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The Importance of Filing Back Taxes and How to Get Started

Filing back taxes is crucial for maintaining financial health and compliance with IRS regulations. Unfiled tax returns can lead to severe consequences, including penalties, interest, and even legal actions. If you have unfiled tax returns, it’s important to address the situation promptly. Here’s why filing back taxes is essential and how you can get started on the right path.

Ignoring back taxes can lead to a range of negative outcomes. The IRS can impose penalties and interest on the unpaid taxes, significantly increasing your overall tax liability. In some cases, the IRS may file a substitute return on your behalf. This substitute return usually doesn't include deductions or credits you may be entitled to, resulting in a higher tax bill. Additionally, unfiled taxes can impact your credit score, making it difficult to obtain loans or credit in the future. For self-employed individuals, not filing taxes can also affect your eligibility for Social Security benefits, as your earnings are not reported accurately.

Filing back taxes helps you avoid these penalties and can even result in refunds if you are owed money. The IRS typically allows you to claim refunds for up to three years from the original due date of the return. Moreover, staying compliant with tax filings is crucial for maintaining good standing with the IRS and avoiding potential legal actions, such as liens, levies, or wage garnishments.

To get started with filing back taxes, gather all necessary documents. This includes W-2s, 1099s, bank statements, and any other income records for the years you need to file. If you’re missing any documents, you can request a wage and income transcript from the IRS, which provides information reported to the IRS by third parties.

Next, determine which years you need to file. The IRS typically requires you to file returns for the last six years to be considered in good standing. However, it’s a good idea to check with a tax professional to understand the specific requirements for your situation.

Once you have all your documents and know which years you need to file, complete the tax returns for those years. You can use tax software, paper forms, or hire a tax professional to help you. If you’re unsure about how to complete the returns or need assistance with deductions and credits, a tax professional can provide valuable guidance.

After completing your returns, submit them to the IRS along with any payment for taxes owed. If you cannot pay the full amount, consider setting up a payment plan with the IRS. An installment agreement allows you to pay off your tax debt over time, reducing the financial burden.

Communicating with the IRS throughout this process is essential. If you receive any notices or letters from the IRS regarding your back taxes, respond promptly. Keeping the lines of communication open can help you negotiate terms and avoid further enforcement actions.

In some cases, you may qualify for penalty abatement or other relief options. The IRS offers penalty relief for taxpayers who have a reasonable cause for not filing on time, such as a serious illness or natural disaster. Consult with a tax professional to explore these options and determine if you qualify.

Maintaining accurate records and staying organized is crucial for filing back taxes. Keep copies of all filed returns, payment receipts, and correspondence with the IRS. This documentation can be invaluable if you need to reference it in the future.

Addressing unfiled tax returns can be daunting, but taking action is the best way to mitigate the consequences and regain control of your financial situation. By gathering your documents, completing and submitting your returns, and communicating with the IRS, you can resolve your back taxes and move forward with confidence.

At Propono, we specialize in helping individuals and businesses resolve tax issues, including filing back taxes. If you need assistance with unfiled tax returns or have any other tax concerns, contact us today for expert guidance and support. Visit our website at www.propono.tax and schedule a consultation at Propono.

by Rebekah Roy

Non-Cash Charitable Contributions: Insights from a Recent Tax Court Case

Non-cash charitable contributions can be a valuable way to support causes you care about while also receiving tax benefits. However, the rules surrounding these contributions are complex, and failure to comply with IRS requirements can lead to disallowed deductions. A recent tax court case highlights the importance of understanding and adhering to these regulations.

In this case, a taxpayer's non-cash charitable contribution was disallowed due to inadequate documentation and valuation issues. The court emphasized the necessity of obtaining a qualified appraisal for non-cash contributions exceeding $5,000. This appraisal must be attached to the tax return and include a detailed description of the donated property, the method of valuation, and the qualifications of the appraiser.

Key Takeaways from the Tax Court Case

1. Qualified Appraisal Requirement For non-cash contributions over $5,000, the IRS requires a qualified appraisal. This appraisal must be conducted by a qualified appraiser and attached to your tax return. In the recent court case, the taxpayer failed to provide a proper appraisal, leading to the disallowance of the deduction.

