Maine Taxing Information
If you hold a professional license, permit or certificate of authority that allows you to conduct business in the state and you have not filed or paid your taxes after receiving at least two notices you may have your license, permit or certificate revoked, suspended or renewal denied. In order to get your certificate reinstated or renewed, you will need file and pay all taxes due and provide a certificate issued by the State Tax Authority indicating that you are in good standing.
A levy is an administrative power used to collect delinquent taxes by the legal seizure of property that is used to satisfy the debt. If you receive a notice of levy you have 10 days from the date of the notice to pay the tax. After 10 days the State Tax Assessor may collect the tax by levy upon personal property including, but not limited to, real estate, automobiles, boats, wages and bank accounts.
Priority One: Stopping Aggressive Enforced Collections
When a taxpayer's employer receives a notice of levy, the employer is required by law to surrender the percentage of wages indicated for each pay period until notified that the delinquency has been satisfied.
Expenses related to any levy and subsequent sale may be taken from the proceeds of the sale before applying the proceeds to the delinquent account.
You also have a 90-day period to contest the assessment by filing suit in chancery court. If you have requested an informal hearing, the 90-day period will resume running after a decision regarding any adjustments has been made. You are not required to request an informal conference before contesting the assessment in court.
Offer in Compromise
The State Tax Assessor has the authority to settle, or compromise, tax liabilities owed to the state. Many factors will be considered when determining whether or not to accept an Offer in Compromise (OIC). In order to be considered for an offer you must meet the following requirements:
- You must have filed all tax returns due or be able to show why they do not need to be filed
- If your offer is based on doubt as to liability, you must provide a detailed explanation and documents that support your case.
- If your offer is based on doubt as to collectability, you must provide a complete and accurate personal and/or business financial statement and identify all income, assets and liabilities.
Frivolous offers or offers with the intent to delay collection will be rejected immediately. Offers are considered on a case-to-case basis and among other factors, MRS will consider whether the taxpayer has a history of non-compliance or if there is evidence that the taxpayer may be able to pay the liability by liquidating assets or implementing a payment plan.
If you are unable to pay your tax bill in its entirety, you may be able to establish a payment plan to pay off the debt over an extended period of time. You should pay as much as you can since penalties and interest will continue to accrue on the unpaid amount, even with a payment plan in place. Establishing a payment plan will usually prevent enforced collection activity against you.
If you do not file your tax returns on time or do not pay your taxes on time you will be assessed penalties, in addition to interest, that will be added to your tax liability.
Failure to File: penalty is $25 or 10% of the tax due, whichever is greater. If you have received a demand notice from the State Tax Assessor and have not filed your returns within 30 days of receipt of the notice the failure-to-file penalty becomes 100% of the taxes due.
Failure to Pay Timely: penalty for failing to pay your tax liability on time is 1% of the outstanding debt for each month or fraction of a month that the liability remains unresolved, to a maximum of 25#&37;.
Power of Attorney
You may authorize someone to represent you before Maine Revenue Services regarding your tax matters by filing Form 2848-ME, Power of Attorney and Declaration of Representative. To authorize someone other than an attorney, certified public accountant or enrolled agent, you will need a witness or notarization of your signature.
Reconsiderations & Appeals
If you have received an assessment but do not agree with the amount of tax that you owe, you have 30 days to request that the State Tax Assessor reconsider the decision. The request must be made in writing and delivered or postmarked before the thirty-day period runs out. During the reconsideration or appeal process, interest and penalties will continue to accrue on your liability.
Can penalties be waived?
The State Tax Assessor may waive penalties if reasonable cause is provided. To request a reconsideration of penalty charges you must file a petition in writing within 30 days of the assessment.
Can interest be waived?
While it is rare for the State Tax Assessor to waive interest, it may be possible to waive interest charges in certain unusual circumstances. You have 30 days from the date of the assessment to request a reconsideration of the interest charges. You must make the request in writing and have it delivered or post-marked before the 30-day period runs out.
If, after the reconsideration, it has been determined that you still owe taxes, you have 30 days from the date of the decision to appeal your case to the Maine Superior Court. If the tax is due and you have no remaining appeal rights, you will receive a letter giving you 10 days to pay the liability before enforced collection processes begin.
If any tax that is due is not paid, and all administrative or judicial reviews have been exhausted, the assessor may file a notice of lien, specifying the amount of tax, interest, penalties and costs due. A tax lien is a public recording of the state's interest on all property, whether real or personal, owned or acquired by the taxpayer. A lien can negatively affect credit as well as the ability to sell or purchase real estate and may be enforced by seizure and sale of the property. Any recording fees or costs associated with the filing of the notice of lien will be added to the taxpayer's liability.
We strive to save our clients money and time, while alleviating stress. Just as there are many different tax related problems, there are many options for
tax resolution. Call us at 888-589-0955 for a free consultation. In a few minutes we will help you to better assess what options are best
for your unique situation.