Alabama Sales Tax Penalty Waiver

In Alabama, you must register for an Alabama sales tax number before making taxable sales. You must also file your sales and use taxes on time. Failure to do so could result in a penalty. However, the Department of Revenue may waive these penalties if you can prove that there was reasonable cause for your noncompliance. An Alabama sales tax penalty waiver can be used for a variety of situations, including when you have been affected by a disaster. You should only work with a specialist who is experienced in Alabama state taxes. Otherwise, you may end up with a significant tax debt and unmanageable interest charges.

If you cannot pay your sales tax liability, the Department of Revenue will accept monthly payments. You must submit a monthly payment request and an affidavit with your request. The Department will review each request on a case-by-case basis.

How Does Alabama Sales Tax Penalty Waiver Work?

The Department of Revenue will waive penalty and interest if you can show that your failure to comply was due to “reasonable cause.” Reasonable causes include death, major illness, natural disasters, inability to obtain records, reliance on the incorrect advice of a tax advisor, and other unforeseen circumstances.

In addition, the Department of Revenue has suspended certain requirements resulting from Hurricane Ian. These include the requirement for businesses to maintain international fuel and vehicle registrations and suppliers to collect destination state tax from their customers. These requirements will resume 30 days after the state of emergency ends. In the meantime, check with your local tax administrator for more information.

Keeping track of and filing state sales tax returns can take time for businesses, especially those shipping to multiple states. Moreover, mistakes can lead to penalties and interest charges. As a result, many companies outsource their sales tax reporting and filing to an accounting firm or a company that specializes in sales tax automation