Alabama Administrative Code

This chapter sets forth the rules to be used by the Alabama Department of Revenue in the administration of Chapter 2A of Title 40, Code of Ala. 1975, passed during the 1992 regular legislative session. Chapter 2A of Title 40, Code of Ala. 1975, titled the "Alabama Taxpayers' Bill…

(1) A taxpayer who does not agree with a notice of preliminary assessment may file a written request for review with the Department in response to the preliminary assessment. This written request shall be referred to as a "petition for review" and should describe specific objecti…

(1) A taxpayer may request a transcript, copy of a transcript, or copy of an audio recording of any in-person interview between a taxpayer and any officer or employee of the department. (2) Reasonable Advance Notice of Recording. (a) Upon reasonable advance notice to the taxpayer…

(1) The Commissioner, or a delegate thereof, is authorized to enter into an installment payment agreement with a taxpayer if it is determined that the agreement will facilitate collection of a tax administered or collected by the department. An installment payment agreement can o…

(1) If the Department fails to substantially comply with Code of Ala. 1975, Section 40-2A-4, the Commissioner or his delegate is hereby empowered to abate any penalty otherwise arising from an examination or assessment upon written application for abatement of penalties by the ta…

(1) The Commissioner of Revenue may, at his or her discretion, issue Revenue Rulings as authorized by Section 40-2A-5, Code of Ala. 1975. Revenue Rulings apply only to the recipient of the request and have no precedential value to other taxpayers. (2) (a) Any request for a revenu…

(1) Taxpayers subject to a tax or determination of value must keep and maintain an accurate and complete set of permanent books of accounts and records, including inventories, that are sufficient to establish the correct amount of tax or value, deductions, credits, exemptions, an…

(1) PURPOSE (a) The purpose of this regulation is to define the requirements imposed on taxpayers for the maintenance and retention of books, records, and other sources of information under Section 40-2A-7(a)(5), Code of Ala. 1975. It is also the purpose of the regulation to addr…

(1) SCOPE. This regulation applies to the Department's authority to make payments to certain persons who are asked to provide information to the Department. Also, it specifies that witnesses, in general, will not be reimbursed for actual expenses incurred, but instead will be pai…

(1) Should the Department determine that the amount of tax reported on a return is incorrect or if no return is filed, the Department is authorized to calculate the correct tax based on the most accurate and complete information reasonably obtainable by the Department. After the …

(1) Any preliminary assessment must be entered within three years from the due date of the return, or three years from the date the return is filed with the Department, whichever is later, or if no return is required to be filed, within three years of the due date of the tax. Whe…

(1) DEFINITION. The following term has the meaning ascribed to it for purposes of this regulation: (a) Taxable Base. This means the gross income, gross proceeds from sales, gross receipts, capital employed or other amounts on which the tax paid with a return is computed. (2) A pr…

Only one inspection of a taxpayer's books and records relating to each type of tax administered by the Department shall be made for each taxable period, unless the Department is requested in writing by the taxpayer, or unless the Commissioner, after investigation, notifies the ta…

(1) SCOPE. This regulation relates to the authority of the Department to use varying methods of service when notifying a taxpayer that a preliminary or final assessment has been entered. (2) PURPOSE. The purpose of this regulation is to establish procedures regarding the methods …

(1) If a taxpayer disagrees with a preliminary assessment as entered by the Department, the taxpayer may file a written petition for review with the Department within thirty (30) days from the date of entry of the preliminary assessment. Accordingly, if the thirtieth (30th) day f…

(1) The Department may enter a final assessment for determinations of value, or for the nonpayment or underpayment of any tax administered by the Department, including any applicable interest and penalty, when: (a) a petition for review is not timely filed; (b) a petition for rev…

(1) SCOPE. The provisions contained herein shall govern appeals to the Alabama Tax Tribunal (hereinafter, the "Tax Tribunal") or to a Circuit Court. However, with the exception of the property of public utilities under Chapter 21 of Title 40, nothing herein shall be construed to …

(1) If the Department is required to make a refund of a county or municipal tax administered by the Department, the refund shall be made from the taxes currently collected and undistributed from the local government's account with the Department. If the money on hand is insuffici…

