Dealing with IRS Wage Garnishments

Dealing with IRS collections can be daunting, especially when faced with the prospect of a wage garnishment. The complexity of tax law combined with the financial strain of having your paycheck reduced can feel overwhelming. However, understanding your options and taking proactive steps can help alleviate the stress and resolve your tax debt. In this guide, we'll explore the process of wage garnishment, how to address it effectively, and steps to prevent future IRS collection actions.

Understanding Wage Garnishment:

Wage garnishment is a legal process through which the IRS requires your employer to withhold a portion of your earnings to satisfy a tax debt. This can occur when you owe back taxes, have unfiled tax returns, or have unresolved tax debt. The IRS typically sends several notices before initiating wage garnishment, providing you with an opportunity to address the issue before it escalates.

Completing Form 668-W:

If a wage garnishment has been ordered, you'll need to complete Form 668-W, Notice of Levy on Wages, Salary, and Other Income. This form outlines the amount to be withheld from your paycheck and provides instructions for your employer. It's crucial to fill out this form accurately and promptly to ensure compliance with IRS requirements.

Resolving Wage Garnishments:

To remove a wage garnishment, several options are available:

  1. Installment Agreement: This arrangement allows you to pay off your tax debt over time in manageable monthly installments. It can help stop wage garnishment as long as you adhere to the agreed-upon payment plan.
  2. Offer in Compromise (OIC): An OIC enables you to settle your tax debt for less than the full amount if you can demonstrate financial hardship. If accepted, it can also halt wage garnishments.

Staying Compliant:

Preventing future IRS collection actions is essential to maintaining financial stability. This includes filing your tax returns on time, paying any taxes owed promptly, and keeping accurate financial records. Seeking professional tax assistance can provide valuable guidance in staying compliant and resolving tax debt effectively.

Dealing with wage garnishments can be challenging, but it's essential to take proactive steps to address the issue and prevent future IRS collection actions. By understanding your options, completing necessary forms accurately, and seeking professional assistance when needed, you can resolve your tax debt and regain control of your finances. Contact Propono today for expert guidance and support in managing IRS wage garnishments.

At Propono, we specialize in tax resolution services and understand the complexities of IRS collections. If you're facing wage garnishment issues, our team of experts is here to help. We'll work with you to explore your options, negotiate with the IRS on your behalf, and develop a personalized resolution plan tailored to your financial situation.

To start working with us, visit: https://propono.taxdome.com/


Maine Tax Relief for Severe Weather

In December 2023, Maine faced the brunt of severe weather conditions that left a trail of destruction in its wake. From power outages to flooding and significant damage, the central and western regions of the state bore the impact of these natural disasters. In response to the crisis, President Joe Biden declared a Major Disaster Declaration, opening the door to federal assistance to aid in the recovery efforts. As part of this relief, the Internal Revenue Service (IRS) announced tax relief measures for individuals and businesses across ten affected counties.

Disaster Declaration Brings Hope

President Biden's approval of the Major Disaster Declaration for central and western Maine marks a significant step in supporting the state's recovery. The declaration enables federal assistance to complement local recovery initiatives. It's a sign of solidarity in the face of adversity, and it offers a glimmer of hope to those grappling with the aftermath of the severe weather events.

Tax Relief for the Affected

The IRS wasted no time in extending its support to the residents and businesses of the affected counties. In a news release, the IRS detailed the tax relief measures available to those impacted by the disaster. This relief covers a wide range of financial aspects, including tax filing and payment deadlines.

Eligible Counties

The relief extends to individuals and businesses in the following ten counties: Androscoggin, Franklin, Hancock, Kennebec, Oxford, Penobscot, Piscataquis, Somerset, Waldo, and Washington. If you reside or have a business in any of these areas, you are eligible for the extended tax relief.

Extended Deadlines

One of the key provisions of this relief is the extension of tax filing and payment deadlines. Individuals and businesses affected by the severe weather now have until June 17 to file their tax returns and settle any taxes due during the current period. This extension provides much-needed breathing room during the recovery phase.

Additional Time

For those who require more time to gather their financial documents and prepare their federal income tax returns, the IRS has set an April 15 deadline for requesting an extension. This extension would grant a new deadline of October 15, 2024, ensuring that individuals and businesses can meet their tax obligations without unnecessary stress.

FEMA's Role

The relief and deadline extensions come on the heels of the Federal Emergency Management Agency's (FEMA) disaster declaration. FEMA's declaration empowers the IRS to postpone specific tax-filing and tax-payment deadlines for residents and businesses located in designated disaster areas.

Stay Informed

As damage assessments continue, those who have incurred losses in areas designated for assistance can apply for aid through FEMA. The application process can be initiated online, via phone at 800-621-FEMA (3362), or using the FEMA App. It's important to stay informed about the assistance available to aid in the recovery process.  Visit https://www.fema.gov/.

In times of crisis, support from both federal and local authorities is crucial. The Major Disaster Declaration for central and western Maine, along with the Maine Severe Weather Tax Relief measures, offers a lifeline to those affected by severe weather. As the state rebuilds and recovers, these measures provide essential financial relief, allowing Maine residents and businesses to focus on their recovery efforts with greater peace of mind.


IRS Announces Key Updates and Relief Measures

Tax Filing Commences for 2023 Earnings The Internal Revenue Service (IRS) has announced that taxpayers can start filing their taxes on 2023 earnings from January 29, 2024. This marks the official commencement of the 2024 tax season, signaling the need for taxpayers to prepare their documents and filings.

Significant Penalty Relief for Taxpayers In a major development, the IRS is offering penalty relief for eligible taxpayers who were impacted by the pause in collection notices during 2020 and 2021. This relief comes as part of the IRS’s response to the COVID-19 pandemic, during which it temporarily halted the mailing of automated payment reminders for overdue tax bills. While reminder notices were suspended, penalties for failing to pay continued to accrue, placing an added burden on taxpayers.

This new penalty relief is expected to benefit nearly 5 million taxpayers, providing an estimated $1 billion in tax relief. Targeted primarily at individuals earning under $100,000 annually, this relief represents a significant easing of the financial burden for many.

Staggered Account Adjustments The IRS has detailed a phased approach to making these adjustments. Individual accounts have already been adjusted, with business accounts set to follow in late December to early January. Trusts, estates, and tax-exempt organizations will see adjustments in late February to early March 2024.

For those eligible, this relief is automatic, requiring no action on their part. Taxpayers who have already paid the penalties but qualify for relief will receive refunds or have their payments credited against outstanding tax liabilities. However, it’s important to note that the failure-to-pay penalty will resume on April 1, 2024, for eligible taxpayers.

IRS Commissioner Comments on Relief Measures IRS Commissioner Danny Werfel emphasized the agency’s commitment to supporting taxpayers, especially those who haven’t received communication from the IRS in a while and might face a sudden tax bill. This penalty relief is part of the IRS’s broader effort to provide a more taxpayer-friendly approach.

Important Dates and Deadlines for 2024 Tax Season

  • Tax Season Start Date: January 29, 2024.
  • Federal Tax Return Deadline: April 15, 2024.
  • Extended Deadlines for Maine and Massachusetts: April 17, 2024, due to state holidays.
  • Special Provisions for Disaster Areas: Additional filing time may be available.

The IRS expects to process over 128.7 million individual tax returns by the April 15 deadline, with most refunds issued within 21 days, and many available by February 27. However, some returns requiring additional review may take longer.

IRS Launches Direct File Program In a transformative move, the IRS is introducing the pilot Direct File program in 2024. This program allows eligible taxpayers to file their 2023 federal tax returns online directly with the IRS, free of charge. Initially available in phases, the program is expected to be fully operational by mid-March.

Eligible residents in 12 states, including those from states without an income tax, can participate if they meet specific criteria. Four states – Arizona, California, Massachusetts, and New York – are collaborating with the IRS to integrate state taxes into the program.

Commissioner Werfel assures taxpayers of continuous improvements in IRS operations, emphasizing the agency’s commitment to utilizing new funding to enhance taxpayer services.

Our sister company, Heritage Tax Company, is accepting new tax clients.  Click here for the New Client Application.


5 Common Triggers for Small Business IRS Audits: How to Stay Prepared

IRS audits can be a source of anxiety for both individual taxpayers and small business owners. In recent years, the IRS has increased its focus on auditing small and medium-sized businesses, especially those with relatively low annual revenue. While there's no foolproof way to avoid an audit, being aware of common red flags and taking preventive measures can significantly reduce your risk. In this blog post, we'll explore five reasons why small businesses get audited and provide tips on how to minimize your audit risk.

1. Reasonable Salary Small businesses structured as S-Corporations need to pay their shareholder-employees reasonable salaries. Paying an unreasonably low or high salary can trigger an audit, as it may be an attempt to avoid payroll taxes. Determining what constitutes "reasonable compensation" can be complex, but conducting market research and ensuring your salaries align with industry standards can help you stay in compliance.

2. Losses and Deductions While itemizing deductions is common for small business owners, having an excessive number of deductions can raise red flags. Deductions must meet the criteria of being both "ordinary" and "necessary" for your trade or business. Keep meticulous records, retain receipts, and ensure your deductions align with IRS guidelines to avoid scrutiny.

3. Shareholder Distributions Shareholder distributions must be handled alongside reasonable compensation. Making distributions without providing proper compensation can attract IRS attention as an attempt to avoid payroll taxes. Understand your options, which include no compensation, reasonable compensation, or a combination of both. Be aware that retroactive distributions may come with additional costs.

4. Employment Tax Compliance Misclassifying workers as independent contractors when they should be employees is a common audit trigger. Independent contractors should have control over their schedules, work assignments, and conditions. Review IRS guidelines carefully when hiring new workers to avoid misclassification and potential liabilities.

5. Entity-Level Issues Businesses that deal primarily in cash transactions, such as restaurants or beauty salons, may face a higher risk of audits due to the difficulty of tracking cash income. While cash transactions are essential for some businesses, maintaining impeccable records and accurately reporting income is crucial to minimize audit risk.

While IRS audits remain a concern for small businesses, understanding these common triggers and taking proactive steps to address them can help you reduce your audit risk. Ensuring reasonable compensation, careful deduction reporting, proper handling of shareholder distributions, accurate worker classification, and diligent record-keeping can go a long way in keeping your small business in compliance with tax regulations. Remember, being prepared and informed is your best defense against potential audits.


Your Guide to the IRS's ERC Voluntary Disclosure Program

Employee Retention Credit notebook
The Employee Retention Credit took the business world by storm. Learn more about your options if you were involved in a false claim.

The IRS has launched a groundbreaking initiative aimed at helping businesses correct and repay questionable Employee Retention Credit (ERC) claims. In this blog post, we delve into the details of the ERC Voluntary Disclosure Program—a unique opportunity for businesses to rectify their claims and avoid penalties. Act swiftly, as the program is open only until March 22, 2024.

Understanding the Background

The IRS initiated this program as part of its ongoing efforts to combat aggressive marketing practices surrounding the ERC. Some businesses were misled into making erroneous claims, and the IRS is keen on setting things right. This voluntary disclosure program is designed to provide relief to eligible businesses while ensuring tax compliance.

Previous Initiatives

Earlier this year, the IRS began mailing letters to thousands of taxpayers, notifying them that their ERC claims had been disallowed. These letters were sent to businesses that did not meet the basic eligibility criteria. To further assist businesses, a withdrawal option was introduced in October, allowing certain employers to withdraw their ERC claims, avoiding future repayment, interest, and penalties. This option has already seen millions in ERC claims being withdrawn.

In September, the IRS implemented a moratorium on processing new ERC claims, set to last until early 2024. No new claims will be reviewed or processed during this period.

Key Details of the Disclosure Program

Interested businesses must apply for the ERC Voluntary Disclosure Program by March 22, 2024. If accepted, they will need to repay only 80% of the credit they received. The IRS will not charge interest or penalties on these repayments. Any interest paid on the ERC refund claim does not need to be repaid.

For businesses unable to repay the credit in full, there may be an option for an installment agreement on a case-by-case basis. However, entering into such an agreement without repaying the required 80% upfront will result in penalties and interest.

The IRS chose the 80% repayment figure to accommodate businesses that were lured into making questionable claims by unscrupulous preparers who often took fees of at least 20%, leaving businesses without the full credit.

Disclosure Requirements

As part of the application process, businesses must provide the IRS with information about advisors or tax preparers who advised or assisted with their ERC claims. This information will be used to identify patterns of abuse and ensure promoters are held accountable.

Eligibility

Businesses that have already received the ERC but aren't entitled to it can apply for the program if they meet certain criteria:

  • Not under criminal investigation
  • Not under an IRS employment tax examination
  • Not received an IRS notice and demand for repayment of the ERC
  • The IRS has not received noncompliance information from a third party

How to Apply

To apply, businesses must complete Form 15434, "Application for Employee Retention Credit Voluntary Disclosure Program," available on IRS.gov. The form must be submitted using the IRS Document Upload Tool. Employers who outsource payroll must have the third party file Form 15434.

Next Steps

Once accepted into the program, an IRS employee will review the application and answer any questions. If approved, businesses will receive a closing agreement and will need to repay 80% of the ERC received using the Electronic Federal Tax Payment System (EFTPS). For those unable to pay in full, an installment agreement may be an option, but it comes with penalties and interest.

Ongoing Efforts

The ERC Voluntary Disclosure Program is just one step in the IRS's ongoing efforts to combat ERC fraud. The IRS is intensifying audits and investigations into dubious claims and urging businesses to review ERC requirements and consult with tax professionals to ensure compliance.

Conclusion

The ERC Voluntary Disclosure Program offers a valuable opportunity for businesses to correct their claims, avoid penalties, and promote tax compliance. Take action before March 22, 2024, to benefit from this initiative and protect your financial interests.

Stay tuned for more updates on tax regulations and compliance.  www.proponotaxresolution.com


Navigating the Employee Retention Credit (ERC) Minefield

In 2020, as a part of the CARES Act, the U.S. government introduced the Employee Retention Credit (ERC), a vital tax relief measure to counter the economic impact of the COVID-19 pandemic. Aimed at supporting businesses that kept paying their employees during this challenging period, the ERC offered a refundable tax credit on wages paid between March 12, 2020, and January 1, 2022. Businesses were eligible to claim this credit on their quarterly employment tax returns, providing much-needed financial relief during a time of unprecedented hardship.

However, the well-intentioned ERC soon became a target for abuse. Misled often by aggressive marketing tactics, some businesses filed claims without fully meeting the eligibility criteria, leading to a substantial number of improper claims. Recognizing this issue, the IRS implemented a moratorium on processing new ERC claims from September 14, 2023, allowing them time to conduct thorough compliance reviews and protect legitimate businesses from the consequences of fraudulent claims.

The IRS's response didn't stop there. More than 20,000 letters have been sent out to notify taxpayers of disallowed ERC claims, focusing particularly on entities that either didn't exist or lacked paid employees during the eligibility period. This action is part of a larger effort to maintain the integrity of the ERC and includes programs like special withdrawal options for pending claims and a voluntary disclosure program for those who wish to rectify their situation and avoid future IRS action.

Amidst this intensified scrutiny, many taxpayers and business owners find themselves overwhelmed and uncertain. This is where Propono steps in, offering expert tax resolution and representation services. Our team is well-versed in the complexities of the ERC and is ready to assist you, whether you're disputing a claim, seeking guidance on compliance, or facing an audit.

If you've inadvertently filed an inaccurate ERC claim or are unsure about your claim's accuracy, it's crucial to take proactive steps. Propono can assist you in reviewing your situation and, if necessary, in withdrawing your claim before it's processed by the IRS. This proactive step can prevent future repayments, interest, and penalties, offering a vital lifeline for businesses that may have been misled into filing ineligible claims.

For example,  ABC Tech, a small software development company, faced significant financial challenges during the COVID-19 pandemic. With a reduction in client contracts and revenue, the company looked for ways to support its workforce. ABC Tech's owner heard about the Employee Retention Credit and believed it could provide the needed relief.  In 2021, ABC Tech filed for the ERC, claiming a credit of $50,000. The claim was based on the wages paid to its ten employees during the pandemic. The company included this credit in its quarterly employment tax return, expecting a refund from the IRS.

However, upon review, the IRS denied the ERC claim made by ABC Tech. The IRS investigation found that although ABC Tech did experience a decrease in business, it did not meet the required threshold of a "significant decline in gross receipts" as outlined in the ERC guidelines. Additionally, the IRS discovered that ABC Tech had received a Paycheck Protection Program (PPP) loan and used it to cover the same payroll costs for which they claimed the ERC. Since double-dipping into both relief programs for the same expenses was not permitted, ABC Tech's ERC claim was deemed ineligible.

As a result of the denial, ABC Tech was required to repay the $50,000 credit it had claimed, along with potential penalties and interest. The company also faced additional scrutiny from the IRS for future tax filings.

This example highlights the importance of understanding the specific requirements and guidelines of the ERC program and ensuring that all criteria are met before making a claim. It also underscores the need for accurate record-keeping and possibly seeking advice from a tax professional when navigating these complex tax relief programs.

The landscape of ERC claims has become more challenging than ever, but with Propono's guidance and representation, you can navigate these challenges confidently. We're here to ensure that your business's financial health is safeguarded and that your tax obligations are managed successfully.

For anyone navigating these turbulent waters, remember: the right advice and representation are key to staying compliant and managing your tax obligations effectively. Trust in Propono's expertise to guide you through these complex times. Contact us today for expert assistance with your ERC and other tax-related concerns.


Divorce and Taxes

Divorce is sticky and never fun.

In a complex Virginia divorce case, a stay-at-home mother faced the daunting challenge of understanding her husband's business finances. Without this knowledge, she was at a clear disadvantage. To remedy this, she sought the expertise of Cheryl B. Hyder, a forensic accountant. Hyder's intervention was a game-changer. She not only unearthed vital financial information but also demystified it for the layperson. Her skill in making sense of intricate financial records became a key factor in achieving a fair division of assets in court.

Cheryl B. Hyder's journey into forensic accounting is rooted in her passion for clarifying financial complexities. With a solid background in tax, she shifted her focus to forensic accounting in the 1990s. Hyder's knack for problem-solving goes beyond the financial realm, as evidenced by her volunteer work with a pit bull rescue organization, showcasing her diverse set of interests and commitment to community service.

Forensic accountants like Hyder are increasingly essential in various sectors, not just in personal disputes. With over 62,000 Certified Fraud Examiners worldwide, a number that has grown by 18% since 2018, their expertise is sought after in a range of scenarios. They engage in tasks such as business valuation, tracking assets in offshore accounts, dissecting financial frauds, and even tracing cryptocurrency transactions linked to these frauds. Their skills are indispensable in unraveling the web of complex financial transactions.

High-profile divorce cases often highlight the significance of forensic accountants. In the notable divorce of actor Kevin Costner, forensic accountants played a pivotal role. They meticulously analyzed detailed financial records, from lavish expenditures to concealed assets, providing insights that heavily influenced court decisions regarding child support and legal fees.

The meticulous nature of forensic accounting involves scrutinizing every financial detail, no matter how minor. This thorough approach is vital not only in divorce cases but also in corporate disputes and fraud investigations. By identifying specific spending patterns, forensic accountants can uncover hidden income streams or provide evidence of fraudulent activities.

A striking example of this was seen in a Florida divorce case, where forensic accountants uncovered unauthorized transfers from an inherited estate, demonstrating their critical role in exposing financial malfeasance. Such detailed investigations can transform legal disputes, with the findings often pushing parties towards settlement or arbitration.

The growing complexity of financial transactions in legal disputes, especially in cases involving businesses or international assets, underscores the increasing importance of forensic accountants. Their ability to decode financial intricacies is not merely a mechanism for legal resolution but often serves as a catalyst for reaching equitable settlements. In a world where financial dealings are ever more intricate, the role of forensic accountants in providing clarity and fairness cannot be overstated.


Understanding the Tax Implications of Debt Settlement

During challenging economic times, debt settlement emerges as a strategic option for reducing debt through negotiations with creditors. This approach typically involves discussions with entities such as credit card companies or providers of personal loans to agree on a lower repayment amount. However, navigating this process requires a thorough understanding of several factors that can significantly impact the outcome, including the important aspect of potential tax consequences.

Exploring the Dynamics of Debt Settlement:

The essence of debt settlement lies in the ability to negotiate with creditors to agree on a payment that is less than the total amount owed. This negotiation can occur directly between the debtor and the creditor or can be facilitated through the expertise of specialized debt settlement companies. While this appears as a straightforward method to alleviate financial burdens, it is imperative to comprehend the multifaceted nature of this process and how various elements, such as creditor policies and negotiation tactics, play a crucial role in determining the effectiveness of the settlement.

Navigating Tax Implications with Form 1099-C:

One of the critical aspects of debt settlement is the tax implications associated with the forgiveness of debt. When a creditor agrees to settle for an amount less than the total debt, the forgiven portion is considered as taxable income by the IRS. This is formally documented through Form 1099-C, which is sent to both the debtor and the IRS. For instance, if a creditor forgives $8,000 from a debt, the debtor will receive a 1099-C form for that amount. This results in an increase in taxable income, potentially diminishing the net financial benefit of the debt settlement. Understanding the nuances of this tax obligation and exploring eligibility for any exceptions is a critical step in the process.

Incorporating Taxes and Additional Fees into the Equation:

A comprehensive approach to debt settlement involves factoring in not only the tax implications but also any additional fees that may arise. These fees can include charges by debt settlement companies, often ranging from 15% to 25% of the total debt. For example, in a scenario where a debtor settles a $15,000 debt for $7,000 and subsequently receives a 1099-C for the forgiven $8,000, the additional tax liability could vary significantly depending on the individual’s tax bracket. This added tax burden, along with the fees charged by settlement companies, needs to be considered to accurately assess the overall cost and potential savings of the debt settlement process.

