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ADOR Ceasing Direct Deposits for Business Tax

  • April 1, 2016

The Alabama Department of Revenue considers the security of the information that the taxpayers of Alabama have entrusted us with, to be our top priority. In keeping with that mission, ADOR is implementing enhanced security measures to help protect taxpayers from occurrences of tax refund fraud. In an effort to reduce the opportunities for refund fraud for entities subject to business tax, direct deposits will no longer be available as an option for refunds petitioned from the Alabama Department of Revenue for Business Privilege Tax, Corporate Income Tax and Pass Through Entity Tax. Any outstanding requests petitioning for a refund, requesting a direct deposit, will be issued as paper checks. If you are using commercial tax preparation software to e-file any of the business tax returns, the built-in direct deposit feature, which is contained within the payment option, has been disabled. While the Department exercises extreme caution in protecting the data provided by Alabama taxpayers, this additional preventive measure helps the Department avoid sending refunds to an account that has been compromised and ensures taxpayers that their data is being protected with the highest level of safety.