Why am I being audited?
The Alabama Department of Revenue conducts audits of tax returns and the taxpayer’s records to determine taxpayer compliance with Alabama’s tax laws.
How can I prepare for an audit?
If your return is selected for audit, you will be notified through the mail. The notice will provide information as to what records you need to provide and how the documentation should be submitted.
If your audit is to be conducted by a Taxpayer Service Center, you will receive two notices. The first notice will notify you that your return has been selected for audit and will provide a brief overview of what to expect. Once your return has been assigned to an auditor, you will receive a second notice indicating what records you will need to provide.
Once you receive notice of the required records, you should begin gathering, organizing and copying the information requested in your notice.
When and where will the audit be performed?
The notice you receive will provide details as to how the documentation should be submitted. If your audit is conducted by a local Taxpayer Service Center, you will be given an appointment date and time once your file is assigned to an auditor.
Can someone else represent me during the audit?
Throughout the audit process, you may represent yourself, have an authorized representative present with you, or have an authorized representative act on your behalf. For an authorized representative to act on your behalf, you must sign a Power of Attorney and Declaration of Representative (Alabama Form 2848A)which designates you as the taxpayer, identifies the type of tax or assessment, identifies your authorized representative, and states the effective date of representation. To obtain a Power of Attorney and Declaration of Representative (Alabama Form 2848A), you may download the form at https://www.revenue.alabama.gov/forms/power-of-attorney-and-declaration-of-representative/,or contact the taxpayer service center nearest you.
What happens after the audit?
After your audit, you will receive a notice through the mail. The notice will indicate if your return was accepted as filed or if changes were made to your return.
If your return was adjusted, additional information can be provided at this time. Please contact your auditor about anything that is unclear to you.
What if I do not agree with the adjustments?
If you do not agree with ALDOR’s decision in your case, you may appeal this decision by filing a written petition for review to request a conference on your case. You must file the petition for review within30 days of the date of mailing or personal service of the preliminary assessment, whichever occurs first. A petition for review form is included in your preliminary assessment. You may also download a petition for review format https://www.revenue.alabama.gov/wp-content/uploads/2021/10/BL-PR-2.pdf orcontact the taxpayer service center nearest you to request a form.
ALDOR will docket your petition and mail a letter of acknowledgement indicating your petition has been received. If your petition requests a conference, you will be allowed a specified period of time to contact the Hearings Officer to schedule a conference.
During this conference you will have the opportunity to discuss your case with a designated hearing officer from the tax division who actions you are contesting. This conference will allow both you and ALDOR to present each side of the issue and to review any additional information being presented.
Based on the outcome of this conference, ALDOR will either cancel, change, or affirm its previous action. If you do not timely file your petition for review, or ALDOR determines from the conference that the preliminary assessment is due to be upheld in whole or in part, then ALDOR will enter a final assessment.
If the preliminary assessment is not withdrawn or made final by ALDOR within five years from the date of entry, the preliminary assessment may be appealed to the Alabama Tax Tribunal or circuit court. If a final assessment is entered, you will be notified in writing and advised that you may appeal to either the Alabama Tax Tribunal or to circuit court.