Does Alabama Accept a Federal Tax Extension?

Tax extensions provide taxpayers with additional time to submit their income tax return. An extension grants more time to file the required paperwork, but it does not extend the deadline for paying any taxes owed. Taxpayers remain responsible for remitting any estimated tax liability by the original due date to avoid potential penalties.

Alabama’s Federal Extension Acceptance

Alabama generally aligns its individual income tax filing extension policy with the federal extension for taxpayers who file a federal extension. If a taxpayer files federal Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return, and no additional tax is due to Alabama, the state typically grants an automatic extension. This applies to Alabama individual income tax returns such as Form 40, Form 40A, and Form 40NR. The state’s automatic extension provides an additional six months to file the Alabama return, mirroring the federal extension period. Even with a federal extension, the obligation to pay any estimated tax due to Alabama by the original filing deadline remains.

When an Alabama Extension is Required

A separate Alabama extension, specifically Form 4868A, Application for Automatic Extension of Time to File Alabama Individual Income Tax Return, becomes necessary in certain situations. This form is required if a taxpayer does not file a federal extension or if they need to submit an estimated tax payment along with their extension request to Alabama. When completing Form 4868A, taxpayers must provide their identification details, specify the tax year for which the extension is requested, and include their estimated tax due. This form is available on the Alabama Department of Revenue website for download. Any tax estimated to be due must be paid by the original tax deadline, typically April 15th, even when filing Form 4868A. Payments can be submitted with the mailed Form 4868A or through various online payment options offered by the Alabama Department of Revenue.

Penalties for Late Filing or Payment

Taxpayers may incur penalties for failing to meet their filing or payment obligations by the established deadlines. Both late filing and late payment can lead to monetary charges. These penalties often involve a percentage of the unpaid tax for each month or part of a month the tax remains outstanding. There is a maximum penalty amount that can be assessed for both late filing and late payment. In addition to penalties, interest may also be charged on any underpayment of tax.