TAX DEBT RELIEF OPTIONS – ALABAMA DEPARTMENT OF REVENUE


M&M Financial has been successfully resolving back tax liabilities for small businesses and individuals in Alabama since 2007 and nationwide since 2005.  We deal with the IRS and State taxing authorities for you, so you do not have to!  
Alabama Department of Revenue has a group called the Collection Services Division that serves as their internal collection agency for back-taxes. 

Below is some information that will help you start resolving your state tax liabilities.  If you have questions and would like to talk to a licensed Tax Resolution Specialist please do not hesitate to call us at 866-487-5624.


AL-DOR IS TOUGH ON BACK-TAXES


The Alabama Department of Revenue has an arsenal of tools available to collect back-taxes.  If you cannot pay your tax assessment balance the AL-DOR can and often will –
  • file a lien against you or your business, 
  • issue wage garnishments and financial institution garnishments, 
  • issue writs of execution to the sheriff, 
  • issue a 100% penalty assessment, and 
  • revoke a liquor license or other license for businesses.  
The best way to avoid these things is to make arrangements to pay before it gets to that point.  

Contact Us, We Can Help You


AL-DOR PAYMENT PLANS TO RESOLVE BACK TAXES


In general, we've found that a personal tax liability may get up to 24 months to pay back the debt, while a business is more likely to get a 12-month Payment plan with a balloon payment due as the final payment are allowed.  If you cannot pay the balloon payment, the AL-DOR may be willing to grant another 12-month installment agreement. But, this is at the Department’s discretion.  That means you need to be on your best behavior.

PENALTY RELIEF FOR ALABAMA TAX DEBTS


AL-DOR Offer in Compromise


Currently, the Alabama Department of Revenue does not have an Offer in Compromise to settle individual or business tax debts.  

Per the AL Office of Taxpayer Advocacy website (as of 11/01/2022)

"The Office of Taxpayer Advocacy cannot:
  • Reduce tax liability through offer of compromises. (Note: The State of Alabama does not accept offers of compromise when taxes are legally due)"


AL-DOR Penalty Removal


AL-DOR document, Plain Talk II, Collection of Your Tax Liability states the following under the 10 Most Commonly Asked Questions Concerning Collection of Tax Assessments.
 
“5. May penalties and interest be waived by the Collection Services Division?
 
No. A request for waiver of penalties can only be considered prior to the time the assessment is made final. Once an assessment reaches the Collection Services Division, the amount due is as final as a judgment entered by a circuit court.”

TAX RESOLUTION CASE EXAMPLES


The Alabama Department of Revenue has some flexibility when it comes to back tax liabilities.  Each case varies based on factors such as compliance history, type of tax owed and total amount past due.  Click below to see some case examples in your area negotiated by M&M.


page last reviewed 01/03/2024

Get Free Tax Guides & Evaluation