(1) Any taxpayer or consumer/purchaser may file a petition for refund of any taxes erroneously paid to the Department. Such petition should include the following: (a) a statement that the taxpayer and/or consumer\purchaser is requesting a refund; (b) the taxpayer's name and/or co…

(1) A petition for refund must be filed with the Department or an automatic refund pursuant to Section 40-29-71 Code of Ala. 1975, or a credit allowed, within three years from the date the return was filed, or two years from the date of payment of the tax, whichever is later, or,…

(1) If a petition for refund or credit relates to an overpayment of tax attributable to a net operating loss carryback, then in lieu of the three-year period described in Code of Ala. 1975, Section 40-2A-7(c)(2) a., the period shall be whichever of the following two periods expir…

(1) If a petition is granted, or the Department, the Alabama Tax Tribunal, or a court otherwise determines that a refund is due, the overpayment shall be refunded to the taxpayer by the state, county, municipality, etc. Interest at the rate established by Section 40-1-44 Code of …

(1) Denial of Licenses, Account Numbers, Permits, and Certificates (including Motor Vehicle Certificates of Title). (a) If upon a review and/or investigation of an application for any license, account number, permit, or certificate it is determined that the requested license, acc…

(1) Pursuant to § 8-1A-18, Code of Ala. 1975, of the Uniform Electronic Transactions Act (UETA), codified at § 8-1A-1, et seq., Code of Ala. 1975, any document submitted to the department that requires a signature may be signed with an electronic signature, subject to the followi…

(1) Definitions. The following terms have the meanings ascribed to them for purposes of this rule: (a) Lien. As defined in § 40-1-2 and § 40-29-20. (b) Final Assessment. As defined in § 40-2A-7. (2) Procedures. (a) Except as provided in paragraph (b), a lien arising under § 40-1-…

(1) SCOPE. This regulation establishes a procedure whereby third parties may be given information regarding the amount required to release the state tax lien. It further provides for the release of such information to purchasers and sellers of properties, and their agents, on whi…

(1) SCOPE. This regulation relates to the authority of the Department to release information necessary for sellers of a business or stock of goods to comply with Code of Ala. 1975, Sections 40-23-25, 40-23-82, and 40-12-224. (2) DEFINITIONS. The following terms have the meanings …

Notes Ala. Admin. Code r. 810-14-1-.27 Filed with LRS May 20, 1993. Certification filed with LRS July 20, 1993, effective August 24, 1993. Repealed by Alabama Administrative Monthly Volume XXXIX, Issue No. 04, January 29, 2021, eff. 3/15/2021. Author: George Mingledorff Statutory…

Notes Ala. Admin. Code r. 810-14-1-.28 Filed with LRS May 20, 1993. Certification filed with LRS July 20, 1993, effective August 24, 1993. Amended: Filed January 20, 2011; effective February 24, 2011. Repealed by Alabama Administrative Monthly Volume XXXIX, Issue No. 04, January …

(1) SCOPE. Safeguarding state tax return information is critical. All tax returns, forms, and supporting documents filed with the department, are confidential. Specific information filed with the department relating to a taxpayer is not public information. Return information use …

(1) SCOPE. (a) The provisions contained herein shall govern the application of the Failure to Timely Pay penalty to all taxes administered by the department, except for: 1. Penalties relating to registration and titling of motor vehicles; and 2. Penalties related to ad valorem ta…

(1) When a taxpayer fails to file any form or return required to be filed with the Department, including:(a) Refund Returns; or (b) Returns that indicate no tax is due; on or before the statutory due date (determined with regard to any extensions of time for filing), a failure to…

(1) If any part of an underpayment of any tax is due to negligence or disregard of rules and regulations, but without intent to defraud, a 5 percent penalty on the underpayment attributable to negligence or disregard shall be added. (a) The term "negligence" includes any failure …

(1) Any person who willfully filed a false or fraudulent return shall be assessed for the amount of tax as determined by the Department from the best available information with respect to such taxpayer. To the amount of tax due, the Department shall add a penalty in an amount equ…

(1) A "frivolous return" penalty of up to $250 may be imposed if any return: (a) does not contain information on which the substantial correctness of the self assessment may be judged, or (b) contains information that on its face indicates the self assessment is substantially inc…

