Sales Tax Holiday—Severe Weather Preparedness July 6-8, 2012…Beginning at 12:01 a.m. (CST) on Friday July 6, 2012, and ending at twelve midnight on Sunday July 8, 2012, Alabama will hold its first annual sales tax holiday giving shoppers the opportunity to purchase certain severe-weather preparedness supplies free of state sales or use tax. Click here for more information about this year's holiday.

 

Mark your calendars…New Business Workshops scheduled:  Jasper, May 8; Mobile, May8; Eufaula, May 14; Demopolis, May 15; Huntsville, May 15; and Muscle Shoals, May 17.  Click here for more information about these and upcoming workshops in your area. 

 

ADOR rule hearings scheduled May 9, 10, and 16…To view a listing of the proposed rule actions, click here for more information.

 

Remember to update your disability access parking credentials…If you currently hold five-year disability access parking placards and/or disability access license plates, don't forget to renew your placards and license plates during your designated renewal month in 2012.

 

Alabama Streamlined Sales and Use Tax Commission Issues Report…On Feb. 13, 2012, the Alabama Streamlined Sales and Use Tax Commission issued its report as required by Act 2011-563.  Download a copy of the report here: Alabama Streamlined Sales and Use Tax Commission Report.

 

Penalty Relief Available to Certain Taxpayers…The Alabama Department of Revenue announced that it would waive penalties for taxpayers whose 2011 estimated tax payments were insufficient due to the recent "gross income regulation" rule change.

Looking for the "Certificate of Compliance" for your Secretary of State filing?  Beginning Jan. 1, 2011, a foreign company withdrawing its registration to do business in Alabama must submit to the Alabama Secretary of State's Office an original Certificate of Compliance from the Alabama Department of Revenue (ADOR).  To download a Certificate of Compliance application, click on FORMS at www.revenue.alabama.gov or call the ADOR at (334) 242-1189 to request an application.  To learn more about the requirements associated with a foreign company's closing or withdrawal from business activity, visit the Alabama Secretary of State's Office at http://www.sos.state.al.us/downloads/corpForms.aspx.   

E-mail Scams…If you receive an e-mail from someone claiming to represent the ADOR and seeking personal or financial information do not reply.  The Alabama Department of Revenue does not initiate taxpayer communications through e-mail. 

Corporate E-file Restriction Removed… Last year, the ADOR was forced to restrict the electronic filing of certain corporate income tax returns due to processing errors associated with federal consolidated filers.  Alabama business taxpayers can now file their state corporate income tax returns and tax schedules electronically.

 

It's that Time Again…The 2012 tax filing season officially kicked off Jan. 17, 2012. Taxpayers who meet certain eligibility requirements may be able to e-file their state and federal returns free-of-charge. For more information concerning eligibility requirements and a listing of online service providers offering free filing programs, visit the department's Web site at www.revenue.alabama.gov  or the I.R.S. site at www.irs.gov.  View each company's offerings to determine which one best suits your filing situation.

 

What's New for the 2012 Filing Season?  Be sure to review ADOR's tax season updates.

 

Tax Guidance:  Gross Income Tax Rule Becomes Effective…The rule change, effective for the 2011 tax year, requires Alabama resident taxpayers to include in their Alabama gross income their distributable share of partnership, limited liability company, and s-corporation income derived from both in-state and out-of-state activities 2011 tax year. 

Lower E-filing Requirement for Employers/Filing Agents for Tax Year 2011…Employers and filing agents who issue 25 or more Form W-2s (and/or Form 1099s with Alabama tax withheld) must electronically file this information and the Form A-3 through ADOR's Paperless Filing and Payment System.   

Alabama DMV info at your fingertips…Check out the Motor Vehicle Division's free iPhone App at Alabama DMV.

Watch those exemptions!!!  Form A-4, Employee's Withholding Exemption Certificate…Every employee working in the state of Alabama is required to have on file with his or her employer a signed Form A-4.  The number of exemptions claimed must NOT exceed the number to which the employee is entitled.  Overstating the number of exemptions allowed on the Form A-4 can result in a $500 penalty.  

Gulf Oil Spill Tax Information…State and federal tax guidance is available to Alabama residents and businesses affected by the recent oil spill in the Gulf of Mexico. Because every person can have unique financial circumstances, the Alabama Department of Revenue encourages taxpayers to review their tax situation or talk with their tax preparers about the implications of any payments or compensation from the oil spill.  

Important Changes in Alabama's Child Labor Law…Act 2009-565, signed into law May 19, 2009, reforms Alabama child labor enforcement standards, transferring the permitting process from the public school system to the Department of Labor.  In addition, new record keeping requirements and administrative penalties have been added.  Under the new system, work permits are no longer required for each minor employed. In its place, employers are required to obtain a Child Labor Certificate in order to employ minors. A Class I Certificate is required if employing 14 or 15 year olds and a Class II Certificate is required if employing 16 or 17 year olds. Each location of a business employing minors must obtain the proper certificate(s) in order to employ minors. The cost of a Child Labor Certificate is $15 each and shall be renewed annually.
Apply for a Child Labor Certificate here.  

Failure to Pay Penalty Reminder…Act 2009-144, effective March 24, 2009, imposes a failure to timely pay penalty.  This new penalty applies to any tax amount that was required to be shown on any tax return, if the tax remains unpaid after 30 calendar days from the date the department notifies the taxpayer of the unpaid amount. 

Important Withholding Tax Reminder…Accountants or tax filing services who file withholding tax returns and payments on behalf of employers must register with the ADOR as a bulk filer and must utilize their bulk filer registration when filing withholding tax returns on behalf of their clients. 

Federal Refund Offset…State law requires the administrative fee charged by the U.S. Treasury Department for Alabama's participation in the Treasury Offset Program (TOP), a debt collection program, to be paid by Alabama taxpayers whose federal refunds are intercepted for payment of past-due Alabama income tax debts. 

Title Search Feature Available…Businesses involved in the sale of abandoned motor vehicles now have access to a new title search feature available through ADOR's Web site that will help them meet required notification procedures.