Maine Taxing Information
If you fail to address your liability even after multiple notices, the state may choose to revoke, suspend, or deny issuance or renewal of your professional license or similar certification. Such actions will prevent you from practising. You will only be able to regain your certification by resolving your liability and achieving good standing with the State Tax Authority.
One form of enforced collection that the State may use to resolve your liability is a levy. A levy can be attached to any of your property, be it physical, or something like your bank accounts or wages, even third parties associated with your property.
Offer in Compromise
The Department of Revenue may, under particular conditions, accept a settlement of your liability for less than the full amount if it is found to be a compromise between your best interests and the State’s. You must be prepared to closely follow all terms and conditions given by the Department. Among these are your having filed all required tax returns, completed the application, and provided supplementary documentation.
As OICs are considered case-by-case, any attempts to request one without honest intent will be rejected.
If you are unable to pay your tax liability in full, the State may consider a request for a payment plan. Should they accept, penalties and interest will still accrue on whatever amount of your liability remains unpaid, even as you pay it off.
The State is obligated to protect its interests, so you will need to comply closely with the terms of any agreement you make, lest you incur further penalties or an enforced collection process.
Power of Attorney
While you may represent yourself before Revenue Services, you may also choose to have a qualified representative do so in your stead. This requires that you complete the appropriate documentation prior to any discussion of tax matters. A non-professional representative may require a witness or notarization of forms in order to qualify.
Priority One: Stopping Aggressive Enforced Collections
Reconsiderations and Appeals
If you disagree with the amount of tax you are assessed for, you may submit a request for reconsideration in writing promptly after receiving the assessment.
Additions to your total liability in the form of penalties and interest may, under some circumstances, be waived. Penalties can be waived if you are able to prove reasonable cause. Interest is far less commonly waived, but may be under rare circumstances.
If you fail to address your liability or default on a payment agreement, the State may file a lien against your property. Liens are a public claim against whatever they are attached to and serve to protect the State’s interests until your liability is resolved. Costs associated with filing a lien may be added to your liability.
Offer in Compromise
If you are unable to pay your liability, either in full or through a regular installment plan, you may be able to settle it for less than that full amount through an Offer in Compromise. The conditions that qualify you for an OIC are very particular, including the presence of serious doubt regarding the collectability of your liability, or proof that collection will result in economic hardship.
As the state is obligated to protect its interests, you will need to comply closely with any terms and conditions set forth upon the acceptance of an OIC.