The State Revenue Department is warning tax payers who use 2 types of forms that there is an error in the instruction booklet. This error will not effect everyone...... only a certain population.
Tax time means reading the instruction books, tallying up the numbers and sending in the forms. But this year there is a mistake in the instruction booklets for the form 40 and non residence, or 40 NR. And it only effects those taxpayers who pay a local occupational tax.
Carla A. Snellgrove is with the Alabama Department of Revenue. She says, "The instructions directed those taxpayers to report that tax as a miscellaneous tax deduction on the schedule a instead of a full tax deduction."
Snellgrove says those people who file their taxes electronically or use a tax preparation service will have the upgrade and need not worry. Plus the department will also take some precautionary measures.
She says, "The department will take a second look at those returns to insure that the taxpayer is claiming that deduction correctly."
The instruction booklets were sent out in December. 112,500 for the form 40, and 18-thousand for the nr form. Of course it's easier on both the taxpayer and the revenue department if the forms are filed electronically. And if you have a problem you can call the department at 242-1000. They will be happy to help.