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IRS Grants Tax Relief to Maine Residents Affected by Severe Storms


The Internal Revenue Service (IRS) has announced significant tax relief measures for individuals and businesses in parts of Maine impacted by severe storms and flooding that began on December 17, 2023. Taxpayers in designated areas now have until June 17, 2024, to file various federal individual and business tax returns and make tax payments.


The relief is applicable to areas designated by the Federal Emergency Management Agency (FEMA), which currently include Androscoggin, Franklin, Hancock, Kennebec, Oxford, Penobscot, Piscataquis, Somerset, Waldo, and Washington Counties. Individuals and businesses residing or operating in these localities qualify for tax relief, with the possibility of other Maine localities being added to the disaster area in the future.


Filing and Payment Relief Details


  • Affected individuals and businesses have until June 17, 2024, to file returns and pay taxes originally due from December 17, 2023, through June 17, 2024.

  • Deadlines affected include individual income tax returns, contributions to IRAs and health savings accounts, quarterly estimated income tax payments, payroll and excise tax returns, and various other tax-related actions.

  • Penalties for failing to make certain tax deposits will be abated if deposits are made by January 2, 2024.

  • The IRS disaster relief page provides detailed information on qualifying returns, payments, and tax-related actions.


How Relief is Provided


  • The IRS automatically offers filing and penalty relief to taxpayers with an IRS address of record in the disaster area, without requiring them to contact the agency.

  • Taxpayers who moved to the disaster area after filing their return may receive penalty notices; in such cases, they should call the number on the notice to have the penalty abated.

  • Taxpayers living outside the disaster area with records necessary for deadlines during the postponement period in the affected area should contact the IRS at 866-562-5227.


Additional Tax Relief and Considerations


  • Taxpayers needing additional filing extension beyond June 17 for their 2023 federal income tax return should request it electronically by April 15.

  • Individuals and businesses with uninsured or unreimbursed disaster-related losses have extended time to claim them on either the current or prior year's tax return.

  • Qualified disaster relief payments are generally excluded from gross income, providing relief for personal, family, living, or funeral expenses, as well as home repair or rehabilitation.

  • Special disaster distributions and hardship withdrawals may be available for those participating in retirement plans or individual retirement arrangements.


Looking Forward


The IRS may provide additional disaster relief in the future as part of a coordinated federal response to storm damage.


This tax relief initiative aims to support the recovery efforts of those affected by the storms, demonstrating the IRS's commitment to helping communities rebuild and individuals regain financial stability.


For more information on disaster recovery, taxpayers are encouraged to visit DisasterAssistance.gov.




 

 

Disclaimer: This article is for informational and educational purposes only and does not constitute legal tax advice. Advanced Tax Solutions is not liable or responsible for any damages resulting from or related to your use of this information. It is your responsibility to refer to official IRS documentation for information regarding any tax laws or tax information shown here.


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