TAX DEBT RELIEF OPTIONS – ALABAMA DEPARTMENT OF REVENUE


M&M Financial has been successfully resolving back tax liabilities for small businesses and individuals in Alabama since 2007 and nationwide since 2005.  We deal with the IRS and State taxing authorities for you, so you do not have to!  
Alabama Department of Revenue has a group called the Collection Services Division that serves as their internal collection agency for back-taxes. 

Below is some information that will help you start resolving your state tax liabilities.  If you have questions and would like to talk to a licensed Tax Resolution Specialist please do not hesitate to call us at 866-487-5624.


AL-DOR IS TOUGH ON BACK-TAXES


The Alabama Department of Revenue has an arsenal of tools available to collect back-taxes.  If you cannot pay your tax assessment balance the AL-DOR can and often will –
  • file a lien against you or your business, 
  • issue wage garnishments and financial institution garnishments, 
  • issue writs of execution to the sheriff, 
  • issue a 100% penalty assessment, and 
  • revoke a liquor license or other license for businesses.  
The best way to avoid these things is to make arrangements to pay before it gets to that point.  

AL-DOR PAYMENT PLANS TO RESOLVE BACK TAXES


According to the Alabama Taxpayer Bill of Rights, 12-month Installment Payment Agreements with a balloon payment due at the end of the term are allowed.  If you cannot pay the balloon payment, the AL-DOR may be willing to grant another 12-month installment agreement. But, this is at the Department’s discretion.  That means you need to be on your best behavior.

PENALTY RELIEF FOR ALABAMA TAX DEBTS


Currently, the Alabama Department of Revenue does not have an Offer in Compromise to settle individual or business tax debts.  

One option to reduce your Alabama tax debt is to submit a request to the Alabama Taxpayer Advocacy office for a waiver of penalties.  To get serious consideration for penalty relief, you will need to prove that you experienced a hardship or other circumstances out of your control that caused the taxes to accrue.  You can find more information about your penalty relief options HERE.  

TAX RESOLUTION CASE EXAMPLES


The Alabama Department of Revenue has some flexibility when it comes to back tax liabilities.  Each case varies based on factors such as compliance history, type of tax owed and total amount past due.  Click below to see some case examples in your area negotiated by M&M.


page last reviewed 1/4/2018

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