Sec. 1. 36 MRSA §187-C is enacted to read:

§187-C.__Suspension of interest and penalties during bankruptcy

The accumulation of interest and penalties imposed under this Title for nonpayment or late payment of taxes are suspended from the date the taxpayer files a petition for relief under the United States Bankruptcy Code until final distribution of assets by the bankruptcy trustee.

SUMMARY

This bill provides for the suspension of interest and penalties for nonpayment or late payment of taxes when the taxpayer files for bankruptcy.