UPDATED: March 27, 2020 at 3:17 p.m.
The Alabama Department of Revenue is monitoring developments pertaining to the Coronavirus (COVID-19) and is following guidance from federal and state officials. We understand you may have some concerns and uncertainty pertaining to COVID-19 and the Department is committed to being responsive to your needs.
The Department is encouraging all taxpayers to conduct their business with us through our online services. Take advantage of our website for information and answers to your questions; use My Alabama Taxes (MAT) to file and pay taxes; or call 334-242-1170 to receive additional assistance.
Out of an abundance of caution for your health and wellbeing, as well as our employees, we are asking taxpayers to limit in-person visits to the taxpayer service centers at this time. If you must make a payment in person, these payments can be made at one of our nine Taxpayer Service Centers. All other assistance will be provided remotely via phone or email. Click here for Taxpayer Service Center locations and contact information.
At this time, title applications from designated agents and salvage inspection applications will not be received in-person at the Montgomery Taxpayer Service Center. These applications must be mailed to the Motor Vehicle Division. In addition, all other motor vehicle title, registration, IFTA and IRP transactions must be submitted electronically. For additional questions please contact the Motor Vehicle Division at 334-242-9000.
As of March 18, 2020, the state and state-administered county cigarette stamps issued by the Business and License Tax Division may no longer be picked up at the Gordon Persons Building until further notice. All orders will be shipped/delivered via Federal Express (FedEx). If you do not currently have a FedEx account, please set up one and provide the Business and License Tax Division with the required account information. For additional questions please contact the Business and License Tax Division’s Tobacco Tax Section at 334-242-9627.
COVID-19 Related Relief for Taxpayers
On March 13, 2020, Governor Ivey declared a state of emergency in response to COVID-19, thereby allowing the Department more flexibility in working with impacted taxpayers. To date, the Department has issued the following taxpayer relief orders:
- Governor Ivey Signs Proclamation Delaying State Tax Filings
- Order Extending Deadline for Filing and Payment of State Income Tax, FIET, and BPT (Updated March 23 at 2:54 p.m.)
- Composite Returns and Payments
- Temporary Suspension of International Registration Plan (IRP) and International Fuel Tax Agreement (IFTA) Requirements
- March 2020 Motor Vehicle Registrations and Property Tax Payments and Penalties Extension
- Late Payment Penalties Waived for Small Retail Businesses Sales Tax Liabilities (UPDATED MARCH 18 AT 1:41 P.M.)
- Late Payment Penalties Waived for Sales Tax Liabilities of Restaurants and Other Food Service Providers
- Late Payment Penalties Waived for State Transient Occupancy Tax (lodgings tax) Liabilities
Sales and Lodgings Tax Relief
Effective immediately, the Department of Revenue is waiving state sales tax late payment penalties both for small retail businesses, whose monthly retail sales during the previous calendar year averaged $62,500 or less, and taxpayers currently registered with the Department as engaging in NAICS Sector 72 business activities, which includes restaurants. The Department is also waiving state late payment penalties for lodgings taxes. The relief applies to state sales and lodgings taxpayers who are unable to timely pay their February, March, and April 2020 sales and lodgings tax liabilities. This relief does not waive or extend normal filing requirements. Instead, these taxpayers may file their monthly sales and lodgings tax returns for the February, March, and April 2020 reporting periods without paying the state sales and lodgings tax reported as due. Late payment penalties will be waived for these taxpayers through June 1, 2020. Please note, this relief applies only to state sales and lodgings tax liabilities.
Businesses included in NAICS Sector 72 are those preparing meals, snacks, and beverages for immediate consumption. A complete list of the business activities that fall within this sector can be viewed at NAICS Sector 72 – Accommodation and Food Services.
After the expiration of this temporary waiver, the Department will work with taxpayers who elected to utilize the waiver program to development workable payment plans that will allow taxpayers to pay outstanding liabilities for February, March, and April 2020, while navigating any other impacts of the coronavirus on their businesses.
This relief is automatic for small retailers and Sector 72 businesses who file their February, March, and April 2020 state sales tax returns. Similar sales tax relief may be available on a case-by-case basis to other businesses significantly impacted by the coronavirus (COVID-19) and the preventative measures being taken to limit its spread in Alabama. These taxpayers may contact the Department’s Sales and Use Division at 334-242-1490 to request relief.
- Do I still need to file a return? Yes.
- Does this relief apply to all state taxes? No, it only applies to state sales and lodgings taxes.
- Does this relief apply to local (municipal and county) sales and lodgings taxes? No, this relief only applies to state sales and lodgings taxes. Please contact non-state administered localities directly to see if they are offering similar relief. Contact for non-state administered localities is available here. Requests for relief for state-administered localities will be reviewed individually and can be submitted to firstname.lastname@example.org.
- Does this relief apply to interest? No.
