SB223 Summary

• Creates a new independent Alabama Tax Appeals Commission to hear tax disputes between taxpayers and the Department of Revenue, replacing the Administrative Law Division and becoming fully operational October 1, 2013.

• Expands "innocent spouse" relief provisions and increases penalties for negligence (from 5% to 20%), fraud (from 50% to 75%), and frivolous appeals/returns (from $250 to $500) to align with federal tax law.

• Requires taxpayers to file amended state income tax returns within 180 days after federal audit changes become final, with extended assessment periods of up to one year following amended return filing.

• Extends the time period for taxpayers to file appeals of preliminary and final assessments from 30 days to 60 days, and establishes a new expedited revenue ruling procedure with a 30-day issuance requirement.

• Allows self-administered counties and municipalities to opt out of Tax Appeals Commission jurisdiction for their local taxes, with the Commission gaining jurisdiction over such appeals on October 1, 2014.