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Your Rights As A Taxpayer
www.maine.gov/revenue
In 2011, the First Regular Session of the 125th Legislature enacted new law impacting procedures governing your rights as a taxpayer, including the procedure for reconsideration decisions. The new law takes effect July 1, 2012. The procedures outlined in this brochure are, therefore, only effective for May and June 2012.
Most people understand they have a duty to pay all taxes imposed by the State of Maine when taxes are due. Many people, however, do not know that the law gives them some important rights as taxpayers and places important obligations on the State in its dealings with them.
We at Maine Revenue Services believe that everyone benefits when taxpayers know their rights under the tax laws. To help you understand what you may expect of us, we have prepared this brochure describing your rights and our obligations.
Our goal is to collect all taxes that are legally due to the State of Maine. You can help us achieve that goal by understanding your rights as a taxpayer. Please read the following information carefully and feel free to call us if you have any questions. You’ll find our contact information at the end of this brochure.
What do I do if I think I’m entitled to a refund?
If you believe that you have overpaid a tax, you must request a refund in writing and file an amended return within the time period allowed by law (generally three years from the date of overpayment). If we deny your request, you may ask for reconsideration under the same procedure used for assessments.
I’ve received an assessment, but I don’t agree that I owe the tax. What should I do?
You have sixty days from the day you receive an assessment to ask us to reconsider our decision. See Title 36 of the Maine Revised Statutes, section 151. You must make this request in writing and make sure it is postmarked or delivered before the sixty day time period runs out. Be sure to clearly state the reason for your request and whether or not you want a conference. Your request should be mailed to the Maine Revenue Services division that made the assessment or to:
Division Reconsideration
Maine Revenue Services
PO Box 1060
Augusta, Maine 04332-1060
Can I ask to have interest waived?
Yes. The State Tax Assessor may waive interest in certain unusual circumstances. However, these cases are very rare. You can ask for reconsideration of interest charges by filing a petition for reconsideration in the same manner as filing for reconsideration of tax, as explained above.
Can I ask to have penalties waived?
Yes. The State Tax Assessor must waive penalties on a showing of reasonable cause as provided by 36 MRSA § 187-B (7). You can ask for reconsideration of penalty charges by filing a petition for reconsideration in the same manner as filing for reconsideration of tax and interest, as explained above.
After I file my request for reconsideration, do I still have to pay the tax?
No. Ordinarily, you don’t have to pay the tax while your case is under review by us or by the court system. We will not attempt to collect the tax while your case is under appeal.
However, if you have received a special kind of assessment called a jeopardy assessment, then you must pay the requested amount, or file a bond or other security, in order to prevent immediate collection proceedings. You may still ask for reconsideration within sixty days as with any other tax assessment.
If it is finally determined that you owe the tax, you will owe additional interest and may owe additional penalties if you did not pay the tax when first assessed. You can avoid interest and penalties being added to your bill by working with us to decide your case as quickly as possible. For example, if you have any documents that you want us to consider, you should attach copies of them to your reconsideration request. You should also be as specific as possible in explaining why you believe the assessment is not correct.
Can I ask for a conference?
Yes. If you think a conference would be helpful, just ask for one in your letter requesting reconsideration of the tax assessment. A conference may be held in person or by telephone. We will try to schedule a conference at a convenient time for you, and we will always give you at least ten working days’ notice of the time and place of the conference.
Is a conference required?
No. Conferences are useful when we must go over documents with you, but a decision will be made based on the information available, including any information that you provided with your request. However, if you wish to meet with us, you must ask for a conference in your request to reconsider our decision.
What should I expect at a conference?
A conference is your opportunity to give us any information you believe would be helpful in reconsidering your case. You are also welcome to ask us questions about how we determined your tax liability. Our representatives might ask you some questions or ask you to provide more information if they believe the additional information is necessary to reach a correct decision.
May I bring someone with me?
Yes. You may bring an attorney, an accountant, a bookkeeper or any other representative you believe would be helpful to you during a conference. To safeguard the confidentiality of your tax information, Maine law requires that you provide us with a document, which must be signed by you, authorizing us to communicate with your representative regarding your tax matter. You may use the Maine Revenue Services Power of Attorney form (Form 2848ME available at www.maine.gov/revenue/forms then select “General Forms”), although a simple written letter of authorization is sufficient.
May I record a conference?
