Ala. Code § 40-18-440 Short Title.
40-18-440. Short Title.
This article shall be known and may be cited as the “Alabama Taxpayer Protection and Assistance Act.”
(Act 2017-363, §1.)
Alabama Taxpayer Protection and Assistance Act.
Ala. Code tit. 40, ch. 18, art. 21
in effectAla. Code § 40-18-441 Purpose.
40-18-441. Purpose.
The Alabama Taxpayer Protection and Assistance Act is enacted to protect consumers by establishing a mechanism to ensure that qualified individuals provide tax preparation services in Alabama.
(Act 2017-363, §2.)
Ala. Code § 40-18-442 Definitions.
40-18-442. Definitions.
When used in this article, the following terms shall have the following meanings:
(1) DEPARTMENT. The Alabama Department of Revenue.
(2) INCOME TAX RETURN PREPARER.
(a) A person who prepares for compensation, or who employs one or more persons to prepare for compensation, any income tax return or claim for refund, required to be filed pursuant to this chapter. The preparation of a substantial portion of a return or claim for refund shall be treated as the preparation of that return or claim for refund.
(b) A person is not an income tax preparer if all he or she solely performs the following duties:
1. furnishes typing, reproducing, or other mechanical assistance;
2. prepares returns or claims for refunds for the employer by whom he or she is regularly and continuously employed, or for an affiliate of that employer, including a subchapter K entity for which he or she prepares a return;
3. prepares as a fiduciary, returns or claims for refunds for any person; or
4. prepares claims for refunds for a taxpayer in response to any notice of deficiency issued to that taxpayer or in response to any waiver of restriction after the commencement of an audit of that taxpayer or of another taxpayer if a determination in the audit of the other taxpayer directly or indirectly affects the tax liability of the taxpayer whose claims he or she is preparing.
(3) PERSON. An individual, firm, proprietorship, association, corporation, or another entity.
(4) PTIN. Preparer Tax Identification Number issued by the Internal Revenue Service and referenced in Internal Revenue Service Notice 2011-6.
(Act 2017-363, §3.)
Ala. Code § 40-18-443 Requirements of Taxpayers.
40-18-443. Requirements of Taxpayers.
No person may provide tax preparation services for Alabama income tax returns, unless an IRS issued Preparer Tax Identification Number is provided by such preparer when submitting a return and signing as a paid preparer.
(Act 2017-363, §4.)
Ala. Code § 40-18-444 Duties of the Department.
40-18-444. Duties of the Department.
(a) For taxable years beginning on or after January 1, 2018, the department, by rule, shall require any income tax return preparer, as defined in this article, to include his or her PTIN on any tax return prepared by the income tax return preparer and filed under this chapter, or any claim for refund of tax imposed by this chapter.
(b) The department shall develop and by rule implement a program using the PTIN as an oversight mechanism to assess returns, to identify high error rates, patterns of suspected fraud, and unsubstantiated basis for tax positions by income tax return preparers.
(c) The department, by rule, shall establish formal and regular communication protocols with the Commissioner of the Internal Revenue Service to share and exchange PTIN information on income tax return preparers who are suspected of fraud, disciplined, or barred from filing tax returns with the department or the Internal Revenue Service. The department, by rule, may establish additional communication protocols with other states to exchange similar enforcement or discipline information.
(Act 2017-363, §5.)
Ala. Code § 40-18-445 Enforcement.
40-18-445. Enforcement.
(a) The department may investigate the actions of any income tax return preparer filing Alabama income tax returns and may bar or suspend an income tax return preparer from filing returns with the department for good cause, subject to the appeal rights under Chapter 2A of this title.
(b) In addition to all other penalties provided by law, any person violating this act by failing to provide his or her PTIN shall pay a civil penalty to the department in the amount of $50 per offense, but not to exceed $25,000 per calendar year; however, no penalty shall be imposed if the failure is due to reasonable cause and not due to willful neglect, as determined by the department.
(Act 2017-363, §6.)
Ala. Code § 40-18-446 Rulemaking Authority.
40-18-446. Rulemaking Authority.
The department shall adopt rules to assist with the implementation and enforcement of this article.
(Act 2017-363, §10.)
Source: Alabama Legislature (alison.legislature.state.al.us)URL: https://alison.legislature.state.al.us/code-of-alabamaFetched: 10/20/2026