HB158 Alabama 2020 Session

Summary

Primary Sponsor

Paul W. LeeRepresentative

Republican

Session

Regular Session 2020

Title

Taxation, private auditing or collecting firms prohibited from recovering certain expenses from taxpayers, Sec. 40-29-20.1 added.

Summary

HB 158 adds a new Alabama law section that bars private auditing or collecting firms from charging taxpayers certain expenses related to audits or collections.

What This Bill Does

The bill creates Section 40-29-20.1 and prohibits private auditing or collecting firms from recovering specific costs from taxpayers, including professional service fees (such as attorney and accountant fees), travel costs, salaries or personnel expenses, and auditing or related costs. It defines private auditing or collecting firms for the purposes of this rule. The act becomes effective immediately after the Governor signs it into law.

Who It Affects

• Taxpayers who are audited or pursued by private auditing or collecting firms: these taxpayers cannot be charged for listed costs.
• Private auditing or collecting firms: they are restricted from recovering certain expenses from taxpayers.

Key Provisions

• Adds Section 40-29-20.1 to prohibit recovering certain costs from taxpayers by private auditing or collecting firms.
• Prohibits recovering: (1) professional service fees (attorney and accountant fees), (2) travel costs, (3) salary or personnel-related expenses, (4) auditing or collecting related costs.
• Defines private auditing or collecting firm as any business described in Section 40-2A-3(17).
• Effective date: immediately after passage and approval by the Governor.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation