Today is Thursday, July 24, 2014
Important Notices!
There are currently no notices available.
 
Alabama Department of Revenue - Tax Policy and Research Division

About the Tax Policy and Research Division

The Tax Policy and Research Division prepares fiscal impact analyses on legislation, prepares annual revenue estimates, develops statistical summaries and analyses, and drafts revenue-related legislation. The division analyzes legislation that affects the Administrative Procedure Act of the Code of Alabama to ensure proper adherence to these regulatory provisions. The division also assists in establishing new policies and procedures to perfect the processing of rules throughout the department with an objective to continue to improve the overall effectiveness of the agency and ensure the protection of the public health, safety, and welfare.

The Nexus Discovery Unit within Tax Policy and Research is responsible for locating taxpayers who have "nexus" in AL and are not paying their fair share of taxes. "Nexus," for tax purposes, is concerned with whether or not an out of state entity has sufficient connections to a taxing jurisdiction to subject that entity to certain state taxes. An important function of nexus discovery is to make a determination that a business has nexus within our state, and if so, whether that business is tax-compliant. In addition, the nexus discovery unit coordinates the nexus discovery activities between our tax divisions.

The division also administers the Voluntary Disclosure Program which is offered as a service to business taxpayers who wish to become compliant with Alabama tax laws. The program is offered to business taxpayers who have not registered, filed returns, or been contacted by the Alabama Department of Revenue or its agents, within seven years prior to the initial written request. Upon acceptance of the request, the taxpayer enters into a binding Voluntary Disclosure Agreement with the Department to register, file and pay delinquent taxes and interest for a mandatory three year look-back period. Under the terms of this Agreement, the Department agrees to waive civil penalties and not audit prior to the look-back period.

Another function of the division is to monitor the creation of administrative rules within the department in order to properly document and clarify information needed to interpret accurately the various tax statutes of the Code of Alabama. This documentation process includes the preservation of the need for a clarifying rule, the intention of the author of the rule, information submitted at rule hearings, and any subsequent developments that will ultimately culminate with a rule certification to the Alabama Legislative Reference Service. The division also analyzes current and new legislation that affects the Administrative Procedure Act of the Code of Alabama to ensure proper adherence to these regulatory provisions and assists in establishing new policies and procedures to perfect the processing of rules throughout the department with an objective to continue to improve the overall effectiveness of the agency and ensure the protection of the public health, safety, and welfare.