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Alaska DOR Supports Governor's COVID-19 Economic Stabilization Plan

Dated Apr. 10, 2020

SUMMARY BY TAX ANALYSTS

The Alaska Department of Revenue, Tax Division, announced that it will make changes to its compliance enforcement to support the governor's COVID-19 economic stabilization plan, including suspending payment plan installments and liens and levies that fall between March 31 and July 15.

The Department of Revenue — Tax Division announces changes in support of the Governor's COVID‐19 Economic Stabilization Plan; effort temporarily adjusts, suspends key compliance programs

ALASKA — To help people facing the challenges of COVID‐19 issues, the State of Alaska, Department of Revenue — Tax Division announces today a series of steps to assist taxpayers by providing relief on a variety of issues ranging from easing payment guidelines to postponing compliance actions as part of the Governor's COVID‐19 Economic Stabilization Plan.

The Tax Division has been diligently working to identify ways to provide some relief to our taxpayers. There is current legislation (Senate Bill 241) that was passed and is awaiting the Governor's signature, to extend the due dates for tax filings and payments for the majority of our state's tax programs. This legislation will become effective either the day after the Governor signs it, or April 10th, whichever date is earliest.

These new changes include issues ranging from postponing certain payments related to Payment Plans to collection and limiting certain enforcement actions. The Tax Division will be temporarily modifying the following activities through July 15, 2020. During this period, to the maximum extent possible, the Tax Division will avoid in‐person contacts. However, the Tax Division will continue to take steps where necessary to protect all applicable statutes of limitations.

Existing Payment Plan Agreements — For taxpayers under an existing Payment Plan, payments due between March 31, 2020 and July 15, 2020 are suspended. Taxpayers who are currently unable to comply with the terms of a Payment Plan Agreement, can suspend payments during this period if they prefer. Furthermore, the Tax Division will not default any Payment Plan Agreements during this period. By law, interest will continue to accrue on any unpaid balances.

New Payment Plan Agreements — The Tax Division reminds people unable to fully pay their state taxes that they can resolve outstanding liabilities by entering into a monthly payment plan agreement with the Tax Division. See tax.alaska.gov for further information.

Collection Activities — Liens and levies initiated by the Tax Division will be suspended during this period.

Automated Liens and Levies — New automatic, systemic liens and levies will be suspended during this period.

Appeals — Appeals employees will continue to work their cases. Although Appeals is not currently holding in‐person conferences with taxpayers, conferences may be held over the telephone or by videoconference. Taxpayers are encouraged to promptly respond to any outstanding requests for information for all cases by the Appeals Team.

Statute of Limitations — The Tax Division will continue to take steps where necessary to protect all applicable statutes of limitations. In instances where statute expirations might be jeopardized during this period, taxpayers are encouraged to cooperate in extending such statutes.

The Tax Division will continue to review ways that we can help support the Governor's COVID‐19 Economic Stabilization Plan. We recognize the economic impact that COVID‐19 has had on our customers and we want to help were we can. Although many of our employees are teleworking, we will continue to provide the same customer service that is important to us and the State of Alaska. This may include a longer period than normal for us to post payments into Revenue Online. We encourage our customers to set up electronic payments through Revenue Online to streamline the payment process. Here is the link to Revenue Online: https://online‐ tax.alaska.gov. We appreciate your patience and support.

If you have any questions on any aspects of this communication, please call the Tax Division at 907‐269‐6620.

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