(1) SCOPE. This regulation applies to the assessment and waiver of civil penalties and does not include cases of negligence or fraud. Additionally, this regulation does not apply to penalties abated under Regulation 810-14-1-.05 dealing with the failure of the Department to compl…

(1) Interest shall be added to any tax or other amount due the Department which is not paid by the due date. Interest on any delinquency shall be charged from the due date of the tax, except for the following: (a) interest on delinquent license taxes levied under Code of Ala. 197…

For "large corporate underpayment" as defined in I.R.C. Sec. 6621, the interest rate on underpayment shall be as prescribed by I.R.C. Sec. 6621(c)(1). Author: Michael Mason Notes Ala. Admin. Code r. 810-14-1-.34.01 New Rule: Filed January 12, 1999; effective February 16, 1999. St…

(1) The Department shall pay interest on any refund computed from the date of overpayment to the Department, except as follows: (a) Interest on a refund resulting from a net operating loss carryback shall be computed from the date the claim (amended return) giving rise to the ref…

(1) It is the policy of this State to prohibit any arrangement between the Department of Revenue, a county, a municipality, or any other taxing authority within the State and a private auditing firm for the examination of a taxpayer's books and records, if the firm's compensation…

Notes Ala. Admin. Code r. 810-15-1-.01 New Rule: Filed July 23, 2010; effective August 27, 2010. Repealed: Filed January 27, 2014; effective March 3, 2014. Author: Traci Floyd Statutory Authority: Code of Ala. 1975, §§ 40-2A-7(a)(5), 40-26B-72.

Notes Ala. Admin. Code r. 810-16-1-.01 New Rule: Filed December 20, 2010, effective January 24, 2011. Repealed: Filed January 27, 2014; effective March 3, 2014. Author: Angela Till Statutory Authority: Code of Ala. 1975, §§ 40-2A-7(a)(5), 41-7A-40 -41-7A-48.

Notes Ala. Admin. Code r. 810-16-1-.02 New Rule: Filed December 20, 2010, effective January 24, 2011. Repealed: Filed January 27, 2014; effective March 3, 2014. Authors: Kelly Graham, Ann F. Winborne, CPA Statutory Authority: Code of Ala. 1975, §§ 40-2A-7(a)(5), 40-7A-40-40-7A-48…

(1) Scope. This rule sets forth guidelines and procedures to be used by State Agencies that are required to file annual Economic Tax Incentive reports to the Legislature as required by Act 2016-389. (2) Definitions. For purposes of this rule, these terms shall be defined as follo…

(1) Purpose. This rule sets forth guidelines and procedures to be used by the department in the administration of the Sweet Home Alabama Tourism Investment Act, as codified in Article 22A of Chapter 18 of Title 40, Code of Ala.1975, which provides for a tax rebate to qualifying a…

(Repealed). Author: Tim Hussey Notes Ala. Admin. Code r. 810-2-1-.01 Filed July 19, 1993, withdrawn August 5, 1993. Filed August 13, 1993. Filed: Repealed December 21, 1993, effective January 25, 1994. Statutory Authority: Code of Ala. 1975, § § 40-2A-7(a) (5), 40-14-58,

(Repealed). Author: Tim Hussey Notes Ala. Admin. Code r. 810-2-1-.02 Filed July 19, 1993, withdrawn August 5, 1993. Filed August 13, 1993. Repealed: Filed December 21, 1993, effective January 25, 1994. Statutory Authority: Code of Ala. 1975, § § 40-2A-7(a) (5), 40-14-58.

Notes Ala. Admin. Code r. 810-2-1-.03 Repealed by Alabama Administrative Monthly Volume XXXVI, Issue No. 11, August 31, 2018, eff. 9/24/2018. Author: Statutory Authority:

Notes Ala. Admin. Code r. 810-2-1-.04 Repealed by Alabama Administrative Monthly Volume XXXVI, Issue No. 11, August 31, 2018, eff. 9/24/2018. Author: Statutory Authority:

(Repealed). Author: Tim Hussey Notes Ala. Admin. Code r. 810-2-1-.05 Filed July 19, 1993, withdrawn August 5, 1993. Filed August 13, 1993. Repealed: Filed December 21, 1993, effective January 25, 1994. Statutory Authority: Code of Ala. 1975, § § 40-2A-7(a) (5), 40-14-58. Amendmen…