The department may seize a state tax refund to reduce a tax liability. The department may use any other collection method allowed by law as needed to collect the tax liability.
Yes. A discount is allowed if the tax is paid before the 20th day of the month in which the tax is due. The sales tax discount consists of 5% on the first $100 of tax due, and 2% of all tax over $100. Please note, however, that the monthly discount may not exceed $400. However, non-state administered local taxes that may be filed through MAT/ONE SPOT may have a different discount rate and MAT has been programmed accordingly.
Generally a petition for refund shall be filed with the department or a credit allowed, within (i) three years from the date that the return was filed, or (ii) two years from the date of payment of the tax, whichever is later, or, if no return was timely filed, two years from the date of payment of the tax. See Section 40-2A-7, Code of Alabama 1975, for more information.
The petition must bear the signature of the party involved. If a petitioner is an individual, the individual must sign the form. If a petitioner is a partnership or limited liability partnership, a partner must sign the form. If a petitioner is a corporation, an officer of the corporation must sign the form. If a petitioner is a limited liability company, a member must sign the form. If a petitioner is a representative of the taxpayer, the Alabama Department of Revenue’s official Power of Attorney (POA) form is required.
The time required to process a petition for refund will depend on the amount of the refund and the amount of documentation received. Any petition for refund over $25,000 or a large amount of documentation will require more processing time. The Department has 6 months to approve or deny a petition for refund.
Your petition must be documented. The petitioner should attach invoices, receipts, check copies, accrual records, copies of returns, and other documentation to the petition sufficient to provide an audit trail. If invoice copies are not attached, then a schedule of the invoices providing invoice date, invoice number, invoice amount, and a description of the merchandise should be attached. No refund will be issued unless proper documentation is attached.
The form should be mailed to the Alabama Department of Revenue, Sales and use Tax Division, Refund Section, P.O. Box 327710 Montgomery, AL 36132-7710.
You will submit a Direct Petition for Refund Form ST-5 if the overpayment of taxes was submitted directly to the department by you. The Direct Petition for Refund Form ST-5 can be found HERE.
You will submit a Petition for Refund of Taxes Paid to Seller Form ST-6 if the overpayment of taxes was made to a vendor who submitted the taxes to the department. Petition for Refund Taxes Paid to Seller Form ST-6 can be found HERE.
No, the Sales and Use Tax Division does not automatically issue a refund check. You will need to complete a petition for refund form.