Archive for the ‘Alabama’ Category

IRS Extends California (and Alabama and Georgia) Disaster Areas to October 16th from May 15th

Friday, February 24th, 2023

The IRS announced today that most California taxpayers (most of the state is in a disaster zone from flooding in January) now have until October 16th to file any tax returns.  This also means that impacted taxpayers have until October 16th to make 2022 contributions for IRAs and HSAs.  Additionally, 4th quarter 2022 and 1st and 2nd quarter 2023 estimated payments are now due on October 16th.  California’s Franchise Tax Board normally conforms to all federal disaster extensions; I expect to see confirmation from the FTB by Monday.

Meanwhile, California–especially Southern California–is bracing for more miserable weather.  There are blizzard warnings (!) for the Southern California mountains, and my old homestead of Irvine (and most of Los Angeles-Orange Counties) is under a Flood Watch:

Here is the beginning of the IRS announcement:

Disaster-area taxpayers in most of California and parts of Alabama and Georgia now have until Oct. 16, 2023, to file various federal individual and business tax returns and make tax payments, the Internal Revenue Service announced today. Previously, the deadline had been postponed to May 15 for these areas. 

The IRS is offering relief to any area designated by the Federal Emergency Management Agency (FEMA) in these three states. There are four different eligible FEMA declarations, and the start dates and other details vary for each of these disasters. The current list of eligible localities and other details for each disaster are always available on the disaster relief page on

The additional relief postpones until Oct. 16, various tax filing and payment deadlines, including those for most calendar-year 2022 individual and business returns. This includes: Individual income tax returns, originally due on April 18; Various business returns, normally due on March 15 and April 18; and returns of tax-exempt organizations, normally due on May 15.

Among other things, this means that eligible taxpayers will also have until Oct. 16 to make 2022 contributions to their IRAs and health savings accounts.

In addition, farmers who choose to forgo making estimated tax payments and normally file their returns by March 1 will now have until Oct. 16, 2023, to file their 2022 return and pay any tax due.

The Oct. 16 deadline also applies to the estimated tax payment for the fourth quarter of 2022, originally due on Jan. 17, 2023. This means that taxpayers can skip making this payment and instead include it with the 2022 return they file, on or before Oct. 16.

The Oct. 16 deadline also applies to 2023 estimated tax payments, normally due on April 18, June 15 and Sept. 15. It also applies to the quarterly payroll and excise tax returns normally due on Jan. 31, April 30 and July 31.

The IRS disaster relief page has details on other returns, payments and tax-related actions qualifying for the additional time. Taxpayers in the affected areas do not need to file any extension paperwork, and they do not need to call the IRS to qualify for the extended time.

Alabama Trying Pop Quizzes to Prevent Identity Theft Refunds

Sunday, November 9th, 2014

An AP Story notes that states are also trying to crack down on identity theft tax refunds. Alabama will be trying pop quizzes. No, not the pop quizzes you had in school but questions related to your identity (e.g. Did you live on Main Street?) that only you would know.

Individuals with unusual returns will receive a letter in the mail asking them to go to an Internet website (or call the Alabama Department of Revenue) so that they can take the quiz. Once returns ‘pass,’ the refunds will be processed. The system is provided by LexisNexis.

While the story does not note what would cause a return to be unusual, I suspect the Alabama Department of Revenue has implemented a version of my modest proposal on identity theft: If the return’s address (or bank account for direct deposit) doesn’t match the prior year’s return, the quiz is sent.

Kudos to the Alabama Department of Revenue for trying this. While the Alabama Department of Revenue noted that they stopped $18 million of identity theft-related refunds in 2012 (the 2013 total is not yet available), undoubtedly many were processed. This seems like a relatively simple process that should stop many identity theft-related refunds.

Alabama Adds Tax Appeals Commission

Sunday, May 20th, 2012

Great Seal of Alabama

In what appears to be a case of everyone being happy, the Alabama legislature with near unanimity (just one ‘no’ vote in both houses of the legislature) approved the new Alabama Tax Appeals Commission. The measure still must be signed off by Governor Robert Bentley.

The new Commission will hear tax appeals, including sales and rental taxes (though cities can opt out). The Commission is expected to save money for both the state and taxpayers–that sounds like a huge win-win. The bill authorizing the Commission also includes conformity provisions to federal tax law.

As J. Wray Pearce, a CPA, told, “will make tax filing simpler for everyone, more effective and less expensive…The independent tax tribunal should make needed appeals easier, and reduce the time required to get resolution.”