Alabama enacts amnesty bill

Legislation has been enacted directing the Alabama Department of Revenue to develop and implement a tax amnesty program to be effective for a period of at least two months in 2016 and occurring prior to August 31, 2016. The program must apply to all taxes administered by the Department, except for motor fuel taxes and certain penalties. Eligible taxes include those due prior to January 1, 2015 or taxes for taxable periods that began before January 1, 2015. Participation in the program is conditioned upon agreement by the taxpayer that the right to protest or initiate an administrative or judicial proceeding is barred. The program must waive one-half of the interest and all of the penalties associated with the tax periods under the amnesty. A look-back period of three full tax years, or 36 months, will apply. However, if a taxpayer has collected any tax without remitting it to the Department, the look-back period includes all periods back to the point of collection. Installment agreements will not be entered into for tax periods approved for amnesty. (Act 2015-555 (S.B. 20c), Laws 2015, approved and effective September 21, 2015.)

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