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AL HB377

Bill

Status

Introduced

3/29/2011

Primary Sponsor

Alan Harper

Click for details

Origin

House of Representatives

Regular Session 2011

AI Summary

HB377 Summary

  • Adds Article 7 to Chapter 29 of Title 40 of the Alabama Code establishing comprehensive requirements for disclosure and penalties related to reportable transactions and tax shelters.

  • Requires taxpayers to disclose reportable transactions (including listed transactions) on state income tax returns, with specific timing rules based on when transactions were entered into and whether they result in tax reductions.

  • Imposes penalties ranging from $10,000 to $100,000 for individuals and $50,000 to $200,000 for other entities for failure to disclose reportable transactions, with additional penalties up to 10% of the tax benefit from the transaction.

  • Requires material advisors to maintain lists of clients receiving advice on reportable transactions and file disclosures with the state, with penalties of $50,000 to $200,000 for failure to comply and $10,000 per day for failing to produce lists upon request.

  • Authorizes the state to bring injunctive civil actions against persons engaged in conduct subject to penalties under the article, with jurisdiction in Montgomery County Circuit Court.

Legislative Description

Income tax, reportable transactions, taxpayer responsibility for disclosure, waivers, injunctive relief, penalties, Secs. 40-29-121 to 40-29-130, inclusive, added

Taxation

Last Action

Read for the first time and referred to the House of Representatives committee on Ways and Means Education

3/29/2011

Committee Referrals

Ways and Means Education3/29/2011

Full Bill Text

No bill text available