Governor Ivey signs bill to waive interest on late payments for 2020 Extended Tax Filings

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FILE – This Wednesday, Feb. 13, 2019 file photo shows part of a 1040 federal tax form printed from the Internal Revenue Service website. On Friday, Aug. 21, 2020, The Associated Press reported on stories circulating online incorrectly asserting that Democratic presidential candidate Joe Biden’s tax rate on a family making $75,000 dollars a year would go from 12% to 25%. A current federal tax rate of 12% applies to families making up to $80,000, or individuals making up to $40,000. That would still apply under Biden, who has vowed publicly not to raise taxes on anyone making less than $400,000. (Associated Press)

MONTGOMERY, Ala. – The governor of Alabama signed a bill to waive interest on late payments on individual 2020 income taxes.

Governor Kay Ivey signed SB 352.

Earlier in 2021, the U.S. Treasury Department and IRS extended the federal filing and payment date from April 15 to May 17. Alabama then automatically extended the tax filing deadline to coincide with the federal deadline.

“While things are getting better, COVID-19 has, once again, interrupted another tax filing season,” Governor Ivey said. “In normal years, April 15 is traditionally Tax Day, but the federal government and the State of Alabama have extended tax filing and payments until May 17. I’m pleased to sign SB 352 to ensure that the good people of Alabama will not be dinged with interest fees for filing their taxes by May 17.”

The release says that the Alabama Department of Revenue (ADOR) could administratively waive penalties for late payments but not interest on payments after April 15. SB 352, by Sen. Arthur Orr (R – Decatur), will automatically extend the due date for individuals to pay their 2020 state income taxes to May 17 — eliminating the accrual of interest before this date.

“I am grateful for my colleagues and Governor Ivey acting expeditiously on this issue to make certain Alabama taxpayers don’t pay any more in taxes than they have to  pay in a filing season made exceedingly difficult by COVID,” Sen. Orr said.

According to the release, SB 352 will allow the ADOR to adjust filing and payment deadlines in the future within a declared state of emergency without further legislative action. SB 352 was carried in the House of Representatives by Rep. Chris Pringle (R-Mobile) and passed 97-0.

“Moving forward, if we are in a declared emergency, the Alabama Department of Revenue can quickly and efficiently extend the deadline to best serve the people of our state,” Rep. Pringle said. “I appreciate the governor for quickly signing this bill into law.”

SB 352 is effective immediately upon approval of the governor. Interest will not begin accruing on individual tax filing payments until after May 17, 2021, according to the release.

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