• COVID 19 Related Relief for Taxpayers

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    March 18, 2020

    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.

    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:

    Sales Tax Relief for Small Retail Businesses

    Effectively immediately, the Department of Revenue is extending relief to small retail businesses that are unable to timely pay their February, March, and April 2020 state sales tax liabilities. Small businesses whose monthly retail sales during the previous calendar year averaged $62,500 or less may file their monthly sales tax returns for the February, March, and April 2020 reporting periods without paying the state sales tax reported as due. Late payment penalties will be waived for these taxpayers through June 1, 2020.

    After the expiration of this temporary waiver, the Department will work with taxpayers electing 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 filing 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.

    Other Potential Relief for Taxpayers

    It is expected that the IRS will soon announce extensions of deadlines for filing federal income tax returns.  The Department plans to mirror these return filing extensions as appropriate and enter corresponding taxpayer relief orders. Please monitor the Department’s Newsroom for updates.

    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

    Additional Resources:

    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

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