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

   1. (a) Refund Returns; or
   2. (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. (2) The failure to file penalty shall equal the  greater of:

   1. (a) 10 percent of any additional tax due after  prepayments made on or before the due date, or
   2. (b) Fifty dollars ($50).

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

   1. (a) An income Tax Return; including non-timely filed  returns for which a refund is due;
   2. (b) A Withholding Tax Return; including returns  filed with no tax amount filled-in, or returns which indicate no  tax is due;
   3. (c) A Sales Tax Return; including returns filed with  no tax amount filled-in, or returns which indicate no tax is  due;
   4. (d) Form W-2;
   5. (e) Schedule K-1, or
   6. (f) Any other “form” or “return” that is defined in  Section 40-1-1(2) and Section 40-1-1-(14).
4. (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 delineate in Rule 810-14-1-.33.01.

Author: Michael E. Mason, Tiniko Arrington

Statutory Authority: Code of Ala. 1975, §40-2A-7(a)(5).

History: Filed June 8, 2007; effective July 13, 2007. Amended: Published February 28, 2025; effective April 14, 2025.