ALDOR has the authority to create a payment plan on tax liabilities that have reached Final Assessment when the plan will facilitate collection of a tax liability. See §40-2A-4(b) (6), Code of Ala. 1975. Payment plans are created at ALDOR’s discretion.  

Payment plans can be created by contacting the Collection Services Division at 334-242-1220, or by visiting My Alabama Taxes. 

In limited cases, a taxpayer can complete a Collection Information Statement – Form C:41E(6/06) for a formal payment plan, depending on the taxpayer’s circumstances and ALDOR’s agreement to the plan. This form has a documentation requirement that is solely the responsibility of the taxpayer. Completion of the form by the taxpayer does not automatically imply that a formal payment plan will be granted by the Alabama Department of Revenue. Incomplete forms will not be processed, and collection action may proceed from that point forward if no plan is established.

Collection action can proceed if a payment plan defaults. Interest will continue to accrue while a payment plan is in place, and it will be added to any unpaid balance remaining at the completion of a payment plan.