In a major reversal, the IRS now says Mainers will have to pay federal taxes on $450 Winter Energy Relief payments that were given out to more than 800,000 residents early this year.
Maine’s Department of Administrative and Financial Services announced Tuesday that it objected to the reversal of the IRS guidelines that were originally published in August, and which stated that the payments would not be subject to federal taxes. State officials said the IRS verbally informed Maine Revenue Services on Dec. 7th that the payments would be federally taxed.
Department Commissioner Kirsten Figueroa objected to the change in a letter sent to the IRS Tuesday.
The payments are still exempt from state tax.
