The Alabama Tax Delinquency Amnesty Act of 2018 is effective as of March 6, 2018. Alabama taxpayers will need to act quickly, however, as the amnesty program will be held only for a period of time beginning July 1, 2018, and ending September 30, 2018. While property taxes, motor fuel taxes, and motor vehicle taxes are excluded from the amnesty program, all other taxes do qualify for the program if the taxes: (1) were due prior to January 1, 2017, and (2) were for taxable periods that began before January 1, 2017.
To enter the program, applicants must waive any rights to protest or initiate a proceeding, administrative or judicial, for the taxes that fall under the amnesty program. If approved, the amnesty cannot be applied outside the narrow scope of the agreement. The agreement applies only for the specific tax and the specific period.
How does the Alabama Tax Delinquency Amnesty Act of 2018 work? It contains a three-year look-back period, which is applied separately to each type of tax. Please note, if there is tax collected but not remitted, the look-back period extends back as far as point of collection. It is vital that a company evaluate its records and determine if tax was collected from customers and not remitted to the state before applying for this amnesty.