Alabama provides 2016 amnesty program guidance
TAX ALERT |
On April 19, 2016, the Alabama Department of Revenue issued a notice announcing the launch of the state’s 2016 amnesty program, which was enacted in 2015 as the Alabama Tax Delinquency Amnesty Act.
Per the department’s notice, the 2016 amnesty will run from June 30 through Aug. 30, and will apply to all eligible taxes due prior to Jan. 1, 2015, or eligible taxes for taxable periods that began before Jan. 1, 2015.
The 2016 amnesty program list of eligible taxes includes most tax types, and the program will apply to sales and use tax, individual income tax, corporate income tax, financial institution excise tax, and business privilege tax. The list of ineligible taxes is short, but includes a number of fuel excise taxes. For a complete listing of eligible and ineligible taxes, see the department’s website.
To be eligible for amnesty, a taxpayer must not have not been contacted by the department regarding the eligible tax types included in the amnesty program within the last five years, and must not be a party to any criminal investigation or criminal litigation, regarding the tax, in any court of the United States or the state of Alabama.
If a taxpayer’s amnesty application is approved, the state will waive all penalties and half of the interest due and limit lookback to a three-year period.
Taxpayers with outstanding Alabama liabilities for eligible taxes for taxable periods that began before Jan. 1, 2015, should review the department’s tax amnesty program website and amnesty FAQ and consider participating in the program.