SB237 Alabama 2018 Session

Summary

Primary Sponsor

Tim MelsonSenator

Republican

Session

Regular Session 2018

Title

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

Summary

The bill creates a temporary tax amnesty program for most Alabama taxes to collect delinquent taxes from before 2017, waiving interest and penalties during a 2018 window.

What This Bill Does

The Department of Revenue would establish a tax amnesty program for taxes it administers, excluding motor fuel, motor vehicle, and property taxes, with an official window from July 1 to September 30, 2018. Eligible taxes are those due before January 1, 2017 or for tax periods that began before that date, and eligible taxpayers must not have been contacted by the department in the past two years and must submit their amnesty applications during the window. Participants must sign a waiver giving up rights to protest for the specified tax and period, and must file all amnesty returns electronically; the program would waive interest and penalties for the approved periods, with refunds limited to certain post-amnesty adjustments. Look-back periods apply separately to each tax type, and if any tax was collected but not remitted, the look-back could be extended; proceeds are split with up to $250,000 set aside for amnesty expenses and the rest paid into the State Treasury.

Who It Affects

• Taxpayers who owe delinquent taxes administered by the Alabama Department of Revenue (excluding motor fuel, motor vehicle, and property taxes) for tax periods that began before 2017.
• Taxpayers who have not been contacted by the department in the past two years and who apply for amnesty during the eligible period, agreeing to waive rights to protest or pursue admin or judicial challenges for the covered tax and period.

Key Provisions

• Establishes the Alabama Tax Delinquency Amnesty Act of 2018 and requires the Department of Revenue to run an amnesty program for taxes it administers, excluding motor fuel, motor vehicle, and property taxes.
• Eligibility includes taxes due before January 1, 2017 or tax periods that began before that date; applications must be submitted during July 1–September 30, 2018 and must be electronic.
• Participants must sign a written waiver of rights to protest or appeal for the covered tax and period; amnesty refunds are restricted; the current year tax return must be included with the amnesty returns.
• The department will waive interest and penalties for granted periods; look-back periods apply separately to each tax type, and if any tax was collected but not remitted, the look-back period may be extended to include those periods.
• Ineligible taxpayers include those under criminal investigation for related taxes, those who submitted fraudulent applications, final assessments where appeal periods ended, prior voluntary disclosures before 2017-12-31, or those who received amnesty for the same tax type in 2016.
• If a deficiency is assessed after amnesty, penalties may be charged for the difference; a cost-of-collection penalty up to 20% may be imposed; some penalties may be waived if the deficiency was not due to negligence or fraud; amnesty does not invalidate other legal actions.
• Proceeds from taxes collected under the act are limited to up to $250,000 for amnesty-related expenses; remaining funds go to the State Treasury; the act becomes effective immediately upon approval, and the amnesty window is defined in law.

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