Bill To Waive Tax Interest Until New Filing Date

Alex Torres-Perez goes over how a local senator is trying to fix the problem of interest building on your state income taxes.

And i'm dan shaffer.

The deadline to file and pay your state and federal taxes was extended from april 15th to may 17th because of the pandemic.

But even though the state and federal government extended the deadline -- you could be charged interest on your state income tax for waiting.

Waay 31's alex torres-perez goes over how a local senator is trying to fix that.

Senator arthur orr says he plans to file this bill tomorrow morning.

It would allow the alabama department of revenue to waive any interest that might accrue if you don't pay your state income tax by april 15th.

Cody smallwood "i think it would help a lot especially in a pandemic."

Cody and allyson smallwood have already filed their taxes for the year -- but they believe senator arthur orr's bill would help many who haven't.

Cody smallwood "interest can build up pretty fast, and it can be financially crippling for a lot of people."

Senator orr's bill would do 2 things.

First-- it would permanently tie alabama's filing date with the federal government.

Meaning if they extend the deadline -- alabama's would automatically change too -- instead of having to track 2 tax filing days.

Sen.

Orr "that would be terribly confusing for alabama taxpayers, so we need to stick and stay consistent with the federal government when it comes to tax filing dates."

The bill would also allow the alabama department of revenue to waive any interest accrued after april 15th.

The agency says it can waive late penalties for payments made by may 17th -- but it's not authorized to waive any interest that may add up.

For that to happen -- legislation must pass.

Sen.

Orr "if the state is good enough to extend the tax filing deadline, then we don't need to turn around and create a lot of headaches needlessly for the tax payers or the state in trying to collect the interest."

"we just need to get it legal and on the books that no interest would be charged."

Orr says he's confident the bill will pass.

"i think it will sail through, and i think it sail through before april 15th."

The smallwood family says they hope it does.

Smallwood: "being able to cancel that interest can help a lot of people not get worse in debt."

Senator arthur orr says the interest would be an unnecesary headache for the state and taxpayer over a few dollars and cents.

At this time -- it's still unclear how much interest one could face if the bill does not pass.

I reached out to the alabama department of revenue to find out the exact amount-- but have not heard back at this time .

Reporting in huntsville aexandra torres perez waay 31 news.