(a) The department is authorized to require that every payment settlement entity, third party settlement organization, electronic payment facilitator, or other third party acting on behalf of a payment settlement entity, all as defined in Section 6050W of the Internal Revenue Code and referred to herein as a reporting entity, required to file information reports pursuant to that section , within 30 days of the filing due date, shall file with the department in such form and manner as prescribed by the department either a duplicate of all such information returns or a duplicate of such information returns related to taxpayers or participating payees, as defined in Section 6050W of the Internal Revenue Code, with an Alabama address. The department may require that such duplicate information returns be filed electronically.

(b) The information received by the department on a duplicate information return filed pursuant to this section shall be used only for taxes administered by the department.

(c) Any reporting entity failing to file a duplicate information return with the department on or before the prescribed date shall be subject to the following penalties:

(1) The first violation shall result in a written notice from the department. The notice shall advise the reporting entity of the non-compliance and the penalty for future non-compliance if the required duplicate information return is not filed within 30 days from the written notice as provided herein.

(2) The subsequent violation(s) shall result in a penalty not to exceed one-thousand dollars ($1,000) for each month or fraction of a month during which each failure continues.