Extension of Filing and Payment Deadline for Income Tax, Financial Institution Excise Tax, and Business Privilege Tax
On March 23, Governor Kay Ivey announced that the state income tax filing due date is extended from April 15, 2020, to July 15, 2020.Taxpayers can also defer state income tax payments due on April 15, 2020, to July 15, 2020, without penalties and interest, regardless of the amount owed. This deferment applies to all taxpayers, including individuals, trusts and estates, corporations and other non-corporate tax filers. The Commissioner of Revenue’s executive order implementing the Governor’s emergency proclamation can be found here.
Other taxes included in the deadline extension are corporate income tax, the Financial Institution Excise Tax (FIET), and the Business Privilege Tax (BPT).
Taxpayers do not need to file any additional forms or call the Alabama Department of Revenue to qualify for this automatic state tax filing and payment relief. Individual taxpayers who need additional time to file beyond the July 15 deadline can request a filing extension through the usual methods.
“Even considering the extended filing deadline, we urge taxpayers who are owed refunds to file as soon as possible and file electronically,” said Revenue Commissioner Vernon Barnett. “Filing electronically with direct deposit is the quickest way to get refunds. Although the Department is practicing prudent working conditions with our staff during this period, we will continue with mission-critical operations to support Alabama’s citizens. We ask for your support, understanding and patience.”
By separate order, the Commissioner extended the due date for pass-through entities to file composite returns and make composite payments on behalf of their non-resident members.
In the Order Extending Deadline for Filing and Payment of State Income Tax, Financial Institution Excise Tax, and Business Privilege Tax, the Alabama Department of Revenue announced special state income tax return filing and payment relief in response to the ongoing Coronavirus Disease 2019 (COVID-19) emergency. Below are answers to frequently asked questions related to the relief provided in the Order. These questions and answers will be updated periodically and are designed to be a flexible tool to communicate information to taxpayers and tax professionals in this changing environment. The answers to these questions provide responses to general inquiries and are not citable as legal authority.
- Who is eligible for relief under the Order? Any person with a state Individual Income Tax or Corporate Income Tax (collectively, State Income Tax) payment, a Financial Institution Excise Tax (FIET) payment, or a Business Privilege Tax (BPT) payment due on April 15, 2020, or a State Income Tax, FIET, or BPT return due April 15, 2020, is affected by the COVID-19 pandemic for purposes of the relief described in this Order (Affected Taxpayer). The term “person” includes any individual, association, estate, trust, partnership, corporation, or other entity of any kind, as provided in §40-1-1(8), Code of Alabama 1975.
- Do I have to be sick, quarantined, or have any other impact from COVID-19 to qualify for payment relief? No, you do not have to be sick, or quarantined, or have any other impact from COVID-19 to qualify for relief under the Order. You only need to have an Alabama income tax return or payment due on April 15, 2020, as described above.
- What are the form numbers of the specific Alabama income tax returns whose filing deadlines have been postponed to July 15, under the Order? The Order postpones the filing and payment of Alabama income taxes and Business Privilege Tax reported from April 15th to July 15th on the following forms:
- Forms 40 (Individual Income Tax Return), 40A (Individual Income Tax Return-Short Form), 40NR (Individual Income Tax Return – Non-Residents), 40EZ (Alabama Simplified Individual Income Tax Return), 40ES (Individual Estimated Tax Form)
- Forms 20C (Alabama Corporate Income Tax Return), 20C-C (Alabama Consolidated Corporate Income Tax Return)
- Forms ET-1 (Alabama Financial Institution Excise Tax Return), ET-1C (Alabama Consolidated Financial Institution Excise Tax Return), Form ET-8 (Extension to File Financial Institution Excise Tax Return – e-filed through My Alabama Taxes)
- Form 41 (Fiduciary Income Tax Return)
- Forms BPT-IN (Alabama Business Privilege Tax Initial Privilege Tax Return), CPT (Alabama Business Privilege Tax and Annual Report for C-Corporations and Other Specified Entities), PPT (Alabama Business Privilege Tax and Annual Report for Pass-Through Entities Only)
By separate order, the Department has postponed the filing and payment of Alabama income taxes by a pass-through entity on behalf of a nonresident from March 15th to July 15th on the following form:
- Form PTE-C (Nonresident Composite Payment Return)
4. I am a fiscal year filer. My Alabama income tax return for fiscal year 2019 is due on April 15, 2020. Am I an “Affected Taxpayer” eligible for relief under the Order? Yes, the relief applies to Alabama income tax returns and payments with respect to an Affected Taxpayer’s 2019 taxable year and postpones 2019 return filings and payments due on April 15, 2020 to July 15, 2020. If your Alabama income tax return for your fiscal year ending during 2019 is due on April 15, 2020, whether that is the original due date or the extended due date, your due date for filing is postponed to July 15, 2020. Payment relief only applies if the original payment due date is April 15, 2020.
5. What about businesses or other entities that have a filing due dates on May 15, June 15, or some other date besides April 15. Have their filing and payment deadlines been postponed? The Order applies to Alabama income tax returns and payments due on April 15, 2020, for the 2019 tax year and estimated payments for the 2020 tax year. For payments and returns due on other dates, the Department will consider requests for relief, in the form of penalty waivers and filing extensions, on a case-by-case basis. Please see https://revenue.alabama.gov/contact/ for the appropriate contact information for the tax type for which you are seeking relief.
