Alabama Provides COVID-19 Sales Tax Relief
As COVID-19 (a.k.a. New Coronavirus) continues to spread and hold our businesses and economy hostage, State governments are starting to respond with much-needed relief by offering things like filing and payment deadline extensions for sales and use tax returns. In some cases, penalties and/or interest due to late payments are being waived as well.
To date, the Alabama Department of Revenue has issued the following taxpayer relief:
- Late payment penalties for state sales tax have been waived through June 1, 2020, for entities that fall into one of these buckets:
a. Retail businesses whose monthly retail sales during 2019 averaged $62,500 or less.
b. All taxpayers currently registered as engaging in NAICS Sector 72 business activities (this includes restaurants).
Note: This relief does not apply to interest, nor does it extend normal filing requirements. Rather, it allows taxpayers to file 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 for state lodgings taxes have been waived through June 1, 2020, for the same entities described in a. and b. above.
- State income tax filing and payment deadlines have been extended to July 15, 2020, for all taxpayers (No penalties or interest will be assessed regardless of the amount owed).
- Corporate income tax filing and payment deadlines have been extended to July 15, 2020.
- Financial Institution Excise Tax (FIET) filing and payment deadline has been extended to July 15, 2020.
- Business Privilege Tax (BPT) filing and payment deadline has been extended to July 15, 2020.
Be sure to check back frequently as we will add new information and updates as they become available. It is important for business owners, Alabama sales tax lawyers, CPA’s and other professionals to stay up to speed on this fluid situation. Also, reference the Alabama Department of Revenue website for the latest state tax guidance.
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