HB105 Summary

• Creates the Alabama Tax Appeals Commission as an independent executive branch agency to resolve tax disputes between taxpayers and the Department of Revenue, becoming fully operational October 1, 2012.

• Establishes the Tax Appeals Commission to hear appeals of assessments and refund denials administered by the Department of Revenue and certain taxes from self-administered counties/municipalities that do not opt-out.

• Amends Alabama Taxpayers' Bill of Rights provisions to increase protections including broader "innocent spouse" relief, increases negligence penalty from 5% to 20%, fraud penalty from 50% to 75%, and frivolous return/appeal penalties from $250 to $1,000.

• Extends appeal filing periods from 30 to 60 days for preliminary and final assessments, requires amended state income tax returns within 180 days of federal audit changes, and allows taxpayers to appeal without pre-payment of assessed amounts.

• Abolishes the Administrative Law Division of the Department of Revenue, with existing appeals continuing to be handled there until October 1, 2012, and self-administered county/municipality appeals transferred October 1, 2013.