AL HB509

Amends Section 40-2A-11 of the Alabama Code to exempt individual income tax returns filed with no tax due from the failure-to-file penalty.

Removes the penalty of the greater of 10 percent of additional tax owed or $50 when an individual files an income tax return timely but shows no tax liability at the time of filing.

Retains all other penalty provisions for failure to timely file, failure to timely pay tax, negligence, fraud, and frivolous returns.

Becomes effective immediately upon passage and approval by the Governor for tax returns filed for the 2011 and subsequent tax years.