6. Does the relief provided in the Order apply to estimated payments for a corporation due on April 15, 2020? Yes, for any taxpayer whose Alabama income tax return filing or payment deadline has been postponed from April 15 to July 15, 2020, the due date for Extension payments and Estimate payments has been postponed to July 15, 2020.
7. Does the relief provided in the Order apply to the filing of information returns? No.
8. Does the relief provided in the Order apply to the filing of withholding tax forms and or payments? No.
Filing and paying your 2019 Alabama income taxes and your first quarter 2020 Alabama estimated income taxes.
- I haven’t filed my 2019 income tax return that would have been due on April 15 yet, but I expect to file it by July 15th. What do I need to do? Nothing, except file and pay any tax due with your return by July 15. You don’t need to file any additional forms or call the Alabama Department of Revenue to qualify for this automatic tax filing and payment relief. If you expect a refund, you are encouraged to file your return as soon as you can so that you can receive your refund. Filing electronically with direct deposit is the quickest way to get refunds.
- What if I am unable to file my 2019 income tax return that would have been due on April 15 by July 15, 2020? If you are an individual you will automatically be granted an extension to file through October 15, 2020. For corporations, a corporation or an Alabama affiliated group is granted an automatic extension to file its Alabama corporate income tax return consistent with the extension allowed for the taxpayer’s corresponding federal income tax return. For financial institutions, an extension to file will be granted through October 15, 2020, as long as Form ET-8 is filed by July 15, 2020. For an entity filing or paying Alabama Fiduciary Tax an extension to file will be granted through September 30, 2020. Note: All of these extension dates are for filing only and any amount due must still be paid by July 15th.
- What if I am unable to file my 2020 Business Privilege Tax return by July 15, 2020? For an entity filing or paying Alabama Business Privilege Tax an extension to file will be granted through September 15, 2020 for Form PPT and October 15, 2020 for Form CPT. Note: This extension date is for filing only and any amount due must still be paid by July 15th.
- What if I am unable to file my 2019 composite return for nonresident owners/partners by July 15, 2020? For a pass-through entity making payments on behalf of non-residents on a composite return, Form PTE-C, an extension to file will be granted through September 15, 2020. Note: This extension date is for filing only and any amount due must still be paid by July 15th.
- I have already filed my 2019 income tax return that would have been due on April 15 and I owe taxes, but I haven’t paid yet. What do I need to do to avoid interest and penalties? To avoid interest and penalties, pay your taxes in full by July 15, 2020. Interest and penalties will begin to be charged after July 15 for any amount remaining unpaid.
- I have already filed my 2019 income tax return that would have been due on April 15 and scheduled a payment of taxes for April 15, 2020. Will this payment be automatically rescheduled to July 15, 2020? If you scheduled a payment by credit card or debit card, contact the card processor to cancel the card payment. If the payment was scheduled through My Alabama Taxes (MAT), you may be able to modify or cancel your scheduled payment by visiting the following website: https://myalabamataxes.alabama.gov/_/. If the extension or estimate payment was scheduled through Alabama Interactive, you can log back in to cancel your payment. At this time the payment date cannot be updated past April 15th, we are working with Alabama Interactive to update the system to allow the Extension and Estimate payments to be rescheduled to July 15th. The department is actively working on a solution for payments submitted with returns e-filed through a third-party software vendor. These FAQs will be updated as soon as the solution is available, please check back periodically for more information.
- I am a pass-through entity. What if I file an informational return and taxes are due for my nonresident owners or members on March 15, 2020? Is the composite income tax return and payment postponed until July 15th? Yes, any pass-through entity required to file on March 15, 2020, a composite income tax return and remit payments pursuant to §40-18-24.2, Code of Alabama 1975, on behalf of its non-resident members is affected by the COVID-19 pandemic (Affected Taxpayer). The order granting this relief can be accessed here. For these Affected Taxpayers, the due date of March 15, 2020, for filing a composite income tax return and making payments on behalf of its non-resident members is automatically postponed to July 15, 2020. There is no limitation on the amount of the payments that may be postponed. This relief is available solely with respect to composite payments due to be made and composite returns due to be filed on March 15, 2020, by pass-through entities pursuant to §40-18-24.2.
Click here for questions regarding your federal income tax returns.
Other assistance may be available on a case-by-case basis to individuals and businesses that cannot file their tax returns on time due to the COVID-19 outbreak by contacting the Department at the numbers below.
Helpful Contact Information:
- Individual Income Tax: 334-353-0602
- Corporate Income Tax: 334-242-1200
- Pass-through Entities: 334-242-1033
- Sales and Use Tax: 334-242-1490
- Business Privilege Tax: 334-353-7923
- Withholding Tax: 334-242-1300
Internal Revenue Service (IRS)
World Health Organization
Centers for Disease Control and Prevention (CDC)
Alabama Department of Public Health
Alabama Emergency Management Agency
Governor Ivey’s Website