HB46 Alabama 2017 Session

Summary

Primary Sponsor

Rod Scott

Democrat

Session

Regular Session 2017

Title

Tax preparers, required to provide federal identification number on Alabama income tax returns, buisness privilege tax return date made the same for state and federal returns, the maximum business privilege tax amount for a Real Estate Investment Trust (REIT); the name of the Taxpayer Advocate changed to the Taxpayer Assistance Officer, and allows for multiple Taxpayer Assistance Officers, Alabama Taxpayer Protection and Assistance Act, Secs. 40-14A-22, 40-14A-25 am'd.

Summary

HB46 tightens Alabama's tax rules by requiring PTINs on returns, aligning privilege tax due dates with federal rules, capping REIT and other taxes, and creating a Taxpayer Protection and Assistance framework with new Taxpayer Assistance Officers.

What This Bill Does

It requires every income tax return preparer to include their IRS Preparer Tax Identification Number (PTIN) on Alabama returns they prepare and signs as a paid preparer, with civil penalties if they don't. It changes when privilege tax returns are due, making them due at the same time as the corresponding federal tax return (with some exceptions for certain entities like financial institutions, which follow the Alabama excise tax schedule). It codifies maximum amounts for different privilege taxes, including a $15,000 general annual cap (and higher caps for financial institution groups, REITs up to $500,000 for a single taxpayer, and other special caps for certain entities). It renames the Taxpayer Advocate to Taxpayer Assistance Officer, allows more than one such officer, and establishes the Alabama Taxpayer Protection and Assistance Act to oversee tax preparation and protect consumers, including rules for information sharing with the IRS.

Who It Affects

• Income tax preparers and firms: must include PTINs on returns and face penalties for noncompliance.
• Taxpayers and Alabama residents: gain enforcement and consumer protection mechanisms through the Taxpayer Protection and Assistance Act and new officers.
• Financial institutions and related groups: subject to aligned due dates with the Alabama excise tax return and new minimum/maximum privilege tax rules.
• Real Estate Investment Trusts (REITs) and other large entities: have specified maximum privilege tax caps (REITs capped at $500,000 per taxpayer per year; other group caps apply).
• Not-for-profit property-holding organizations: subject to specific privilege tax caps.
• Alabama Department of Revenue and the IRS (and other states): coordination and information-sharing requirements to monitor and enforce PTIN-related provisions.

Key Provisions

• Requires PTIN on Alabama income tax returns prepared, with a civil penalty of $50 per offense (up to $25,000 per calendar year) for noncompliance, unless there is reasonable cause.
• Aligns the due dates for most privilege tax returns with the corresponding federal income tax return dates, with exceptions for certain entities such as financial institutions (aligned with Alabama excise tax return due date).
• Codifies maximum privilege tax amounts, including a general cap of $15,000 for most taxpayers, $3,000,000 for certain financial institution groups, and $500,000 for REITs, plus other entity-specific caps.
• Renames the Taxpayer Advocate to the Taxpayer Assistance Officer and allows multiple officers under the Alabama Taxpayer Protection and Assistance Act, which also establishes oversight, communications with the IRS, and enforcement mechanisms.
• Requires the Department of Revenue to develop PTIN oversight rules, share PTIN information with the IRS and other states, and implement related enforcement and compliance procedures, effective for returns due on or after January 1, 2018.

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