Accountants typically bill their clients based on time that is spent preparing the return. The more time that is spent on collecting, sorting and analyzing tax documents, the more costly the process becomes. What can the client do to make tax preparation easier and ultimately less costly?
Beginning Sunday, November 1, 2020, taxpayers will be required to renew the State of Alabama Tax License annually.
If you have one of the licenses listed below you have from November 1, 2020 to December 31, 2020, to renew that license. If you do not renew your license by December 31, 2020, it will expire. One of the consequences of not renewing your license is the inability to make tax-exempt purchases for resale purchases.
Here is a list of the tax types that are required to renew the State of Alabama Tax License each year:
- Sales Tax
- Rental Tax
- Sellers Use Tax
- Lodgings Tax
- Utility Gross Receipts Tax
- Simplified Sellers Use Tax
The good news is that you can do this online via the My Alabama Taxes (MAT) website. The following information will be required to be reviewed and/or updated:
- Current Legal Name – must be reviewed
- Owner/Officer/Member Information – must be reviewed and/or updated
- Phone number(s) – must be reviewed and/or updated
- Social security numbers/FEIN’s – must be reviewed
- Location address(es) including d/b/a’s for each location – must be reviewed and/or updated
- Main address must be reviewed
- Location address(es) must be reviewed and/or updated
Each year, verification that the business is continuing to operate in the same business entity type for which the existing license was issued will need to be completed. You will need to apply for a new license if the entity type changed (e.g. original entity type of Sole Proprietorship changes to Corporation or Multi-member LLC).
The renewal process will be completed on an annual basis in order to generate a new license for each calendar year. Therefore, if the license is not renewed pursuant to Section 40-23-6.1, Code of Alabama 1975, as amended, the State of Alabama Tax License previously issued to your business will be canceled. Please be advised that your Alabama Tax License shall not be renewed until the required information has been provided to the Department.
For more information, visit the step-by-step instructions and FAQ pages. Any taxpayers who need help renewing licenses can contact your Aldridge, Borden & Co. advisor for help. If you do not have an advisor you can use our contact form or call us at (334) 518-6640.