Alabama Administrative Code
Title 810 - ALABAMA DEPARTMENT OF REVENUE
Chapter 810-14-1 - TAXPAYERS; BILL OF RIGHTS AND UNIFORM REVENUE PROCEDURES
Section 810-14-1-.31 - Penalty For Underpayment Due To Negligence
Current through Register Vol. 43, No. 02, November 27, 2024
(1) If any part of an underpayment of any tax is due to negligence or disregard of rules and regulations, but without intent to defraud, a 5 percent penalty on the underpayment attributable to negligence or disregard shall be added.
(2) The "negligence" penalty may be imposed for, but is not limited to, the following situations:
(3) The following are examples of situations in which the negligence penalty shall not be imposed:
(4) The negligence penalty will not be imposed if the essential facts are disclosed on the return to allow for full disclosure of transactions in such a manner that the facts are sufficient to enable an auditor to spot any possible discrepancies.
(5) The negligence penalty will generally not be imposed where failure to report income or to overstate a deduction is in good faith reliance on advice of a competent tax expert.
Author: George Mingledorff
Statutory Authority: Act 92-186.