Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-13-1 - PAYMENT OF TAXES THROUGH ELECTRONIC FUNDS TRANSFER › Section 810-13-1-.13 - Penalties For Noncompliance

Current through Register Vol. 42, No. 9, June 28, 2024
(1) The provisions of
Code of
			 Ala. 1975
, as amended, shall govern the administration of any tax,
			 interest, or penalty assessed due to late EFT payments, except as provided in
			 these rules.
(2) No specific
			 additional penalty provisions are provided concerning compliance with the EFT
			 tax payment requirement. Rather, the general provisions for all taxpayers
			 apply. To avoid the imposition of penalties, timely filing of the tax return
			 along with timely payment in accordance with the provisions of
Code
			 of Ala. 1975
, as amended, and the provisions of these rules is
			 required.
(3) Failure of a taxpayer
			 to respond to the notification from the Department concerning the required use
			 of EFT to make payments for a tax type or failure to timely or properly make
			 EFT payments in accordance with these rules shall subject the taxpayer to
			 applicable penalty, interest, and loss of discount, as provided by the
Code of Ala. 1975
, as amended, for delinquent or
			 deficient tax payments. If payment is made for a tax type for which a taxpayer
			 was selected to make payments using EFT, and the payment is made in a method
			 which is not in accordance with the procedures stated in these rules, a
			 delinquent payment penalty for that tax type as specified in the
Code of Ala. 1975
, as amended, may be assessed. In
			 addition to any penalty which may be imposed, interest shall be added to the
			 amount of tax due from the due date of the tax payment to the date that the
			 funds become available to the State Treasury. It is presumed, in the absence of
			 evidence to the contrary, that said funds will be available on the third
			 business day following receipt of payment.
(4) Penalties may be waived when the
			 circumstances causing delinquency are beyond the control of the taxpayer.
Errors made by the Data Collection Center, the State Treasury
				or the Department which result in a late payment by the taxpayer shall not
				subject the taxpayer to late payment penalties, interest, or loss of applicable
				discount for the late payment.
(5) When a taxpayer uses the ACH Debit
			 payment method, the State of Alabama's bank is the originating bank and is
			 responsible for the accuracy of the transmission. If the taxpayer timely
			 initiated the ACH Debit transaction, received a verification number, and can
			 show adequate funds were available in the bank account, no penalties shall
			 apply with respect to the payment if the transaction was not properly
			 completed.
(6) When a taxpayer uses
			 the ACH Credit payment method, the taxpayer's bank is the originating bank and
			 the taxpayer is primarily responsible for the accuracy and proper completion of
			 the transaction. The taxpayer must show timely initiation of the transaction,
			 must have provided the correct information for the NACHA CCD+ entry and the
			 required TXP Banking Convention addenda record, must show that there were
			 sufficient funds in the account, and must show that the financial institution
			 properly completed the transaction in a timely manner in order to prove timely
			 compliance. If the taxpayer can make this showing, then no penalties shall
			 apply with respect to the payment if the transaction was not properly
			 completed.
(7) A taxpayer who is
			 required to make EFT payments and who is unable to make a timely payment
			 because of system failures within the Automated Clearing House System, which
			 are beyond the taxpayer's control, shall not be subject to penalty or interest
			 for late payment or loss of applicable discount.
Author:
Ed Cutter
Statutory Authority:
Code of Ala.
				  1975
, §§
										41-1-20 through
				  41-1-23.