Alabama Department of Revenue Letters Misreporting Nonpayment by Taxpayers

Following this most recent 2022 filing season, many taxpayers in Alabama have reported receiving letters regarding nonpayment. This situation has caused concern among taxpayers and highlighted the need for effective communication and guidance.

Nonpayment Letters

Nonpayment letters have been particularly prevalent in the case of fiduciary returns, specifically Trust Returns (Form 41).

Although the reasons behind the nonpayment letters have not been explicitly disclosed by ADOR, it is crucial for taxpayers to take appropriate steps. If taxpayers believe the letter to be in error because payment was timely mailed, the ADOR has advised not to respond to the notice, as the letter will prompt a response on already overloaded ADOR resources.  Furthermore, they advise taxpayers not to stop payment on any checks that have already been mailed, as this can complicate the resolution process and will disqualify the taxpayer from having timely filed their payment, thereby incurring more penalties.

Importance of Electronic Payments:

We have received private information suggesting that the Alabama Department of Revenue (ADOR) has been planning to downsize its payment processing personnel and reallocate resources to other areas. While the specifics of this restructuring plan have not been publicly disclosed, it underscores the need for taxpayers to consider electronic payments.

Electronic payment methods, such as those available through the My Alabama Tax website, offer numerous advantages. They allow for faster processing, reduced reliance on manual handling, and improved accuracy.

By leveraging electronic payment methods, taxpayers can contribute to the overall efficiency of tax payment processing and help alleviate the strain on ADOR’s processing department. This transition not only benefits individual taxpayers but also supports ADOR’s efforts to optimize their operations and resource allocation.

Using My Alabama Tax Website for Payments:

Taxpayers are encouraged to utilize the My Alabama Tax website. Registering on the website is simple and requires only a Social Security number for individuals. The website provides a secure platform to post tax payments conveniently.

If taxpayers have any questions or require assistance with registration on the My Alabama Tax website, they can reach out to the dedicated support team at the following contact information:

As always, reach out to your Dent Moses advisor if you have questions.