2. Detailed Documentation Proper documentation is critical for substantiating non-cash contributions. This includes a written acknowledgment from the charity, describing the property and stating whether any goods or services were received in exchange. The acknowledgment must be received by the taxpayer before the tax return is filed. The taxpayer in the case failed to provide adequate documentation, which contributed to the denial of the deduction.

3. Timeliness of Documentation The IRS requires that all necessary documentation be in the taxpayer’s possession by the time the tax return is filed. In the court case, the taxpayer attempted to provide additional documentation during the audit, but this was not accepted because it was not obtained in a timely manner.

Steps to Ensure Compliance with IRS Rules

1. Obtain a Qualified Appraisal If you are donating non-cash property worth more than $5,000, ensure that you get a qualified appraisal. The appraiser must meet specific qualifications and provide a detailed report. Attach this appraisal to your tax return.

2. Keep Detailed Records Maintain comprehensive records of your non-cash contributions. This includes the written acknowledgment from the charity, a detailed description of the donated property, the date and location of the contribution, and the fair market value of the property at the time of donation.

3. File Documentation on Time Ensure that all documentation, including the appraisal and the charity's acknowledgment, is received before you file your tax return. This documentation must be in your possession and submitted with your return to avoid issues during an audit.

4. Consult with a Tax Professional Given the complexities of non-cash charitable contributions, consulting with a tax professional is advisable. They can help ensure that all requirements are met and that your contributions are properly documented and valued.

Conclusion

Non-cash charitable contributions can provide significant tax benefits, but it is crucial to comply with IRS regulations to ensure your deductions are allowed. The recent tax court case underscores the importance of obtaining a qualified appraisal, keeping detailed records, and ensuring timely documentation. By following these guidelines and consulting with a tax professional, you can maximize your charitable contributions while remaining compliant with tax laws.

At Propono, we specialize in helping taxpayers navigate complex tax situations, including non-cash charitable contributions. If you need assistance with your charitable deductions or any other tax-related issues, contact us today for expert guidance and support. Visit our website at www.propono.tax and schedule a consultation at Propono Consultation.

by Rebekah Roy

Dealing with a Tax Lien: What You Need to Know and Do

Receiving a notice of a tax lien from the IRS can be a stressful experience. A tax lien is a legal claim by the government against your property due to unpaid tax debt. It can affect your credit, your ability to sell property, and even your business operations. Understanding what a tax lien is, how it affects you, and the steps you can take to resolve it is crucial for minimizing its impact. Here’s what you need to know and do if you’re dealing with a tax lien.

A tax lien arises when you owe the IRS money and fail to pay it. The IRS then files a public document, the Notice of Federal Tax Lien, alerting creditors that the government has a legal right to your property. This includes real estate, personal property, and financial assets. The lien protects the government’s interest in your property until the tax debt is paid in full.

The first step in dealing with a tax lien is to understand the severity of the situation. A tax lien can significantly impact your credit score, making it difficult to obtain loans or credit. It can also affect your ability to sell or refinance your property since the lien must be addressed before the sale or refinance can go through. For business owners, a tax lien can complicate business operations by limiting access to credit and affecting relationships with vendors and clients.

Addressing a tax lien promptly is essential to minimize its impact. One way to resolve a tax lien is by paying your tax debt in full. Once the debt is paid, the IRS will release the lien within 30 days. If you cannot pay the full amount, consider setting up a payment plan or an installment agreement with the IRS. This allows you to pay off your debt over time, which can lead to the release of the lien once the terms of the agreement are met.

Another option is to request a discharge of property. This process removes the lien from a specific property, allowing you to sell or refinance it. To qualify for a discharge, you must demonstrate that the sale proceeds will go toward paying your tax debt or that the IRS’s interest in the property is adequately protected. Similarly, you can apply for a subordination, which allows other creditors to move ahead of the IRS in priority, making it easier to obtain a loan or mortgage.

If you believe the tax lien has been filed in error, you can request a lien withdrawal. This removes the public Notice of Federal Tax Lien, which can help improve your credit score. You must prove that the lien was filed in error or that withdrawing it is in the best interest of both you and the government. Even if you still owe the debt, a withdrawal can help you secure financing or sell property by removing the public notice of the lien.

While dealing with a tax lien, it’s crucial to maintain open communication with the IRS. Respond promptly to any notices and provide requested documentation. Keeping the lines of communication open can help you negotiate terms and avoid further enforcement actions, such as wage garnishments or asset seizures.

Professional help can make a significant difference when dealing with a tax lien. A tax professional, such as an Enrolled Agent, CPA, or tax attorney, can guide you through the process, help you understand your options, and negotiate with the IRS on your behalf. They can also assist in preparing the necessary documentation for lien release, discharge, subordination, or withdrawal.

Preventing future tax liens is equally important. Ensure that you stay current with your tax filings and payments. Consider setting up estimated tax payments if you are self-employed or have irregular income. Regularly review your tax situation and seek professional advice to avoid falling behind on your tax obligations.

Dealing with a tax lien can be challenging, but understanding your options and taking prompt action can mitigate its impact. By paying your tax debt, negotiating with the IRS, and seeking professional help, you can resolve the lien and move forward with your financial goals.

At Propono, we specialize in helping individuals and businesses resolve tax issues, including tax liens. If you’re dealing with a tax lien or have any other tax concerns, contact us today for expert assistance. We’re here to help you navigate the complexities of tax law and achieve financial peace of mind. Visit our website at www.propono.tax and schedule a consultation at Propono.

by Rebekah Roy

Navigating Marriage, Divorce, and Tax Resolution

Life changes such as marriage and divorce can significantly impact your tax situation. Whether you’re newly married, going through a divorce, or have experienced IRS tax troubles in the past, understanding how these events affect your taxes is crucial. This guide will help you navigate the complexities of marriage, divorce, and tax resolution, ensuring you stay compliant and optimize your tax situation.

Marriage brings about several changes to your tax filing status, deductions, and credits. One of the first decisions you’ll need to make as a married couple is whether to file jointly or separately. Filing jointly often provides the most significant tax benefits, such as higher income thresholds for tax brackets and eligibility for various credits. However, if one spouse has significant tax liabilities or if you’re concerned about the accuracy of your partner’s tax return, filing separately might be the safer option.

Jointly filing can also impact your eligibility for deductions and credits. For instance, the earned income tax credit, child tax credit, and education credits often provide more substantial benefits for those who file jointly. On the other hand, if you file separately, you may miss out on these valuable tax breaks.

When going through a divorce, understanding how it affects your tax situation is vital. The IRS considers your marital status as of December 31st of the tax year, meaning if you’re divorced by the end of the year, you’ll file as single or head of household, if you qualify. One of the most significant changes post-divorce involves alimony and child support. Alimony payments are no longer deductible for the payer, nor are they considered taxable income for the recipient, for divorces finalized after December 31, 2018. Child support payments, however, remain non-deductible and non-taxable.

Division of assets and property can also have tax implications. Transferring property between spouses as part of a divorce settlement is generally not taxable, but it’s essential to understand the basis and potential future capital gains implications of any property you receive.

If you’ve had IRS tax troubles in the past, both marriage and divorce can complicate your situation further. For instance, when marrying, you may inherit your spouse’s tax issues, including existing debts. In such cases, it’s crucial to communicate openly about your financial history and consider consulting a tax professional to navigate these complexities.

In the case of divorce, resolving joint tax debts is essential. The IRS holds both spouses jointly and severally liable for any tax debt incurred on a jointly filed return. To protect yourself, consider requesting innocent spouse relief if you believe your ex-spouse should be responsible for the debt.

Effective record-keeping is essential during these life changes. Maintain copies of all relevant documents, such as marriage certificates, divorce decrees, and any agreements related to alimony or child support. These records will be invaluable when filing your taxes and resolving any disputes that may arise.

Staying informed about tax law changes is also crucial. Tax laws can change, impacting how marriage and divorce affect your taxes. For example, the Tax Cuts and Jobs Act of 2017 brought significant changes to alimony tax treatment. Keeping up-to-date with such changes ensures you can make informed decisions and optimize your tax situation.

Finally, consider consulting a tax professional to navigate these complex situations. A tax professional, such as an Enrolled Agent, CPA, or tax attorney, can provide personalized advice based on your unique circumstances. They can help you understand the tax implications of marriage and divorce, ensure compliance with tax laws, and assist in resolving any IRS issues you may face.

Navigating marriage, divorce, and tax resolution can be complex, but with the right knowledge and professional support, you can effectively manage these life changes. At Propono, we specialize in helping individuals and couples navigate their tax situations, whether you're dealing with marriage, divorce, or past IRS issues. Contact us today for expert guidance and support to ensure your tax matters are handled correctly and efficiently. Visit our website at www.propono.tax and schedule a consultation.

by Rebekah Roy

Maximizing Deductions: Tax-Saving Tips for Small Business Owners

Running a small business comes with many challenges, especially if you’ve faced IRS tax troubles in the past. One of the best ways to ensure you stay on top of your financial obligations and avoid future issues is by maximizing your tax deductions. By taking advantage of all available deductions, you can significantly reduce your taxable income and save money. Here's a guide to help you understand the key deductions you can claim and tips to maximize your tax savings.

Deductions are expenses that the IRS allows you to subtract from your taxable income, reducing the amount of tax you owe. Properly identifying and claiming these deductions can lead to substantial tax savings. However, it’s essential to keep accurate records and understand the rules to avoid errors that could trigger an audit.

If you use a portion of your home exclusively for business purposes, you may qualify for a home office deduction. This can include a portion of your mortgage interest, rent, utilities, and insurance. The simplified option allows you to deduct $5 per square foot of your home office, up to 300 square feet. Additionally, if you use your car for business purposes, you can deduct either the actual expenses such as gas, maintenance, and repairs, or use the standard mileage rate set by the IRS. For 2023, the standard mileage rate is 65.5 cents per mile. Keep detailed records of your business mileage and expenses to substantiate your deduction.

Office supplies, such as paper, pens, and postage, as well as equipment like computers and printers, are deductible business expenses. Ensure you keep receipts and records of all purchases. Wages, salaries, and benefits paid to employees are fully deductible. This includes bonuses, commissions, and contributions to employee retirement plans. Make sure to maintain detailed payroll records.

Rent paid for your business property is a deductible expense. If you lease equipment, the lease payments are also deductible. Ensure that lease agreements are properly documented. Business-related utilities, such as electricity, water, and internet, are deductible. Additionally, if you use a phone for business, you can deduct the business portion of your phone expenses.

Premiums for business insurance, including property, liability, and health insurance for employees, are deductible. Keep copies of all insurance policies and payment receipts. Business travel expenses, such as airfare, hotel stays, and meals, are deductible. However, meal expenses are only 50% deductible. Ensure you document the business purpose of your travel and keep receipts.

Expenses for marketing and advertising, including website costs, social media advertising, and print ads, are deductible. Track all your marketing expenses to maximize this deduction. Fees paid to lawyers, accountants, and consultants for business services are deductible. Retain invoices and contracts as proof of these expenses.

Accurate and thorough record-keeping is crucial for maximizing deductions. Use accounting software to track expenses and keep digital copies of receipts and invoices. This will make it easier to substantiate your deductions if questioned by the IRS. Maintain separate bank accounts and credit cards for business and personal expenses. This helps ensure that all business expenses are accurately recorded and makes it easier to track and justify your deductions.

Tax laws and regulations can change, so it’s important to stay informed about the latest developments. Subscribe to tax newsletters, attend workshops, and consult with a tax professional to stay up-to-date on new deductions and credits. Timing your purchases can impact your deductions. For example, buying office equipment at the end of the year can help you maximize your deductions for that tax year. Consider your cash flow and tax strategy when making significant business purchases.

Navigating tax deductions can be complex, especially if you have had IRS issues in the past. A tax professional, such as an Enrolled Agent, CPA, or tax attorney, can provide valuable advice and ensure you’re taking full advantage of all available deductions while staying compliant with tax laws.

