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Alabama DOR Offers Small Businesses Sales Tax Relief

Dated Mar. 20, 2020

SUMMARY BY TAX ANALYSTS

In response to disruptions caused by COVID-19, the Alabama Department of Revenue announced that businesses with monthly retail sales of $62,500 or less may file their monthly sales tax returns for the months of February, March, and April 2020 without paying the sales tax as ordered by the commissioner of revenue; late penalties will be waived through June 1, 2020.

Larger businesses may also qualify for relief on a case-by-case basis.

ADOR Extends Relief to Small Businesses

MONTGOMERY, March 18, 2020 — Effective immediately, the Department of Revenue is extending relief to small retail businesses that are unable to timely pay their February, March, and April sales tax liabilities.

Small businesses whose monthly retail sales during the previous calendar year averaged $62,500 or less may file their monthly sales tax returns for the February, March, and April 2020 reporting periods without paying the state sales tax reported as due. Late payment penalties will be waived for these taxpayers through June 1, 2020.

Similar sales tax relief may be available on a case-by-case basis to other businesses significantly impacted by the coronavirus (COVID-19) and the preventative measures being taken to limit its spread in Alabama.

For more information about this small business tax relief measure, taxpayers are encouraged to visit the Department of Revenue's COVID-19 Updates page or call the Department's Sales and Use Tax Division at 334-242-1490.

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