Code of Alabama
Article 4 - Additions to Tax and Penalties.
Section 40-29-75 - False Information With Respect to Withholding.

(a) Civil penalty. In addition to any criminal penalty provided by law, if:
(1) Any individual makes a statement under Section 40-18-73 which results in a decrease in the amounts deducted and withheld under Section 40-18-71; and
(2) As of the time such statement was made, there was no reasonable basis for such statement, such individual shall pay a penalty of $500 for such statement.
(b) Exception. The commissioner may waive (in whole or in part) the penalty imposed under subsection (a) if the taxes imposed with respect to the individual under Chapter 18 of this title for the taxable year are equal to or less than the sum of:
(1) The credits against such taxes allowed by Sections 40-18-21, 40-18-120 and 40-18-121; and
(2) The payments of estimated tax which are considered payments on account of such taxes.