MRS to Provide Hurricane Disaster Relief

Jerome Gerard, Acting Executive Director of Maine Revenue Services, has announced Maine Tax Filing Relief for those located in the Presidential-declared disaster areas affected by Hurricanes Katrina and Rita.

Businesses, individuals and those whose tax records are located in the Hurricane Katrina disaster area will have until February 28, 2006 to file tax returns and submit tax payments that were due on or after August 29, 2005 (or, for the Florida-declared disaster areas, due on or after August 24, 2005). Businesses, individuals and those whose tax records are in the Hurricane Rita disaster area will have until February 28, 2006 to file tax returns and submit tax payments that were due on or after September 23, 2005. The relief applies to all taxes administered by Maine Revenue Services, including Sales and Use Taxes, Individual and Corporate Income Taxes, and the Financial Institution Franchise Tax.

Maine Revenue Services will abate interest and any late filing or late payment penalty that would otherwise apply. For those affected by Hurricane Katrina, this relief includes the September 15, 2005 due date for sales tax and estimated income taxes. The relief also applies to withholding tax payments due October 31, 2005; sales tax payments due the 15 th of each month October, 2005 through February, 2006; and corporate returns with extended due dates falling within the period of relief. However, the extended due dates do not automatically apply to Maine Form W-3ME and information returns, such as Forms W-2 and 1099, due on or before February 28, 2006. Extensions for filing these forms will be granted on a case-by-case basis for reasonable cause.

To qualify for relief, affected taxpayers should write as appropriate “HURRICANE KATRINA” or “HURRICANE RITA” across the top of their return. Businesses or individuals located in the Presidential-declared disaster area who receive penalties and interest for filing returns or paying taxes late during the relief period should contact Maine Revenue Services at 207-626-8475 (Income Tax programs) or 207-626-9693 (Sales Tax programs) for a waiver of the penalties and interest.

If the IRS grants relief to other areas affected by the hurricanes or grants an additional relief period, Maine Revenue Services intends to grant similar relief to affected Maine taxpayers.

Taxpayers with questions about special Federal tax relief associated with Hurricanes Katrina and Rita should contact the IRS at 866-562-5227 or go to the IRS web site at www.irs.gov for posted information. Taxpayers with questions about their Maine taxes are encouraged to contact Maine Revenue Services at 207-626-8475 (Income Tax programs) or 207-624-9693 (Sales Tax programs), or visit the Maine Revenue Services web site at www.maine.gov/revenue.