Internet-Based Electronic Filing and Payment of Taxes to be Provided Through Electronic Return Originators

ALABAMA DEPARTMENT OF REVENUE

SALES, USE & BUSINESS TAX DIVISION

SALES & USE TAX RULE

810-1-6-.04. Electronic Filing and Payment of Taxes to be Provided Through the Paperless Filing and Payment System.

(1) Under the authority of Chapter 30 of Title 40, Code of Alabama 1975, the department shall sponsor a paperless filing and payment system for the purpose of providing taxpayers with the capability to electronically file and pay the taxes enumerated in Rule 810-1-6-.05. The system will provide two electronic filing and payment options: to file and/or pay via the Internet or using the toll-free interactive voice response/touchtone telephone system (IVR). The paperless filing and payment system is the only means available to taxpayers for electronically filing returns for the taxes enumerated in Rule 810-1-6-.05(1).

(2) The system shall have an e-file/e-pay application and an e-pay only application. The e-file/e-pay application shall provide the taxpayer with the capability of electronically filing a return and paying the tax due by electronic funds transfer using Automated Clearing House (ACH) debit method, except as noted in section (4). An ACH debit method taxpayer who is not required to pay the tax due by electronic funds transfer can utilize the system to electronically file a return and choose to make payment by check rather than authorizing an electronic payment. However, payment by check option is not available for electronically filed Income Tax Withholding and Non-State Administered Local Tax returns. A taxpayer with prior approval from the department to pay by ACH credit method can utilize the system to electronically file a return without authorizing electronic payment through the system. The e-pay only application shall provide the taxpayer with the capability of making an ACH debit method payment or additional payment for returns, outstanding invoices, assessments, and other taxes and fees due the department. The e-pay only application cannot be utilized to make a payment for tax types for which a taxpayer has approval from the department to pay by ACH credit method or to make a payment to a non-state administered locality.

(3) The submission of a tax return and/or the initiation of an ACH debit method payment via the paperless filing and payment system by the taxpayer or by the taxpayer’s authorized representative shall qualify as electronic signature of the person with the responsibility for filing the tax return. The taxpayer is responsible for the accuracy of the tax return information submitted to the department regardless of whether the return is filed by the taxpayer or by the authorized representative. A taxpayer filing returns or making payments for a business or corporate tax may utilize the View History feature of the paperless filing and payment system to review all of his returns and payments submitted through the system for a period of at least one year.

(4) International ACH Transactions.

a) Effective September 18, 2009, the National Automated Clearing House Association (NACHA) Operating Rules were amended to require all internationally funded payments sent via the ACH network to be identified as International ACH Transactions (IATs). All IAT entries must carry sufficient information to comply with the requirements of the U. S. Treasury Department’s Office of Foreign Assets Control (OFAC).

(b) In order to remain in compliance with the rules, the Department of Revenue may prohibit the initiation of an ACH debit method payment by a taxpayer through the paperless filing and payment system when the transaction is an International ACH Transaction as defined by NACHA guidelines. A taxpayer who is prohibited from initiating an ACH debit method payment through the system must make tax payments of $750 or more by ACH credit method. ACH credit payment method requires pre-registration and department approval. Tax payments made through ACH credit method must be initiated through the taxpayer’s financial institution separate from the filing of the return. (Authority: Sections 40-2A-7(a)(5), 40-30-1, 40-30-2, 40-30-3, 40-30-4, 40-30-5 and 40-30-6, Code of Alabama 1975) (Adopted through APA effective October 4, 2001, amended November 4, 2009)

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