Yes. At any time you meet with one of our representatives concerning the determination or collection of tax, you may at your own expense make an audio recording of the interview. If you want to make a recording, you must let us know before the conference.
What if I decide that I need to talk to an attorney or accountant after a conference has started?
You can stop a conference at any time if you want to consult with an attorney, accountant or other representative. We will then select a date within the next ten working days to finish the conference.
Who makes the decision on my case after I have explained my position to you?
A representative of the State Tax Assessor in the division that made the assessment will be assigned to review your petition and any additional evidence presented and render a reconsideration decision, subject to the direction of the Assessor.
How will I be notified of your decision?
We will mail you or your representative a letter setting forth the issues we have considered and explaining the basis for our decision.
What can I do if your decision says that I still owe the tax?
You may contact Maine Revenue Services to make arrangements to pay the amount due. If you still don’t agree that you owe the tax, you have thirty days from the date you receive our decision to appeal your case to the Maine Superior Court. Proceedings before the Superior Court are governed by court rules. At the Superior Court level, your case essentially becomes a lawsuit filed by you against the State Tax Assessor, who will be represented by the Maine Attorney General.
How can I stop interest from accruing?
At any point during a reconsideration and appeal process, you may pay the tax, penalty, and interest that we claim is due. If all the tax and interest is paid, you will not owe us any more interest on the tax after the date of payment. If we or the courts finally determine that you do not owe the tax, we will refund your payment to you with interest.
If I miss the sixty-day deadline to ask for reconsideration, can I still ask you to cancel the assessment?
Yes. You have three years from the date of the assessment to request the State Tax Assessor to cancel or abate your assessment. See 36 MRSA § 142. The Assessor will do so if a tax has been levied illegally or in other situations, if justice requires. There is no right to appeal the decision if the Assessor declines to cancel or abate the assessment and collection efforts may proceed.
What happens if I don’t pay?
If tax is due, and you have no remaining appeal rights, you will receive a letter from us informing you that you have ten days to pay the full amount to avoid enforced collection. The letter will also explain your rights during the enforced collection process. See 36 MRSA § 171. Payment plan arrangements may be available.
What does enforced collection mean?
Enforced collection means that if you do not pay the required amount voluntarily, we can collect it from you by various methods, including seizing and selling your property. We can also attach wages and have professional licenses revoked.
Is all of my property subject to enforced collection?
No. There are certain items that we cannot seize and sell, and a portion of your wages is exempt from attachment.
What if I have not filed a required return?
If a return is filed after the due date, a late filing penalty is charged. The penalty is $25 or 10% of the tax due, whichever is greater. If a return is not filed after the State sends a formal written “demand notice” for the return, the penalty is 100% of the tax due (beginning October 1, 2011, the penalty is $25 or 25% of the tax due, whichever is greater). In addition, interest and penalty are charged for tax payments that are late. The penalty can be as much as 25% of the tax due. See 36 MRSA
§§ 186, 187-B.
I’ve been notified that I am scheduled for an audit. What records may the auditors examine?
Our auditors may examine any books and records, including electronic records, or other property that they believe will be helpful in determining your tax liability. The auditors will work with you to determine a convenient time for the audit and will tell you in advance which initial records you should arrange to have available. As the audit progresses, it may become necessary for the auditor to make additional requests for records needed for the completion of the audit. These requests will be made in a timely manner. See 36 MRSA
§§ 112(3) and (4) and MRS Rule 103.
Will the information in my records be kept confidential?
Yes. Information obtained from taxpayers is kept strictly confidential, unless release is otherwise authorized by law. See 36 MRSA § 191. In fact, the law imposes criminal penalties on any Maine Revenue Services employee who wrongfully inspects or divulges confidential information.
Where can I get more information?
At www.maine.gov/revenue or call:
General information: (207) 287-2076
Taxpayer Advocate: (207) 624-9649
Sales and Use tax: (207) 624-9693
Income/Estate tax: (207) 626-8475
Corporate tax: (207) 624-9670
Business, motor fuels,
special and industry
taxes: (207) 624-9609
Property tax: (207) 287-2013
Collections, payment arrangements:
Income tax (Maine): (800) 987-7735
(outside Maine): (207) 621-4300
Other taxes: (207) 624-9595
For email and mailing addresses, click on “Contact Us” at www.maine.gov/revenue.
Rev. 5/12
