HB203 Alabama 2019 Session

Summary

Primary Sponsor

Ron Johnson

Republican

Session

Regular Session 2019

Title

Taxpayers Bill of Rights, revised to eliminate prohibition against entering into installment payment agreement with certain taxpayers, Secs. 40-2A-4, 40-2A-10 am'd.

Summary

HB 203 revises Alabama's Taxpayers' Bill of Rights to permit installment payment agreements for finally assessed taxes, create Taxpayer Advocates to help resolve issues and grant relief, and clarify the handling and confidentiality of tax records.

What This Bill Does

Allows the commissioner to enter into installment payment agreements for taxes that have been finally assessed and not appealed, with an initial term of up to 12 months and possible 12-month renewals. The commissioner can terminate or modify these agreements for reasons like inaccurate information, missed payments, changed financial condition, or jeopardy to collection. Creates one or more Taxpayer Advocates to handle inquiries, waive penalties for reasonable cause, issue taxpayer assistance orders (which can void erroneous assessments, grant refunds, or relieve interest), and review final orders with new evidence; advocates must report to the Legislature annually and play a role in examinations, including access to records and rights to representation and recording interviews, subject to confidentiality rules.

Who It Affects

• Taxpayers who owe state taxes and have final assessments; they gain access to installment payments and relief options through taxpayer assistance orders and the ability to request administrative review.
• The Department of Revenue and self-administered counties/municipalities that administer or collect taxes; they must appoint Taxpayer Advocates, issue assistance orders, manage installment agreements, and handle information exchanges under confidentiality rules.

Key Provisions

• Installment payments: commissioner may enter into written agreements allowing taxpayers to pay taxes in installments for taxes that are finally assessed and not appealed; initial term up to 12 months with possible 12-month renewals; applies to taxes administered or collected by the department; commissioner may terminate or modify for specified conditions; self-administered counties/municipalities have the same authority.
• Taxpayer Advocate: commissioner must appoint one or more advocates from department staff; advocates handle inquiries/complaints, waive penalties for reasonable cause, issue taxpayer assistance orders, and may review final Tax Tribunal orders if new evidence arises; orders must be dated, signed, and specify relief; advocates have broad access to records but are bound by confidentiality rules; annual reporting to the Legislature.
• Taxpayer Assistance Orders: orders can declare erroneous assessments or denials, grant relief such as refunds or voiding assessments, and may be modified or rescinded for good cause; not subject to confidentiality restrictions in the same way as other records; reviewers may use these orders to resolve issues, including those related to Tax Tribunal outcomes.
• Examination and records rights: taxpayers receive current Publication 1A outlining rights before examinations; taxpayers may be represented during examinations; audio recording rights for in-person interviews with advance notice; department may record if the taxpayer records or with advance notice; copies provided at cost reimbursement; applies to non-criminal cases.
• Confidentiality and information sharing: confidentiality for tax returns and information is maintained with specified exceptions for proper administration and certain disclosures to other government bodies; allows certain exchanges of information under rules; imposes penalties for improper disclosures and provides for compliance certificates; no private right of action is created.

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