SB20 Alabama 2015 2nd Special Session

Summary

Primary Sponsor

Tim MelsonSenator

Republican

Session

Second Special Session 2015

Title

Amnesty program, created, enforcement by Revenue Department, Alabama Tax Delinquency Amnesty Act

Summary

Alabama creates a temporary tax amnesty program (excluding motor fuel taxes) to encourage payment of past-due taxes administered by the Department of Revenue.

What This Bill Does

The Department of Revenue must run a two-month amnesty in 2016 for taxes it administers (excluding motor fuel taxes). Eligible taxes are those due before 2015 or for periods that began before 2015; participants who apply during the amnesty and pay all amounts due will have penalties waived and about half of interest waived, with a three-year look-back (or 36 months) and extensions if taxes were collected but not remitted. The program requires waiving protest rights for the covered tax and period, prohibits installment plans for approved periods, and sets rules on refunds and post-amnesty penalties for new deficiencies.

Who It Affects

• Taxpayers with delinquent taxes owed to Alabama's Department of Revenue (excluding motor fuel taxes) who apply during the amnesty period and pay the full amount due.
• Taxpayers who are ineligible for amnesty, including those who have been contacted by the department, are under criminal investigation for related nonpayment or fraud, or who file false or fraudulent amnesty applications.
• Taxpayers in cases where taxes were previously collected but not remitted, since the look-back period may be extended to include those collections.

Key Provisions

• Enacts the Alabama Tax Delinquency Amnesty Act of 2016 and defines key terms (Commissioner, Look-back Period, Taxpayer, etc.).
• Requires the Department of Revenue to develop and run an amnesty program in 2016 for all taxes it administers except motor fuel taxes, with a public publicity plan and potential administration fees capped at 10% of total collections; advertising expenses are capped at $250,000 and remaining funds go to state funds.
• Amnesty window lasts at least two months in 2016 (before August 31) and applies to taxes due before 2015 or periods that began before 2015; participation requires payment in full and a waiver of protest rights for the covered period.
• Look-back period is the last three full tax years (36 months); if taxes were collected but not remitted, the look-back extends to those periods; penalties are waived and interest is reduced by half if amnesty is approved, with no installment plans for periods granted amnesty.
• Ineligible taxpayers include those already contacted by the department or under criminal investigation for related offenses; fraud or false information in an amnesty application can trigger penalties and disqualification.
• Post-amnesty penalties can apply if new deficiencies arise, up to 20% of the deficiency, with potential waivers for certain circumstances; refunds are generally not paid for amnesty amounts except in limited cases (e.g., adjustments or net operating losses) and only after notice requirements.
• Effective date is immediate upon the governor's approval.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation