Alabama has enacted a tax amnesty program that will take place July 1, 2018 through September 30, 2018. The amnesty program will apply to all taxes administered by the Alabama Department of Revenue (DOR) except for motor fuel, motor vehicle, and property taxes. The program applies to taxes due prior to January 1, 2017 and taxes for taxable periods that began before January 1, 2017. Under the program, all interest and penalties associated with the tax periods for which amnesty is granted will be waived. However, penalties may be imposed for reasons such as failing to comply with the amnesty provisions, providing false or fraudulent information, and/or cost of collection penalties.A look-back period of three full tax years, or 36 months, applies separately to each tax type. If a taxpayer has collected any tax and not remitted it to the DOR, the look-back period will be extended to include all periods, back to the point of collection. Eligible taxpayers participating in the program must comply with the following requirements:
In order to participate in the program, the taxpayer must agree to waive any right to protest or initiate an administrative or judicial proceeding. The agreement only applies to the specific tax and the tax period for which amnesty is granted. Amnesty applications need to be submitted in an electronic manner as prescribed by the DOR.
Taxpayers are not eligible to participate in the amnesty program if any of the following conditions apply:
(Act 2018-153 (H.B. 137), Laws 2018, effective March 6, 2018)