This appeal involved the denial by the Alabama Department of Revenue of a request for a refund of income tax for 2021.
On May 26, 2023,
the Alabama Legislature enacted Act 377 (“the Rebate Act”), which provided a
one-time refundable tax credit (“rebate”) to qualified taxpayers. The Rebate
Act allotted to “individual taxpayers” who filed an Alabama 2021 individual
income tax return “on or before October 17, 2022,” a “one-time refundable
income tax credit” of “$150.00 for single, head of family, and married filing
separately” taxpayers, and $300.00 for “married filing jointly” taxpayers. This
appeal stemmed from the Department’s denial of the rebate allotted by the
Rebate Act concerning the Taxpayers.
The Department
stated that the Taxpayers did not file their 2021 Alabama individual income tax
return until March 11, 2024, well past the October 17, 2022, deadline imposed
by the Rebate Act.
At trial, the
Taxpayers argued that they filed their 2021 Alabama individual income tax
return before the Rebate Act’s October 17, 2022, deadline. Mr. Brewster stated
that the Taxpayers filed their 2021 return on April 7, 2022, specifying that
the return was signed on April 7, 2022, and then mailed to the Department on
April 8, 2022. The Taxpayers provided the certified mail receipt they received
from the United States Postal Service when they mailed the return on
April 8, 2022. The Taxpayers also provided a copy of the canceled check payable
to the Department for their 2021 tax liability, and their bank records that
reflected their check was processed by the Department on June 2, 2022, and
withdrawn from the Taxpayers’ bank account on June 3, 2022.
Noting that the
burden is on a taxpayer to prove that a refund is due, the Tax Tribunal
determined the Taxpayers here had met that burden. One key to that decision was
the Taxpayers’ ability to demonstrate that the weight of the package mailed
belied the Department’s position that the Taxpayers only mailed a check and not
their tax return.
To read the decision, click here.
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