This can be a reminder to all companies registered in Alabama for gross sales, rental, sellers use, lodgings, utility gross receipts, or simplified sellers use tax functions and who’re required underneath present legislation to acquire a corresponding license from the Alabama Division of Income (ADOR) that you’re now required to renew these licenses yearly starting November 1, 2020, in accordance with the Discover of Annual Renewal of Alabama Tax Licenses issued by the ADOR on October 1, 2020.
The ADOR has carried out this new course of pursuant to Alabama Administrative Rule 810-6-5-.01.01, which turned efficient February 2020.
The ADOR additionally issued a subsequent press launch on October 28, 2020 concerning this problem.
Starting November 1, 2020, every calendar yr a enterprise entity should apply for a brand new tax license, which shall be generated by the ADOR when the enterprise applies for renewal through the relevant annual renewal interval (November 1–December 31 of every yr). Thus, starting this yr, the tax licenses will solely be legitimate for one yr and should be renewed once more annually.
The brand new Discover was quietly issued by the ADOR, but it surely ought to not be ignored. Starting November 1, taxpayers could have two months (till December 31) to offer the relevant info to the ADOR and request renewal of any present tax licenses.
Companies can make the most of the My Alabama Taxes (MAT) portal/web site to confirm or replace their relevant enterprise info with a view to generate a brand new tax license for the upcoming yr.
The ADOR has additionally now printed an in depth set of Step by Step Directions for License Renewal to help impacted taxpayers with their respective tax license renewals through the MAT portal/web site.
As well as, the ADOR has printed FAQs addressing this problem.
In line with the ADOR’s Discover, the aim for such annual tax license renewals is in order that the ADOR can confirm the enterprise is constant to function in the identical enterprise entity sort for which the present tax license was issued. If the enterprise’ entity sort has modified, then the enterprise might want to apply for a brand new tax license.
If a tax license just isn’t renewed, the license will expire (and be canceled) after December 31 of that yr, and the enterprise will now not be capable to interact in transactions permitted underneath the earlier license (similar to using the tax license to make tax-exempt purchases for resale or rental functions).
The ADOR would require the next info to be reviewed and/or up to date for functions of the tax license renewal (and won’t renew the enterprise’ tax license till the required info has been offered to the ADOR):
Present authorized title – should be reviewed
Proprietor/officer/member info – should be reviewed and/or up to date
Telephone quantity(s) – should be reviewed and/or up to date
Social safety safety numbers/FEINs – should be reviewed
Location handle(es) together with d/b/a names for every location – should be reviewed and/or up to date
To reiterate, companies shall be required to resume Alabama tax licenses for the next tax varieties: