COVID-19 Emergency Relief: Guidelines for Payment of Outstanding Sales and Lodgings Tax Liability


COVID-19 Emergency Relief:
Guidelines for Payment of Outstanding Sales and Lodgings Tax Liability

Pursuant to an Executive Order, the Department of Revenue waived the state sales tax late payment penalties for small retail businesses, whose monthly retail sales during the previous calendar year averaged $62,500 or less, and for taxpayers currently registered with the Department as engaging in NAICS Sector 72 business activities, including restaurants. By separate order, the Department waived the state transient occupancy tax (lodgings tax) late payment penalties for taxpayers currently registered with the Department. The relief was available to taxpayers in these categories who were unable to timely pay their February, March, and April 2020 sales or lodgings tax liabilities due to the COVID-19 public health emergency.

This relief did not waive or extend normal filing requirements. Instead, these taxpayers could elect to file their monthly sales or lodgings tax returns for the February, March, and April 2020 reporting periods without paying the state sales or lodgings tax liability reported as due.

After the expiration of this waiver on June 1, 2020, the guidelines below will apply to the payment of outstanding sales and lodgings tax liabilities for taxpayers that qualified for a waiver.

Please Note: Returns and payments for the May 2020 reporting period due on or before June 20, 2020, should be filed and paid as scheduled.

Payment guidelines for the February, March, or April 2020 reporting periods:

  • If you filed returns and paid your liabilities for all of these periods, no action is needed.
  • If you filed a return and elected to defer payment for one or more of these reporting periods, late payment penalties for these periods will be waived through June 1, 2020, at which time all outstanding liabilities, including accrued interest, will be due. However, the Department will work with taxpayers who elected to utilize the waiver program to develop workable payment plans as needed. Please contact us at 334-242-1490 to request a payment plan accommodation. Please note that, as a general rule, payment plans will be structured to ensure payment in full of all outstanding liabilities for these periods prior to the close of the State’s current fiscal year on September 30, 2020.
  • If you did not file a return or make a payment for one or more of these periods, late filing penalties will apply to these outstanding filing periods. Late payment penalties will be waived for the qualifying periods through June 1, 2020, at which time all outstanding liabilities, including accrued interest, are due. However, the Department will work with taxpayers to develop workable payment plans as needed. Please contact us at 334-242-1490 to request a payment plan accommodation. Please note that, as a general rule, payment plans will be structured to ensure payment in full of all outstanding liabilities for these periods prior to the close of the State’s current fiscal year on September 30, 2020.

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This communication is intended for the sole use of the individual or entity addressed above, and may contain information that is privileged and confidential under Section 40-2A-10, Code of Alabama 1975. If the reader of this communication is not the intended recipient, the reader is hereby notified that any disclosure of this communication is strictly prohibited under Section 40-2A-10, Code of Alabama 1975. If you have received this communication in error, notify the Alabama Department of Revenue immediately and destroy all versions-electronic, paper, or otherwise, of this communication.









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