Alabama Tax Relief- Hurricane Zeta

Posted on January 07, 2021

Who is impacted and what are the Benefits?

The Alabama Department of Revenue announced January 5, 2021 that tax relief is available for businesses and individuals residing in 7 different Alabama counties if they were impacted by Hurricane Zeta. These are areas identified by the Federal government as disaster areas and include the following counties: Clarke, Dallas, Marengo, Mobile, Perry, Washington, and Wilcox. Qualifying taxpayers will be granted a tax filing extension and must file their tax returns by March 1, 2021. The Alabama Department of Revenue is also offering penalty relief for tax returns filed by this deadline. This can mean significant savings in late filing penalties which would normally be imposed on taxpayers for late filed returns.  

It is also important to note that the Alabama Department of Revenue has indicated there is an opportunity for tax relief for taxpayers who are not located in the above designated disaster areas. Businesses and individuals who were not able to file timely due to Hurricane Zeta weather related issues, may be eligible to request a waiver of late-filing and late-payment penalties. Specific documentation must be provided to support these requests. Additional details on what documentation may be required can be obtained by contacting the Alabama Department of Revenue.

What Periods and Tax Types are Covered?

The tax types covered by this tax relief include Individual Income Tax, Corporate Income Tax, Pass-through Entities, Business Privilege Tax, and Withholding Tax. It applies to tax returns due on or after October 28, 2020, and before March 1, 2021.

How to Apply?

To request a tax filing extension, taxpayers need to contact the Alabama Department of Revenue via phone or ask a question online after logging into the My Alabama Tax (MAT) website.

A penalty waiver form can be obtained online at the Alabama Department of Revenue website (https://revenue.alabama.gov/wp-content/uploads/2020/09/fpwr0920.pdf.). Completed forms must be sent to the Income Tax Administration Division at the listed address on the form.

Tips for the Taxpayer

It is important that taxpayers review state websites where they do business, for any tax relief opportunities offered to areas affected by natural disasters, pandemics and other issues. States will frequently offer waivers for late filing, penalties and interest where reasonable cause can be shown for late filed tax returns. Significant savings can be realized by businesses who identify these tax relief notices in areas when they are located.

Reviewing new tax bulletins as they are released, in the states in which your organization conducts business, is a best practice. You may also wish to consult a tax professional for clarity and expertise.

How Can We Help?

Allyn’s tax team is staffed with seasoned tax professionals experienced in all aspects of Federal, multi-state and local tax compliance and consulting for large US and global corporations. We use that experience to your advantage.

Allyn has significant experience assisting businesses with reviews of their sales and purchases, tax relief applications, nexus, and registrations. As tax laws change, we can use our experience to help your business improve compliance, minimize costs, reduce liabilities, and increase profits.

We can help your business maintain compliance with federal and state tax responsibilities and put procedures in place to ensure future streamlining of processes and increased data accuracy for tax purposes.

Contact us and we can provide a customized cost-effective solution to meet your company’s needs. For further information on Allyn Tax services, please contact: tax@allynintl.com.

For More Information

If you are interested in learning more about this topic or other tax topics, please visit our Tax Publications under News & Publications at www.allynintl.com.

Contributor: Sabrina Miller


About Allyn International

Allyn International is dedicated to providing high quality, customer centric services and solutions for the global marketplace. Allyn's core products include transportation management, logistics sourcing, freight forwarding, supply chain consulting, tax management and global trade compliance. Allyn clients range from small local businesses to Fortune 500 firms. Allyn conducts business in more than 20 languages and has extensive experience in both developed and emerging markets. Highly trained experts are positioned throughout North and South America, Europe and Asia. Allyn’s regional headquarters are strategically located in Fort Myers, Florida, U.S.A., Shanghai, P.R. China, Prague, Czech Republic, and Dubai, U.A.E. For more information, visit www.allynintl.com.