Alabama Enacts Tax Amnesty Program from June 30, 2016 through Aug. 30, 2016

The Amnesty Program will be available to eligible taxpayers for many sales, individual and corporate taxes, excluding motor fuel taxes.

The Amnesty Program will be available to eligible taxpayers for many sales, individual and corporate taxes, excluding motor fuel taxes. It will cover taxes due prior to Jan. 1, 2015 or taxes for taxable periods that began before Jan. 1, 2015. Ineligible taxpayers are those who have been contacted previously by the Alabama Department of Revenue or who are parties to any criminal investigation or criminal litigations in any court of the United States or the State of Alabama. A three-year look-back period will apply to tax types qualifying for the amnesty program. If amnesty application is approved, all penalties and half of the interest will be waived (in a typical voluntary disclosure arrangement, no interest would be waived).

Participation in the Amnesty Program shall be conditioned upon the agreement of the taxpayer that the right to protest or initiate an administrative or judicial proceeding is barred. The agreement shall only apply to the specific tax and the tax period for which amnesty is granted. No interest shall be paid on refunds for those amounts previously collected by the department from the taxpayer for a tax period for which amnesty is granted.

For taxable periods beginning on or after Jan. 1, 2016, and before Dec. 31, 2023, taxpayers that participate in the amnesty program and later fail to comply with any payment or filing provisions administered by the Department will be subject to the negligence penalty.

For more information about the Amnesty Program, see www.alabamataxamnesty.com. If you are interested in determining if the Alabama Tax Amnesty Program may be advised for your specific needs, please feel free to contact the HA&W SALT team for further assistance.

Any tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or under any state or local tax law or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. Please do not hesitate to contact us if you have any questions regarding the matter.

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