Maximizing your deductions is a powerful way to reduce your taxable income and save money. By understanding the key deductions available to small business owners and following these tips, you can optimize your tax strategy and avoid future IRS troubles. At Propono, we specialize in helping small business owners manage their taxes effectively and resolve IRS issues. If you’ve faced tax problems in the past or want to ensure you’re maximizing your deductions, contact us today for expert guidance and support. We’re here to help you navigate the complexities of tax law and achieve financial peace of mind. Visit our website at www.propono.tax and schedule a consultation.

by Rebekah Roy

State vs. Federal Tax Issues: Key Differences and How to Handle Each

Navigating tax issues can be challenging, especially when dealing with both state and federal taxes. Understanding the key differences between state and federal tax issues and how to handle each can save you time, money, and stress. In this blog post, we will explore the distinctions between state and federal taxes, common issues that arise with each, and steps to effectively manage them.

Understanding Federal Tax Issues

Federal taxes are imposed by the Internal Revenue Service (IRS) and apply to all U.S. citizens and residents. These taxes fund various federal programs, including defense, social security, and infrastructure. The primary components of federal taxes include income tax, payroll tax, and corporate tax.

Common Federal Tax Issues

1. Filing Errors: Mistakes on your federal tax return, such as incorrect income reporting or missing deductions, can lead to audits and penalties.
2. Underpayment: Failing to pay the full amount of taxes owed can result in interest charges and penalties.
3. Tax Audits: The IRS may audit your return if they suspect errors or discrepancies.
4. Tax Debt: Unpaid taxes can accumulate, leading to significant debt and potential legal actions.

Handling Federal Tax Issues

• Accurate Filing - Ensure your federal tax returns are accurate by double-checking all information and using tax preparation software or professional services. This reduces the risk of errors and audits.
• Pay on Time - Avoid penalties and interest charges by paying your taxes on time. If you cannot pay the full amount, consider setting up a payment plan with the IRS.
• Keep Records - Maintain detailed records of your income, expenses, and deductions. This documentation is crucial if you are audited or need to amend your return.
• Seek Professional Help - Consider consulting with a tax professional, such as an Enrolled Agent, CPA, or tax attorney, especially if you have complex tax issues or face an audit.

Understanding State Tax Issues

State taxes vary by state and can include income tax, sales tax, property tax, and excise tax. Each state has its own tax laws and regulations, which can differ significantly from federal tax laws.

Common State Tax Issues

1. Different Deadlines: State tax filing deadlines may differ from federal deadlines, leading to missed filings and penalties.
2. Income Reporting: States may have different rules for reporting income, especially for out-of-state earnings.
3. Sales Tax Compliance: Businesses need to collect and remit sales tax according to state laws, which can vary widely.
4. Property Taxes: Issues can arise with property tax assessments and payments, leading to disputes with local tax authorities.

Handling State Tax Issues

• Understand State Laws - Familiarize yourself with your state's tax laws and regulations. Visit your state's tax agency website or consult a local tax professional for guidance.
• File on Time - Ensure you meet all state tax filing deadlines to avoid penalties. Set reminders and use tax preparation software that supports state tax filings.
• Accurate Reporting - Report your income and other taxable activities accurately according to state laws. This includes any out-of-state earnings and sales tax collections.
• Appeal Property Tax Assessments - If you believe your property tax assessment is incorrect, you can appeal it. Gather evidence, such as recent property sales data and appraisal reports, to support your case.

Key Differences Between State and Federal Tax Issues

1. Jurisdiction: Federal taxes are managed by the IRS, while state taxes are handled by individual state tax agencies.
2. Tax Rates: Federal tax rates are uniform across the country, while state tax rates can vary widely.
3. Deductions and Credits: Federal and state tax laws offer different deductions and credits, which can impact your overall tax liability.
4. Filing Requirements: States may have unique filing requirements and forms that differ from federal requirements.

Conclusion

Understanding the differences between state and federal tax issues is crucial for effective tax management. By familiarizing yourself with the specific requirements of each, accurately reporting your income, and seeking professional help when needed, you can navigate these complexities with confidence.

