ALABAMA DEPARTMENT OF REVENUE BACK TAX RELIEF
Get started resolving your state tax liabilities using the information below. If you still need help, reach out to us using the contact form to the right of this page.AL-DOR Monthly Payment Plan
The AL-DOR has revised their Plain Talk About Your Tax Liability Flier on their website. Unfortunately, they don’t really give you much specific information about what to do when you owe back taxes.
This web page offers some more basic information and includes a link to their Collection Information Statement and Installment Agreement request form.
The Installment Agreement rules suggest 24 for months to pay back taxes over time for individual tax liabilities and 2 months for business tax liabilities. You may also end up with a balloon payment at the end with the possibility of renewing the Installment Agreement for another 12 month period, at the Department of Revenue’s discretion.
State of Alabama Offer in Compromise
As I write this, the Offer in Compromise is not an option to resolve your back taxes owed to the Alabama Department of Revenue.
Penalty Relief
810-14-1-.05 Procedure for Abatement of Penalties.
"(2)The department may abate any penalties attributable to erroneous written advice furnished to a taxpayer by an employee of the department if: (a) the employee provided the written advice in good faith while acting in an official capacity; (b) written advice was reasonably relied on by the taxpayer; (c)the written advice was reasonably relied on by the taxpayer; (c) the written advice was given in response to a specific written request of the taxpayer; and (d) the penalties did not result from the taxpayer's failure to provide adequate or accurate information."
In plain talk this means that the AL-DOR doesn't remove penalties very often for those that fall behind with their tax obligations.
If you have an issue solving a problem with the AL-DOR contact Taxpayer Advocacy at (205) 761-4876.
page last revised 02/01/2024