Alaska Back Taxes Resolution Guide & Help

The Alaska Department of Revenue Tax Division is responsible for collecting & enforcing Alaska taxes. When it comes to resolving Alaska tax problems, individuals and businesses must work directly with the Department of Revenue. Since Alaska is one of the few states with no State income tax and no sales tax, they take their other taxes very seriously. Failure to file or pay Alaska owed taxes can cause some serious consequences.

If you have fallen behind on business Alaska taxes, below are some of the consequences as well as resolutions that can be used to get back into compliance.

Employer Tax Penalties

Employers in the state of Alaska are subject to interest and penalties if they fail to file a report or submit payment of contributions on the specified due dates. Penalties differ depending on if they are being charged to a contributory employer or a reimbursable employer.

Contributory Employer Penalties

• Failure to file a contribution report: A penalty of 5% of the contributions due for each 30 day period or fraction of a 30 day period is charged after the due date. The maximum penalty is 25% of the contributions due to Alaska.
• Nonpayment of contributions: A penalty of $10 or 10% of contributions due, whichever is greater.
• Misappropriation of employee contribution: Penalty of 5x the employees’ share due, no less than $25.
• Past due interest on contributions: The amount in unpaid tax accrues interest at 12 % a year.

Reimbursable Employer Tax Penalties

• Failure to file a report: A late penalty of .1% of total reportable wages for each quarter for each 30 day period or fraction of the 30 day period for which the report is due.
• Past due interest on contributions: The amount unpaid accrues at 12% a year that begins 30 days after the quarterly billing is mailed to the employer.

Solutions for Dealing With Unpaid Alaska Employer Taxes

Depending upon the circumstances of the business, Alaska may offer some alternatives to paying the amount owed in full if paying the full amount would cause the business significant hardship which would hurt their future ability to operate.

Compromise of Contributions

Alaska may lower/compromise the amount owed on contributions, penalties, and interest if paying the amount in full would result in the insolvency of the employer or individual from whom the balance is owed. In order to work out a compromise, you must contact a local Unemployment Insurance (UI) Tax office (details below) or call their main number at (807) 465-2757 or toll-free at (888) 448-3527.

Waiver of Contributory Employer Penalties

There are circumstances where Alaska will waive penalties that have been charged to contributory employers if they have reasonable cause for not being in compliance with the tax laws. Reasonable cause may be one of the following:

• Delay with mail: You mailed on time but it didn’t arrive on time. You may need to show proof
• Bad information was given by the department: The penalties were caused by erroneous information received from the Alaska Unemployment Insurance office.
• Death or serious illness: It can be a serious illness or death of an employer or an immediate family member.
• Disaster: Natural disaster, fire, or any other destruction that could have caused loss of records or delayed the ability to file or pay on time.
• Delay caused by UI Tax: If a delay of the tax office caused your penalties

To get your penalties waived you must work directly with the State of Alaska by calling the number on the assessment notice or calling one of the offices mentioned below.

Unemployment Insurance Tax Appeals

Employers have the right to file for an appeal on an assessment, UI tax adjustment, and many other tax issues. 

Our Simple Tax Relief Process