Ally Financial Is Stuck With $4 Million Alabama Excise Tax Bill

Ally Financial is on the hook for over $4 million after the Alabama Tax Tribunal ruled that it improperly filed consolidated returns with two related companies.

Ally Financial, IB Finance Holding Co., and Ally Bank don’t meet the statutory requirements for filing financial institution excise taxes together, Judge Leslie H. Pitman wrote in an opinion posted Wednesday. That means Ally Financial’s losses can’t offset profits of Ally Bank for tax years 2011-2019.

Ally Financial owns 100% of the holding company, which owns 100% of the bank. Ally Financial reported losses totaling over $125 million for all tax years as available ...