(1) Pursuant to §40-23-6.1, Code of Ala. 1975, the
commissioner may, subject to the appeal provisions allowed in
Chapter 2A of Title 40, suspend or revoke a license, or deny a
license application or renewal, issued under §§40-12-221,
40-23-6, or 40-23-66 for reasonable cause. Reasonable cause
includes but is not limited to:
- (a) The taxpayer pleads guilty to fraud or is found
guilty of fraud in taxes due to be reported for the licenses. - (b) The department determines that there is any
material misstatement which, if accurately represented on the
license application, would have resulted in the department’s
determination that the applicant was not engaged or continuing in the business for which a license would be issued pursuant to §§ 40-23-6, 40-23-66, and 40-12-221, Code of Ala.1975. - (c) The taxpayer fails to notify the department within
a reasonable amount of time that the business the license is
issued to fails to begin or ceases to open. - (d) The taxpayer fails to notify the department of
changes of conditions in ownership or business structure after a
license is granted. Any changes of conditions in ownership or
business structure requires a new license application. - (e) The taxpayer fails to comply with the provisions
of Chapter 12 and Chapter 23 of Title 40, or any rule
promulgated. - (f) The taxpayer fails to provide or maintain a surety
bond as required in §40-23-6, Code of Ala. 1975.
- (2) For any application, account, or license that is
denied, closed, suspended, or revoked, the department will
notify the taxpayer in writing by first-class U.S. mail to the
taxpayer's last known address and provide appeal rights in
accordance with §40-2A-8, Code of Ala. 1975.
Author: Ginger Buchanan
Statutory Authority: Code of Ala. 1975, §§40-2A-7(a)(5), 40-12-221, 40-23-6; 40-23-6.1, 40-23-66; Act 2019-253.
History: New Rule: Published October 31, 2019; effective
December 15, 2019.