HB137 Alabama 2018 Session

Summary

Primary Sponsor

Ken Johnson

Republican

Session

Regular Session 2018

Title

Taxation, Alabama Tax Delinquency Amnesty Act, Revenue Dept. require to establish a tax amnesty program

Summary

HB 137 creates a 2018 tax delinquency amnesty program for taxes administered by the Alabama Department of Revenue to forgive penalties and interest for eligible delinquencies in exchange for full payment and compliance.

What This Bill Does

The Department of Revenue must run a time-limited amnesty program from July 1, 2018, to September 30, 2018, for eligible taxes. Eligible taxes are those due before January 1, 2017 and for tax periods beginning before that date, and applicants must not have been contacted by the department in the prior two years. Eligible taxpayers must apply electronically, sign a waiver giving up rights to protest for the specific tax and period, and pay the full amount and file all applicable returns (including the current year) by November 15, 2018. During amnesty, interest and penalties for the granted periods are waived; refunds or credits are generally not available, except in limited cases such as certain IRS adjustments or net operating loss situations with notice; after amnesty, penalties may still apply for noncompliance and up to 20% collection costs may be added, with some waivers allowed. Proceeds beyond up to $250,000 for administration may be kept by the department for amnesty-related costs, with the rest going to state funds.

Who It Affects

• Eligible taxpayers who owe taxes administered by the Department of Revenue (excluding motor fuel, motor vehicle, and property taxes) and meet the look-back and non-contact criteria, who apply during the amnesty period and pay in full.
• Ineligible taxpayers, including those under criminal investigation for state taxes, those who filed fraudulent amnesty documents, those with final assessments after appeal periods, those who had a prior voluntary disclosure before 2017, or those who already received amnesty for a 2016 tax type.

Key Provisions

• Establishes the Alabama Tax Delinquency Amnesty Act of 2018 and requires the Department of Revenue to implement the tax amnesty program for eligible taxes.
• Excludes motor fuel taxes, motor vehicle taxes, and property taxes from amnesty.
• Defines the look-back period as the last three full tax years or 36 months of delinquent eligible returns, with separate look-back per tax type and extension if tax was collected but not remitted.
• Requires eligible taxpayers to apply during July 1, 2018 to September 30, 2018 (amnesty period) and submit electronically; payments and returns must be filed by November 15, 2018.
• Requires a written waiver of rights to protest for the specific tax and period; penalties and interest for amnesty periods are waived; current year penalties can still apply; refunds are limited.
• Imposes post-amnesty penalties or collection costs only on the difference between the amount shown on the amnesty application and the correct tax due, with certain waivers; fraud, false applications, or other violations carry higher penalties.
• Ineligible taxpayers include those under criminal investigation, those with fraudulent applications, those with final assessments, those who disclosed before 2017, or those granted amnesty for a 2016 tax type.
• Distributes proceeds: up to $250,000 can be used for amnesty-related advertising and expenses; remaining funds go to state treasury for the appropriate tax.
• Effective date: the act becomes law immediately upon approval by the Governor.

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