Current through Register Vol. 42, No. 11, August 30, 2024
(1) The Commissioner, or a delegate thereof,
is authorized to enter into an installment payment agreement with a taxpayer if
it is determined that the agreement will facilitate collection of a tax
administered or collected by the department. An installment payment agreement
can only be entered into for a tax administered or collected by the department
that has been finally assessed.
(2)
Determination of the Ability To Pay.
(a) Taxpayers must be able to provide
financial statements indicative of available assets, including but not limited
to cash, real property, or personal property to determine whether an
installment agreement will facilitate the collection of the tax.
(b) Agreements extended to corporations for
the payment of trust fund taxes require a personal guarantee of the responsible
corporate officer(s) who have personal liability under §§
40-29-72 and
40-29-73,
Code of Ala. 1975, as amended.
(3)
Taxpayer Required
Documentation.
(a) Taxpayers
requesting an installment payment agreement from the department may be required
to complete a Collection Information Statement and submit proof of financial
information using the forms prescribed by the department. These forms must:
1. Disclose all assets and
expenses.
2. Be signed under
penalties of perjury.
3. Provide
accurate and complete information.
(b) Any inaccurate or incomplete information
provided by the taxpayer will result in the termination, alteration, or
modification of the agreement, upon notice provided in accordance with
paragraph (5) of this rule.
(c) The
department may request updated Collection Information Statements whenever there
is reason to believe that the taxpayer's ability to pay has significantly
changed.
(4)
Requirements and Terms of Installment Payment
Agreements.
(a) Any taxpayer
entering into an installment payment agreement with the department is
responsible for making payments according to the terms of the installment
payment agreement. The installment agreement will specify:
1. The payment amounts.
2. The payment due dates.
3. The address to which the payment are to be
directed.
4. The agreement
termination date.
(b)
Any refund that may be due from the department while an installment payment
agreement is in affect may be credited against the tax liability that is the
subject of the installment payment agreement.
(c) During the course of the installment
payment agreement, additional interest as provided by law will accrue on the
total unpaid balance at the rate established under the authority of §
40-1-44,
Code of Ala. 1975.
(d) All tax returns for taxes administered or
collected by the department that become due while the agreement is in effect
must be filed by the due date, and all taxes due in connection with the return
must be timely remitted, unless the taxpayer has contested the validity or
amount of the tax pursuant to the terms of Chapter 2A of Title 40,
Code of Ala. 1975.
(e) During the course of the installment
payment agreement, taxpayers are required to provide notification to the
department of any significant change in financial condition that would affect
the ability to pay the liability.
(5)
Alteration, Modification, or
Termination of the
Agreement.
(a) The following circumstances may result in
termination, alteration, or modification of an installment payment agreement:
1. Failure to make a payment according to the
terms of the agreement.
2. Failure
to notify the department of any significant change in financial condition that
would affect the taxpayer's ability to pay or to provide updated Collection
Information Statements as requested by the department pursuant to paragraph (3)
of this rule.
3. A determination by
the Commissioner or the Commissioner's delegate that there is reason to believe
that the collection of the tax liability which is the subject of the agreement
is in jeopardy.
Note: Jeopardy is a condition that would prohibit
or impede collection of a tax assessment characterized by the concealment or
transfer of assets or the attempt to flee the state with assets.
4. Failure to file or pay any
taxes administered by the department that come due while the installment
payment agreement is in effect.
(b) Except in the case of jeopardy, prior
notice will be given to the taxpayer should it become necessary to alter,
modify, or terminate an installment payment agreement Notice of termination of
an installment payment agreement shall include a statement indicating that the
department may collect the balance due by any method allowed by law. Notice may
be provided by any of the following methods:
1. Written notice to the taxpayer's last
known address.
2. Delivery of
written notice in person.
3.
Electronic notification.
(6)
Recording of Liens and Notice
to Taxpayers. An installment payment agreement will in no way
prevent the department from recording liens with the Secretary of State, county
probate offices, or any other location necessary to protect the state's
interest in property of the taxpayer. Liens may not be released until the final
payment has been received and cleared, unless the Commissioner elects
otherwise.
Author: Miriam L. Dingman
Statutory Authority:
Code of Ala.
1975, §§
40-1-44,
40-2A,
40-2A-7(a)(5),
40-2A-4(b)(6),
40-29-72,
40-29-73.
