HB87 Alabama 2017 Session

Updated Feb 26, 2026

Notable

Summary

Primary Sponsor: Steve McMillan
Republican
Session: Regular Session 2017
Title: Revenue Dept., tax returns, tax refund fraud, provisions to combat identity theft, standardizing tax returns and license applications, authorized, penalties for checks or electronic funds not paid, Secs. 40-29-130, 40-30-7 added; Sec. 40-18-79, 40-29-70 am'd.
Summary: HB87 would give Alabama's Department of Revenue new tools to fight identity theft–related tax refund fraud, standardize filing and payment methods, credit reversed refunds back to taxpayers, and impose penalties for non-payable payments.
What This Bill Does
The bill gives the Department of Revenue authority to pursue options to reduce identity theft–related refund fraud, including partnerships with other state offices, federal agencies, and private partners. It requires standardizing the filing of tax returns, license applications, and payment methods wherever feasible, with rules to be issued and reviewed every five years. It allows a taxpayer’s account to be credited when a refund was erroneously reversed by the department, and it sets penalties for payments that are not honored, with certain exceptions.

Who It Affects
Taxpayers filing taxes and receiving refunds in Alabama, who could see refunds credited back if reversed in error and may face penalties for non-payable payments (with certain exceptions).
Banks, financial institutions, and partner agencies involved in processing refunds and fraud programs, who may participate in fraud-reduction efforts and be reimbursed for related costs.

Key Provisions
40-29-130: DoR may pursue options to reduce identity theft refund fraud; may incur costs; may partner with state, federal, and private sectors; may reimburse partners.
40-30-7: DoR shall standardize filing returns, license applications, and payment methods; may set administrative rules; rules subject to APA; reviewed every five years.
40-18-79 (amendment): Overpayments may be credited against taxes due; if refund reversed, a mechanism to credit the taxpayer's account; remaining balance paid to bank; costs reimbursed.
40-29-70 (amendment): Penalty for non-payable checks, money orders, or electronic funds; 10% of amount, or $10 if amount < $500; exceptions for good faith or settlement within 10 days.

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