid under amnesty. However, taxpayers that participate in the amnesty program forfeit all appeal rights with respect to taxes for which amnesty is granted. At the expiration of the tax amnesty period, the Department may impose a cost of collection penalty not to exceed twenty percent of any additional deficiency assessed for any taxable period for which amnesty was taken. In addition, participants in the amnesty program shall, for an 8-year period, be subject to a negligence penalty for failure to comply with any payment or filing provision administered by the Department. Unlike most state amnesty programs, Alabama’s program includes a limited look-back period under which taxpayers coming forward will be required to file only three full years of delinquent tax returns. If a taxpayer has collected any tax without remitting such tax to the Department, no limited look-back will apply. Please stay tuned to TWIST for future details on Alabama’s amnesty program.

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The following information is not intended to be "written advice concerning one or more federal tax matters" subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230.

The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser.