How to File an Alabama Tax Amendment

Alabama State Taxes
amend Alabama taxes

Alabama
"The Heart of Dixie"

An Alabama State Tax Return Amendment needs to be filed - mail in only - within 3 years of the filing deadline  of the original tax return tax year, or 2 years from the time when taxes were paid (whichever is later). For example, if you needed to amend an accepted 2018 State Tax Return you would have to file - mail in only - your tax amendment by April 15, 2022. In Alabama, there is no separate Tax Amendment Form. In order to file an amendment, you essentially create a new Tax Return via Form 40 - just make sure you indicate on top that you are filing an amendment. Make the necessary changes and include any Schedules (A, B, C, CR & DC, E, or F) that were also changed and attach them to Form 40 when you mail it in.  

Currently, you can not complete Form 40 on eFile.com. However, if you also need to file an IRS Tax Amendment via Form 1040X you can do this on eFile.com at no charge. If you e-Filed your 2018 return on eFile.com sign in to your account, click on Federal Taxes and Review and I'd like to see all federal forms. In the search box enter 1040X and complete, download, print, sign and mail in the form (the address is on the form). You can also not eFile Form 1040X at this point.

Here's how to amend, change or correct your Alabama state tax return: 

  1. Download and complete the Alabama Tax Amendment Form 40.
  2. Print, complete, sign and mail Form 40 to one of the following addresses.
  3. Check the status of your Alabama Amended Tax Return, or call the Alabama Department of Revenue at:  334-242-1170.

Alabama Tax Amendment Forms by Tax Year

Complete Form 40 for the Tax Year you wish to amend a return for. On Form 40 indicate that it's an amended return. Then, complete, print and sign it, and mail it to the Alabama Department of Revenue.

Form (Tax Year)
Description
Alabama Individual Income Tax Return: Residents and Part Year Residents
Alabama Individual Income Tax Return: Residents and Part Year Residents
Alabama Individual Income Tax Return: Residents and Part-Year Residents
Alabama Individual Income Tax Return: Residents and Part-Year Residents
Alabama Individual Income Tax Return: Residents and Part-Year Residents
Alabama Individual Income Tax Return: Residents and Part-Year Residents
Alabama Individual Income Tax Return: Residents and Part-Year Residents

Late Filing, Late Tax Payment Penalties, Interest, Fees

  • The State of Alabama assesses a number of penalties for taxpayers that violate the rules. The tax penalties include a failure to file penalty, a failure to pay penalty, underpayment due to negligence penalty, underpayment due to fraud penalty, frivolous return penalty and a frivolous appeal penalty. A failure to file penalty is imposed when the taxpayer fails to file the tax return by the specified deadline and amounts to 10% of the tax due, or $50, whichever is greater. A failure to pay penalty is assessed if the taxpayer doesn't pay the tax after 30 days past the deadline, and amounts to 1% per month but will not exceed 25% of the tax due. An underpayment due to negligence penalty is assessed when the taxpayer fails to reasonably comply with Section 40 if the Alabama Code, also known as the Alabama Tax Code, and amounts to 5% of the tax due. The underpayment due to fraud penalty is assessed when it is determined that the underpayment of the tax due was done fraudulently, and amounts to 50% of the underpaid tax. A frivolous return penalty amounts to as much as $250. A frivolous appeal penalty is imposed when it's determined that the appeal was filed with the purpose of hindering the collection of a tax, and amounts to $250 or 25% of the tax disputed in the appeal, whichever is greater. The Alabama Department of Revenue calculates interest on both unpaid tax and over-payment made by the taxpayer. It is accrued on a quarterly basis.

  • The Federal or IRS late filing, late tax payment penalties can be estimated via the eFile.com PENALTYuctor tool.

 

Quarterly Interest Rates

The following formula is used to calculate the interest rates below: (Annual Interest rate/365)x Number of Days Late x Tax Due

Year
Rate
2012
3%
2013
3%
2014
3%
2015
3%
2016
3% (Q1); 4% (Q2-Q4)
2017
4%
2018
4% (Q1); 5% (Q2-Q4)
2019
6%

Tax Return, Amendment Information

Information
Description
Alabama Mailing Addresses, Phone Numbers
Where is Your State Refund, Amendment?
Prepare and File Only Your State Return on eFile.com
Check the Status of Your AL Tax Refund on the State Revenue Website
Find Instructions on Filing a State Extension
General Information on Alabama State Income Tax
Prepare, File Your Federal Amended Return