SB130 Alabama 2020 Session

Summary

Primary Sponsor

Clay Scofield

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

This bill prevents private auditing or collection firms from charging taxpayers certain expenses when they audit or collect taxes.

What This Bill Does

The bill adds a new section to Alabama law that stops private auditing or collecting firms from recovering specific costs from taxpayers. It lists the restricted costs as professional service fees (like attorney and accounting services), travel costs, salaries or personnel-related expenses, and other auditing or collecting-related costs. It goes into effect immediately after the bill is passed and approved by the Governor.

Who It Affects

• Taxpayers who are audited by or have taxes collected by private auditing or collecting firms: these taxpayers cannot be charged the listed costs.
• Private auditing or collecting firms: they are prohibited from recovering the listed costs from taxpayers.

Key Provisions

• Prohibits private auditing or collecting firms from recovering certain costs from taxpayers when auditing or collecting taxes.
• Specifies the non-recoverable costs as (1) professional service fees (including attorney and accounting fees), (2) travel costs, (3) salary or personnel-related expenses of the firm, and (4) auditing or collecting related costs, and defines 'private auditing or collecting firm' for this purpose.

AI-generated summary using openai/gpt-5-nano on Feb 23, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation