Maine offers break for tax delinquents
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BY SUSAN M. COVER
Staff Writer
Kennebec Journal & Morning Sentinel 08/24/2009

AUGUSTA -- Slacker taxpayers take note.

The state is running a special program that offers a 90 percent break on penalties.

The Legislature is hoping to collect $9 million in previously uncollected revenue through a Tax Receivables Reduction Initiative, said Jerome Gerard, acting executive director of Maine Revenue Services.

The program, which runs Sept. 1 through Nov. 30, requires taxpayers who owe money to pay their taxes and interest, but waives 90 percent of the penalty.

"It's a way to speed up cash flow," Gerard said. "It's a very attractive opportunity for taxpayers."

Lawmakers approved the initiative as part of the $5.8 billion, two-year state budget passed earlier this year. During another tough budget period in 2003, the state ran a tax amnesty program that allowed those with tax liabilities to pay in full, plus half the interest and with no penalty.

That program brought in $37 million.

This time around, the program is more modest but is still designed to encourage taxpayers, regardless of the type of tax owed, to catch up.

The state is planning to send notices in early September to those who owe money that explains the program and spells out how much should be paid by the Nov. 30 deadline, Gerard said.

For those who can't afford to pay the full amount, Gerard said the state will work with them to apply the program to as much of their liability as possible.

"We will work out a way for them to pay," he said.

More information on the program can be found on the Maine Revenue Services Web site or by calling 624-9595.

Susan Cover -- 620-7015

scover@centralmaine.com

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