TAX DEBT RELIEF OPTIONS – ALABAMA DEPARTMENT OF REVENUEM&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 1/4/2018Get Free Tax Guides & Evaluation