Ala. Code § 40-30-1 Short Title.
40-30-1. Short Title.
This chapter shall be known as and may be cited as the “Electronic Tax Return Filing Act.”
(Acts 1997, No. 97-493, p. 878, §1.)
Electronic Tax Return Filing Act.
Ala. Code tit. 40, ch. 30
in effectAla. Code § 40-30-2 Purpose and Legislative Intent.
40-30-2. Purpose and Legislative Intent.
(a) Purpose. The purpose of the Electronic Tax Return Filing Act is to authorize the Department of Revenue to accept tax returns and other documents of all types filed in electronic commerce without violating other statutes originally drafted for the use of paper returns submitted either personally or through the mail.
(b) Intent of the Legislature. It is recognized that because of constant technological advances, the statutory outline herein for filing tax returns and other documents electronically cannot encompass all of the intricacies in requirements or qualifications currently or into the future. The bulk of the requirements and qualifications must be implemented through the Department of Revenue’s authority to promulgate regulations hereunder. It is the intent of the Legislature to allow the Department of Revenue the necessary flexibility to adopt specific regulations for accepting tax returns by electronic media, to control the integrity of the data submitted, to reduce processing costs and processing times, to aid accuracy, reduce complexities of filing, expedite the processing of refunds to taxpayers, and to update signature and return requirements.
(Acts 1997, No. 97-493, p. 878, §2.)
Ala. Code § 40-30-3 Definitions.
40-30-3. Definitions.
Notwithstanding any other laws or understandings to the contrary, the following terms shall have the following meanings throughout this chapter:
(1) DEPARTMENT. The Alabama Department of Revenue.
(2) ELECTRONIC FILING. The filing of a tax return or other document of any type by any medium acceptable to the department as provided by rule or regulation, which may include but is not limited to the filing of returns and other documents by telephone transmission, electronic transmission, disk transfer, automated clearing-house, value added networks, or magnetic media.
(3) ELECTRONIC RETURN ORIGINATOR. A firm, organization, or person that provides services as an electronic return preparer, or an electronic return collector, or both.
(4) ELECTRONIC RETURN PREPARER. A firm, organization, or person who prepares tax returns including filing declarations, for taxpayers who intend to have their returns electronically filed.
(5) ELECTRONIC RETURN COLLECTOR. A firm, organization, or person who accepts completed tax returns, including filing declarations, for taxpayers who intend to have their returns electronically filed.
(6) FILING DECLARATION. A packet of information that is maintained by the electronic return originator, submitted to the Department of Revenue, or maintained by the taxpayer, in accordance with regulations of the department. The filing declaration includes all documents usually submitted with a tax return which may be more specifically designated by regulation. The filing declaration shall be considered a part of the tax return.
(7) SOFTWARE DEVELOPER. A firm, organization, or person which sells prepackaged software products or develops customized software for formatting returns to electronic filing specifications.
(8) TRANSMITTER. A firm, organization, or person that transmits electronic returns or other documents directly to the department or its designated receiver.
(Acts 1997, No. 97-493, p. 878, §3.)
Ala. Code § 40-30-4 Electronic Filing Acceptance.
40-30-4. Electronic Filing Acceptance.
The department shall have the authority to accept electronically filed returns or other documents of any type which meet the requirements of this chapter and the department’s regulations. Electronically filed returns may be accepted if submitted directly by the taxpayer, or by any entity authorized by the department in accordance with its regulations.
(Acts 1997, No. 97-493, p. 878, §4.)
Ala. Code § 40-30-5 Electronic Filing Return and Signature Requirements.
40-30-5. Electronic Filing Return and Signature Requirements.
(a) Electronic Filing Return. The tax return consists of the electronic transmission and electronic data, and any and all supporting documentation as required by regulation.
(b) Electronic Filing Signature Requirements. The signature requirement for all of the tax returns or other documents required to be filed for any tax or other matter administered by this department will be met if the submission is made pursuant to department regulations. The taxpayer’s and the preparer’s signature in the filing declaration is presumed to be a valid signature of the person with the responsibility for the filing of the tax return. The electronic return preparer shall be responsible for the verification of the taxpayer’s and the preparer’s signature in the filing declaration. In addition, all electronic return originators may be required by the department by regulation to maintain valid and verified signatures and other documents for the department.
(Acts 1997, No. 97-493, p. 878, §5.)
Ala. Code § 40-30-6 Qualification of Electronic Return Originators, Transmitters and Software Developers.
40-30-6. Qualification of Electronic Return Originators, Transmitters and Software Developers.
(a) Generally. Qualified electronic return originators, qualified transmitters, and qualified software developers serve as agents of the Department of Revenue. Qualification with the department as an electronic return originator, transmitter, or software developer does not involve a property right of the party so qualified and such qualification may be revoked by the department at any time. The department may by regulation provide specific and general requirements for qualifications.
(b) Qualification. An entity or person may be qualified with the department as an electronic return originator, a transmitter, or as a software developer upon notification of the entity’s or person’s application. If the application for qualification is not accepted by the department, the party making the application may appeal the decision of the department pursuant to Section 40-2A-8. The department may promulgate regulations for the qualifications of electronic return originators, transmitters, and software developers. The failure of the applicant to meet minimum requirements for electronic return originators, transmitters, or software developers is reasonable cause for the department to deny the application for qualification or to revoke a previously granted application.
(c) Revocation of Qualification for Cause. The department may revoke an accepted qualification at any time for cause. Revocation for cause includes but is not limited to actual fraud or failure to adhere to any regulations of the department. An electronic return originator, transmitter, or software developer whose qualification has been revoked by the department is to be notified of the revocation of qualification by certified mail to their last known address or by actual notice. An entity whose qualification has been revoked may appeal the revocation of qualifications for cause by the same process and subject to the same limitations as an appeal under Section 40-2A-8. A revocation of qualification shall be effective upon the mailing of the revocation notice. This revocation of qualification may be stayed only as provided by subsection (d) of this section during the pendency of any appeal of the decision to revoke their qualification. A revocation of qualification for cause will not be considered a waiver of any other remedy at law or equity which the department may pursue against the party whose qualification is revoked.
(d) Temporary Qualification during Pendency of Appeal from Revocation of Qualification for Cause. If requested by the electronic return originator, transmitter, or software developer a temporary qualification may be granted by the Commissioner of the Department of Revenue to be effective during the pendency of the appeal. As a consideration in the grant of a temporary qualification, the commissioner may require a bond and personal guarantees to protect the interest of the department during the pendency of the appeal. The decision of the commissioner as to whether to grant the temporary qualification is final.
(Acts 1997, No. 97-493, p. 878, §6.)
Ala. Code § 40-30-7 Rulemaking Authority.
40-30-7. Rulemaking Authority.
The department, whenever feasible, shall standardize the method of filing returns, license applications, and methods of payments. The department may prescribe by administrative rule the method of filing tax returns, license applications, and other information related to laws for which the department is responsible for administering as well as the method of payment for such taxes, licenses, and other information in order to standardize these processes whenever feasible. Such rules shall be promulgated in accordance with the Administrative Procedure Act and shall be reviewed every five years in accordance with the Red Tape Reduction Act.
(Act 2017-227, §2.)
Source: Alabama Legislature (alison.legislature.state.al.us)URL: https://alison.legislature.state.al.us/code-of-alabamaFetched: 10/20/2026