In response to the severe storms and flooding that began on December 17, 2023 in parts of Maine, the Internal Revenue Service (IRS) has announced tax relief measures for individuals and businesses.
Taxpayers in designated areas, including Androscoggin, Franklin, Hancock, Kennebec, Oxford, Penobscot, Piscataquis, Somerset, Waldo, and Washington Counties, now have until June 17, 2024 to file and pay federal tax returns. This relief is available to those who live or do business in these communities.
The IRS will extend this relief to any other Maine areas later added to the disaster zone. The IRS relief page provides an updated list of eligible regions.
Relief for Filing and Payment for Maine
The tax relief extends the deadlines for filing and paying various taxes from December 17, 2023, to June 17, 2024. Consequently, affected individuals and businesses now have until June 17, 2024, to fulfill their obligations. This includes:
- Individual income tax returns and payments are due April 15, 2024.
- Contributions to IRAs and health savings accounts for the 2023 tax year.
- Quarterly estimated income tax payments are normally due on January 16 and April 15, 2024.
- Quarterly payroll and excise tax returns, usually due on January 31 and April 30, 2024.
- Partnership and S corporation calendar-year returns are due on March 15, 2024.
- Corporation and fiduciary returns and payments for the calendar year are typically due on April 15, 2024.
- Tax-exempt organizations’ calendar-year returns are due on May 15, 2024.
Additionally, penalties for late payroll and excise tax deposits made between December 17, 2023 and January 2, 2024 will be waived if the deposits are made before January 2, 2024.
The IRS disaster relief page offers comprehensive information on additional returns, payments, and tax-related activities eligible for relief during the postponement period.
Taxpayers with an IRS address within the disaster area automatically receive filing and penalty relief without needing to contact the agency directly.
However, for individuals impacted by the disaster but without an IRS address in the affected area, such as those who relocated after filing their return, there’s a possibility of receiving late filing or late payment penalty notices. In such cases, affected taxpayers should promptly reach out to the IRS using the contact information provided on the notice to request penalty abatement.
Furthermore, the IRS assists taxpayers residing outside the disaster area but whose essential records necessary to meet deadlines are located within the affected region. These taxpayers should contact the IRS for assistance at 866-562-5227. This assistance also extends to workers supporting relief efforts affiliated with recognized governmental or philanthropic organizations.
Taxpayers requiring additional tax-filing extensions beyond June 17 for their 2023 federal income tax return are encouraged to request them electronically by April 15. While disaster-area taxpayers qualify to request an extension between April 15 and June 17, requests made during this period can only be submitted on paper. Regardless of the method, taxpayers granted an extension will have until October 15, 2024, to file, with payments still due by June 17. Detailed information is available on IRS.gov/extensions.
Additional Tax Relief
Additional tax relief measures are in place for individuals and businesses in federally declared disaster areas experiencing uninsured or unreimbursed disaster-related losses. Affected taxpayers can choose to claim these losses on either the current year’s return or the prior year’s return, with an extended deadline of up to six months after the due date of the federal income tax return for the disaster year. Publication 547, Casualties, Disasters, and Thefts provides further guidance.
Qualified disaster relief payments are typically excluded from gross income, allowing affected taxpayers to exclude amounts received for necessary expenses and repairs from their taxable income. Publication 525 offers comprehensive details on taxable and nontaxable income.
Further relief may be accessible to affected taxpayers participating in retirement plans or individual retirement arrangements (IRAs), including special disaster distributions and hardship withdrawals, subject to specific rules outlined by each plan or IRA.
The IRS remains open to providing additional disaster relief as necessary, aligning with FEMA’s local damage assessments. For comprehensive information on disaster recovery, individuals can visit DisasterAssistance.gov.
To stay informed about the most recent changes in tax and accounting, make sure to follow our blogs, social media, and website. If you have any questions or require our services, please don’t hesitate to contact us at (562) 403-1177 or via email at info@absetax.com. You’re also welcome to visit our office at 18000 Pioneer Blvd, Suite 203, Artesia, California 90701. Also, follow our social media pages for more updates and news.
We’re dedicated to assisting you with all your tax and accounting requirements.