Making an Informed Decision with Professional Guidance:

The complexity of debt settlement, with its varied tax implications and fees, underscores the importance of making informed decisions. Seeking the guidance of financial advisors or legal professionals can provide invaluable insights and advice tailored to individual circumstances. These experts can help navigate the intricate landscape of debt settlement, ensuring that decisions are aligned with long-term financial health and goals.

Utilizing the Insolvency Exception to Mitigate Tax Burden:

The IRS offers a form of relief through the insolvency exception, which can significantly reduce the tax impact of forgiven debt. If a debtor's total liabilities exceed their assets at the time of the debt settlement, they may be able to exclude the forgiven debt from their taxable income, up to the extent of their insolvency. However, leveraging this exception requires careful calculation and proper documentation, making professional advice crucial.

The Bankruptcy Exception: A Pathway to Debt Relief:

In cases where bankruptcy is filed, any debt forgiven as a result of the bankruptcy process is exempt from being treated as taxable income. This legal provision offers a pathway for individuals to achieve substantial relief from both their debts and associated tax liabilities, potentially leading to significant financial savings.

In conclusion, while debt settlement can serve as a valuable tool for individuals grappling with debt, it is vital to have a comprehensive understanding of the associated tax implications, potential exceptions such as insolvency and bankruptcy, and the overall impact of fees. Seeking expert advice before embarking on the debt settlement journey is essential to making informed financial decisions that pave the way for achieving true financial freedom. Please contact us for more information.  207-901-1000.


IRS Introduces Relief Option for Employers Affected by ERC Scams

The Internal Revenue Service (IRS) has rolled out a lifeline for employers who have unwittingly fallen victim to scams associated with the Employee Retention Credit (ERC). This move follows the IRS's temporary suspension of new ERC claim processing due to a substantial increase in submissions, spurred by relentless promotion by entities commonly known as "ERC mills."

Here's a more detailed look at this significant development:

A Way Out: Employers who have previously submitted ERC claims but have not yet received refunds can now opt to withdraw their claims. This new withdrawal option is designed to help these employers avoid future repayment obligations, as well as interest and penalties.

Eligibility Criteria for Withdrawal: To qualify for the withdrawal process, employers must meet specific conditions:

  • ERC claims should have been submitted through an adjusted employment return (Forms 941-X, 943-X, 944-X, CT-1X).
  • The adjusted return must have been filed exclusively for the purpose of claiming the ERC, with no other adjustments.
  • Employers must express their intent to withdraw the entire ERC claim.
  • Importantly, the IRS should not have already disbursed payment for their claim, or if payment was issued, it should not have been cashed or deposited.

No Penalties or Interest: Employers who choose to withdraw their claims will not face any penalties or interest. The IRS will treat these claims as if they were never filed.

This IRS initiative aims to protect well-meaning businesses that may have been misled by aggressive marketing tactics employed by certain entities promoting the ERC. It underscores the importance of employers exercising caution, staying well-informed about the ERC, and avoiding costly loans or falling prey to scams.

For detailed instructions on how to withdraw an ERC claim and additional pertinent information, please visit IRS.gov/withdrawmyERC.

The IRS remains steadfast in its commitment to supporting small businesses and organizations as they navigate the complexities associated with the Employee Retention Credit. If you have questions or require further assistance, please do not hesitate to reach out.

Stay informed, stay vigilant, and stay protected.


IRS Grants Extension to Taxpayers Affected by Hurricane Lee in Maine and Massachusetts

Hurricane Lee, a significant event during the 2023 Atlantic hurricane season, left its mark on the northeastern United States earlier this year. In response, the IRS has introduced tax relief measures for both individuals and businesses impacted by the storm in Maine and Massachusetts.  These taxpayers now have until February 15, 2024 to file their 2022 tax returns.

 

Eligible Recipients

The IRS extends its relief to all areas officially designated as disaster zones by the Federal Emergency Management Agency (FEMA). As a result, individuals and businesses located in the following Maine counties can take advantage of this tax relief: Androscoggin, Aroostook, Cumberland, Franklin, Hancock, Kennebec, Knox, Lincoln, Oxford, Penobscot, Piscataquis, Sagadahoc, Somerset, Waldo, Washington, and York.