Under existing law, the Alabama Taxpayers' Bill of Rights and Uniform Revenue Procedures Act governs the administrative procedures of the Department of Revenue and local governments relating to taxpayers' rights and responsibilities, refunds, penalties, assessments, and appeals.
This bill would amend the act to conform in several respects to the federal Taxpayers' Bill of Rights, including broader "innocent spouse" type relief, and make technical corrections to remove ambiguities and conflicts. This bill would require certain state tax income returns to be filed as a result of IRS audit changes, consistent with the Multistate Tax Commission's model statute, and increase a taxpayer's penalties for fraud, negligence, and frivolous appeals or returns, consistent with federal law. This bill would increase the time period in which a taxpayer has to file an appeal of a preliminary or final assessment.
This bill would specifically state that it is the intent of this bill to adopt in large part the American Bar Association Model State Administrative Tax Tribunal Act.
This bill would abolish the Administrative Law Division of the Department of Revenue and provide for the creation and operation of a new, independent state agency, known as the Alabama Tax Appeals Commission, to hear appeals of tax and other matters administered by the Department of Revenue and appeals related to certain local taxes levied by or on behalf of self-administered counties or municipalities, unless the governing body elects out. The bill would transfer office furniture, equipment, computers, and other property from the Department of Revenue to the Tax Appeals Commission and also transfer from the Revenue Department Administrative Fund the necessary funds for the first year of operation of the Tax Appeals Commission.
This bill would also amend portions of Chapters 2A and 18 of Title 40, Code of Alabama 1975, for purposes of conformity and to make technical corrections.
Source: Alabama Legislature