• Sun. May 9th, 2021

Alabama Governor Signs SB 352 to Waive Interest on Late Payments

Alabama Governor Signs SB 352 to Waive Interest on Late Payments

MONTGOMERYAL (STL.News) Governor Kay Ivey  has signed SB 352 to waive interest on late payments on individual 2020 income taxes. Earlier this year, the U.S. Treasury Department and IRS extended the federal filing and payment date from April 15 to May 17.  Alabama 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 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.

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.

Maryam Shah

Maryam Shah

Maryam Shah is a teacher, mother, and wife. She is dedicated to publishing news provided by the US Department of State, State Governors, and more. She constantly monitors the web for the latest news updates, quickly publishing stories to help keep the public informed.