Section 24-11-5 - Account Holder Responsibilities(a) The account holder shall do all of the following: (1) Not use funds held in a first-time and second chance home buyer savings account to pay expenses of administering the account, except that a service or other account fee may be deducted from the account by the financial institution in which the account is held.(2) Submit the following to the Department of Revenue with the account holder's Alabama income tax return:a. Detailed information, in a form prescribed by the Department of Revenue, regarding the first-time and second chance home buyer savings account, including a list of transactions for the account during the tax year.b. Form 1099 issued by the financial institution for the account.(3) Submit to the department, upon a withdrawal of funds from a first-time and second chance home buyer savings account, a detailed account of the eligible costs toward which the account funds were applied and a statement of the amount of funds remaining in the account, if any. If upon withdrawal of funds from the first-time and second chance home buyer savings account, the account holder fails to provide the department with the detailed account of the eligible costs towards which the account funds were applied, the entire account's funds, including the interest and other income on principal, shall be subject to the penalties listed under Section 24-11-8.(b) Failure to submit the documentation required under subsection (a) on an annual basis with the filing of the Alabama income tax return will result in the automatic denial of the deduction and exclusion.Ala. Code § 24-11-5 (1975)
Amended by Act 2022-223,§ 1, eff. 4/4/2022.Added by Act 2018-467,§ 5, eff. 3/29/2018.