The Alabama Department of Revenue is reminding taxpayers that an important deadline is right around the corner.
July 15 is the deadline for any Alabama taxpayer whose payment and filing deadline for state Individual Income Tax, Corporate Income Tax, Financial Institution Excise Tax (FIET) and Business Privilege Tax (BPT) was extended from its original due date by executive order on April 10. The extension applied to individual and corporate income tax, FIET and BPT returns and payments with a due date on or after April 1 but before July 15, including estimated payments due on April 15 and June 15. The extended deadline also applied to the filing and payment of Alabama income taxes by a pass-through entity on behalf of a nonresident, which was postponed from March 15 to July 15.
These extensions mirrored IRS actions taken in regard to federal income tax filing deadlines due to COVID-19. The IRS announced recently that it will not further postpone its filing and payment deadlines.
In Alabama, the corresponding extended deadline will expire on July 15, at which time deferred payments will be due in full. ALDOR reminds taxpayers that interest will begin to accrue for all payments that are not made by July 15. ALDOR will work with taxpayers on a case-by-case basis to determine whether late penalties may be waived due to business interruptions or economic hardship caused by the COVID-19 pandemic. Interest cannot be waived beyond the July 15 due date. Even if a return cannot be filed by July 15 for legitimate reasons, taxes due should still be paid by July 15.
Individuals who are unable to file 2019 income tax returns by July 15 will automatically be granted an extension to file through Oct. 15. 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 Oct. 15, as long as Form ET-8 is filed by July 15. For an entity filing or paying Alabama Fiduciary Tax, an extension to file will be granted through Sept. 30. All of these extension dates are for filing only, and any amount due must still be paid by July 15. (ALDOR)