Alabama Enacts 2016 Tax Amnesty Program

Alabama has enacted legislation directing the state’s Department of Revenue to implement a tax amnesty program effective for at least two months in 2016 and taking place before August 31, 2016. The amnesty program will apply to all taxes administered by the department, except for motor fuel taxes and certain penalties. Taxes due prior to January 1, 2015 or taxes for taxable periods that began before January 1, 2015 are eligible for the program. 50% of interest and all penalties on the applicable tax will be waived under the program. A look-back period of three tax years will apply. If a taxpayer has collected any tax without remitting it, the look-back period includes all periods back to the point of collection. Participating taxpayers must agree that the right to protest or initiate an administrative or judicial proceeding is barred.(Act 2015-555 (S.B. 20c), Laws 2015, effective September 21, 2015)

UPDATE: Alabama has announced the dates of its 2016 tax amnesty program. The program will run from June 30, 2016 through August 30, 2016.

Posted on October 26, 2015