Tax Alert

 

Maine Revenue Services Rulemaking Activity

Maine Revenue Services (MRS) is proposing to repeal Rule 150 (Joint Rules Governing Collection of Reciprocal Taxation of Motor Vehicles). The rule is proposed for repeal because it is obsolete and inoperative. The Maine Law Court found the statutory authority for the rule to be unconstitutional and the statutory authority for the rule was repealed effective April 1994. Rule 150 can be found on the Secretary of State's web site at maine.gov/sos. Comments are due by December 23, 2005 and should be directed to John Sagaser, Esq. General Counsel, Maine Revenue Services, 24 State House Station, Augusta Maine 04333.

Maine Revenue Services Announces New Director Of Property Tax Division

MRS is pleased to announce that David Ledew has been selected as the new director of the Property Tax Division effective November 21, 2005. Dave has a B.S. in Business Administration from the University of Maine, Orono, and 27 years experience working here at MRS. Dave worked in Compliance for 8 years before moving over to Property Tax in 1987 as the Chief of Training and Certification for municipal assessors. In 1994, he was promoted to Supervisor of Municipal Services and served in that capacity until his appointment as Acting Director.

2005 Maine Income Tax Forms

Downloadable versions of various 2005 income tax forms and instructions are now available on the Maine Revenue Services web site.

One of the most significant changes on the 2005 forms is an additional line for the Domestic Production Activities Deduction add-back (see 1040ME, Schedule 1, line 1d and 1120ME, line 4e). Note that line 1g of 1040ME, Schedule 1 (Other tax additions) now includes the add-back for the taxpayer’s share of a fiduciary adjustment. See instructions for a full list of other add-backs required to be reported on this line.

Another significant change for 2005 is to the application of the corporate apportionment factor for multistate corporations with Maine taxable income. The apportionment factor is calculated in the same manner as in past years, but now it is applied to the gross tax of the business rather than the adjusted federal taxable income. See the Maine Corporate Income Tax booklet (Form 1120ME) for more information.

Additionally, the following 2005 forms will be posted soon:

  • Minimum tax worksheet Instructional pamphlet for Schedule 3
  • Instructional pamphlet for Schedule NR Instructional pamphlet for Schedule NRH
  • 1120B-ME franchise tax return 1041ME fiduciary income tax return
  • Form 1041EXT-ME Fiduciary extension payment voucher
  • Form 1041ME, Schedules A & NR Adjustments to tax/Nonresident apportionment

Pine Tree Development Zones - Final Guidance Documents/Bulletins

MRS has completed a final income tax guidance document and sales tax bulletin providing information on Pine Tree Development Zone tax benefits. See below for links to each document.

(www.state.me.us/revenue/incomeestate/guidance/documents/ptdz_guidance_nov05_000.pdf)

(www.maine.gov/revenue/salesuse/Bull52.pdf)

In addition, the Department of Economic and Community Development (DECD) plans to release the final rule regarding Pine Tree Developments soon. This document and related material can be found on the DECD web site at (www.mainebiz.org/why_maine/pine_tree_zones.asp)

Department
Telephone Numbers
FAX Numbers
E-mail Addresses
Taxpayer Service Center
(207) 626-8475
(207) 287-5855
Audit
(207) 822-0450
(207) 822-0453
Central Registration
(207) 621-5129
(207) 287-3733
division.uctax@maine.gov
Collections & Compliance
(207) 624-9595
(207) 287-6627
compliance.tax@maine.gov
Corporate Tax
(207) 624-9670
(207) 624-9694
corporate.tax@maine.gov
E-file Help Desk (1040 ONLY)
(207) 624-9730
(207) 287-6628
efile.helpdesk@maine.gov
Electronic Funds Transfer
(207) 624-5625
(207) 287-6975
efunds.transfer@maine.gov
Estate & Fiduciary Income Tax
(207) 626-8480
(207) 624-9694
estatetax@maine.gov
Fuel Tax
(207) 624-9609
(207) 287-6628
fuel.tax@maine.gov
Forms Request Line
(207) 624-7894
Individual Income Tax Assistance
(207) 626-8475
(207) 624-9694
income.tax@maine.gov
Insurance Premium Tax
(207) 624-9753
(207) 624-9694
Payment Plan/Income Tax
(207) 621-4300
(207) 621-4328
compliance.tax@maine.gov
Payment Plan/Other
(207) 624-9595
(207) 287-6627
compliance.tax@maine.gov
Practitioners’ Hotline
(207) 626-8458
(207) 624-9694
Property Tax
(207) 624-5600
(207) 287-6396
prop.tax@maine.gov
Public Communications
(207) 626-8478
(207) 624-9694
Sales Tax
(207) 624-9693
(207) 287-6628
sales.tax@maine.gov
Tax Clearance Letters
(207) 624-9628
(207) 287-6627
Office of Tax Policy
(207) 624-9789
(207) 287-3618
Taxpayer Advocate
(207) 624-9649
(207) 287-3618
taxpayer.advocate@maine.gov
NexTalk
1-888-577-6690
Withholding Tax
(207) 626-8475
(207) 624-9694
withholding.tax@maine.gov
Tax Violations Hot Line
(207) 624-9600

This publication is designed to keep taxpayers, tax practitioners and the general public informed of developments, problems, questions and matters of general interest concerning Maine tax law, policy and procedure. The articles in this newsletter are not designed to address complex issues in detail, and they are not a substitute for Maine tax laws and/or regulations

Suggestions for the Tax Alert?

Please contact: Public Communications (207) 626-8478
Maine Revenue Services
24 State House Station
Augusta, Maine 04333-0024