810-14-1-.30.01   Penalty for Failure to Timely File Tax.    

            (1)       When a taxpayer fails to file any form or return required to be filed with the Department, including:

                        (a)       Refund Returns; or 

                        (b)       Returns that indicate no tax is due; on or before the statutory due date (determined with regard to any extensions of time for filing), a failure to file penalty shall be imposed.

           (2)        The failure to file penalty shall equal the greater of:

                        (a)       10 percent of any additional tax due after prepayments made on or before the due date, or   

                        (b)       Fifty dollars ($50).

           (3)        For the purposes of this Rule, a “form” or “return” includes:

                      (a)         An Income Tax Return; including non-timely filed returns for which a refund is due;

                        (b)       A  Withholding Tax Return; including returns filed with no tax amount  filled-in, or returns which indicate no tax is due;     

                        (c)        A Sales Tax Return; including returns filed with no tax amount  filled-in, or returns which indicate no tax is due; 

                        (d)       Form W-2, or

                        (e)       Any other “form” or “return” that is defined in Section 40-1-1 (2) and Section 40-1-1 (14).                          

            (4)       The "failure to timely file" penalty may be waived in whole or in part by the Department upon a showing by the taxpayer of “reasonable cause” as delineated in Rule 810-14-1-.33.01.  (Authority:  Sections 40-2A-7(a)(5), Code of Alabama 1975) (History:  New rule:  Filed June 8, 2007, effective July 13, 2007).

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