At Propono, we specialize in helping taxpayers manage both federal and state tax issues. Whether you’re facing an audit, dealing with tax debt, or need assistance with tax filings, our team of experienced tax professionals is here to help. Schedule a meeting with us today to ensure your tax matters are handled correctly and efficiently.  Learn more at www.propono.tax

by Rebekah Roy

Understanding IRS Notice CP2000: Steps to Take and Avoid Common Mistakes

by Rebekah Roy

The Benefits of Hiring a Professional Tax Accountant for Your Tax Liability

If you owe the IRS more than $25,000, you’re likely feeling the weight of this financial burden. Both individuals and business owners can find themselves in challenging situations when tax liabilities reach significant amounts. The complexities of tax laws and the fear of IRS actions can be overwhelming. This is where hiring a professional tax accountant can be invaluable. Here, we’ll explore the benefits of enlisting a professional to manage your tax liabilities and navigate IRS troubles.

In-Depth Knowledge of Tax Laws and Regulations

Professional tax accountants, particularly Enrolled Agents (EAs), possess a deep understanding of tax laws and regulations. EAs are federally licensed tax practitioners who have undergone extensive training and examinations. They are authorized to represent taxpayers before the IRS. This expertise ensures that they are well-equipped to handle your tax issues, providing you with accurate and up-to-date advice tailored to your specific situation.

Customized Tax Resolution Strategies

Every taxpayer’s situation is unique, and a one-size-fits-all approach is rarely effective. A professional tax accountant will evaluate your individual circumstances and develop a customized strategy to address your tax liabilities. They can negotiate with the IRS on your behalf, exploring options such as installment agreements, offers in compromise, and penalty abatements. This personalized approach increases the likelihood of a favorable outcome, helping you manage and reduce your tax debt effectively.

Precision and Timeliness in Filing

Errors on tax returns can lead to further complications, penalties, and increased scrutiny from the IRS. Professional tax accountants ensure that your filings are accurate and submitted on time, minimizing the risk of mistakes. Their meticulous attention to detail and thorough understanding of tax forms and schedules means that your returns are completed correctly. This precision not only helps avoid potential issues but also provides peace of mind, knowing that your tax matters are in capable hands.

Reduction of Stress and Anxiety

Dealing with significant tax liabilities can be incredibly stressful. The fear of audits, penalties, and legal actions can take a toll on your mental health. Hiring a professional tax accountant alleviates this stress. They handle all communications with the IRS, represent you in meetings, and manage the necessary paperwork. This allows you to focus on other important aspects of your life or business without the constant worry about your tax situation.

Maximization of Tax Relief Opportunities

Tax accountants are skilled at identifying tax relief opportunities that you might not be aware of. They can uncover deductions, credits, and exemptions that can reduce your tax liability. By leveraging their knowledge, you can potentially save a significant amount of money and lessen the impact of your tax debt. This expertise in finding and applying for these relief opportunities is crucial in minimizing the financial burden of your tax liabilities.

Long-Term Financial Planning and Stability

Beyond resolving your immediate tax issues, a professional tax accountant can assist with long-term financial planning. They can provide advice on structuring your finances, managing cash flow, and planning for future tax obligations. This proactive approach helps prevent future tax problems and ensures that you remain in good standing with the IRS. By implementing sound financial strategies, you can achieve greater financial stability and security.

Representation Before the IRS

One of the most significant advantages of hiring a professional tax accountant, particularly an Enrolled Agent, is their ability to represent you before the IRS. Whether you’re dealing with audits, collections, or appeals, having a knowledgeable advocate on your side can make a substantial difference. They can negotiate more effectively, ensuring that your interests are protected and that you receive fair treatment from the IRS.

Conclusion

Facing a substantial tax liability can be daunting, but you don’t have to tackle it alone. Hiring a professional tax accountant provides you with the expertise, support, and peace of mind needed to navigate the complexities of tax resolution. If you owe the IRS more than $25,000 and don’t know where to turn, consider enlisting the help of a seasoned tax professional. It’s a strategic investment that can lead to significant savings and a more secure financial future.

Schedule a consultation with Propono today to find out how we can help you resolve your tax problems!

by Rebekah Roy

Dealing with IRS Wage Garnishments

by Rebekah Roy

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.

by Rebekah Roy