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18 DEPARTMENT
OF ADMINISTRATIVE AND FINANCIAL SERVICES
125
Chapter 104: ELECTRONIC
FILING OF
SUMMARY: This
rule describes the requirements for mandatory electronic filing of
certain
OUTLINE OF CONTENTS:
.01 Definitions
.02 Mandatory participation - individual
income tax returns
.03 Mandatory participation - sales, use and
service provider tax returns
.04 Mandatory participation – income tax
withholding, competitive skills scholarship fund and unemployment compensation
insurance returns
.05 Request for waiver from mandatory
participation
.06 Penalties
.01 DEFINITIONS
As used in this rule, the following
terms have the following meanings:
A. “Electronic Filing” or “Electronic
data submission” means the use of a computer, internet, or any other means
of electronic submission of data to transmit return or document information in
a manner prescribed by the State Tax Assessor.
Specifications for the manner of the transfer of data may be found on
the Maine Revenue Services website or by contacting Maine Revenue Services.
B. “Original
Maine tax return” means Maine individual
income tax returns, sales/use/service provider tax returns, or income tax
withholding returns (Forms 941ME and 941/ C1ME) and annual reconciliation of
Maine income tax withheld (Form W-3ME), but does not include amended versions
of these returns.
C. “Person” means an individual, firm, partnership, association,
society, club, corporation, financial institution, estate, trust, receiver,
assignee or any other group or combination acting as a unit, other than the
State or Federal Government or any political subdivision or agency of either
government.
D. “Prepares” means completes original
E. “Tax
return preparer” means a person who prepares
original
.02 MANDATORY
PARTICIPATION - individual income tax returns
A. For returns filed in calendar year 2008,
a tax return preparer must file by electronic data submission all original
Maine tax returns for individual income tax that are eligible for electronic
filing, except:
1. Where for calendar year 2007 the tax
return preparer prepared fewer than 200 original
2. Where the taxpayer refuses to allow the
return to be filed by electronic data submission and the tax return preparer
notes the refusal in the taxpayer’s records; or
3. Where the tax return preparer has been
granted a waiver from mandatory participation under section .05.
B. For returns filed in calendar year 2009, a tax return
preparer must file by electronic data submission all original Maine tax returns
for individual income tax that are eligible for electronic filing, except:
1. Where for calendar year 2008 the tax
return preparer prepared fewer than 100 original
2. Where the taxpayer refuses to allow the
return to be filed by electronic data submission and the tax return preparer
notes the refusal in the taxpayer’s records; or
3. Where the tax return preparer has been
granted a waiver from mandatory participation under section .05.
C. For returns filed in calendar year 2010, a tax return
preparer must file by electronic data submission all original Maine tax returns
for individual income tax that are eligible for electronic filing, except:
1. Where
for the previous calendar year, the tax return preparer prepared fewer than 50
original
2. Where
the taxpayer refuses to allow the return to be filed by electronic data
submission and the tax return preparer notes the refusal in the taxpayer’s
records; or
3. Where
the tax return preparer has been granted a waiver from mandatory participation
under section .05.
D. For returns filed in calendar year 2011 or any
subsequent calendar year, a tax return preparer must file by electronic data
submission all original Maine tax returns for individual income tax that are
eligible for electronic filing, except:
1. When
for the previous calendar year, the tax return preparer prepared 10 or fewer original
Maine tax returns for individual income tax that are eligible for electronic
filing;
2. When
the taxpayer refuses to allow the return to be filed by electronic data
submission and the tax return preparer notes the refusal in the taxpayer’s
records; or
3. When
the tax return preparer has been granted a waiver from mandatory participation
under section .05.
.03 MANDATORY
PARTICIPATION – sales, use and service provider tax returns
A. For returns filed in calendar year 2008, a person
preparing original Maine tax returns for sales, use or service provider tax
with a tax liability of $200,000 or more for any one tax for the 12-month
period ending September 30, 2007, must file all the original Maine tax returns
for sales, use or service provider tax by electronic data submission.
B. For returns filed January 1, 2009 through March 31,
2009, a person preparing original Maine tax returns for sales, use or service
provider tax with a tax liability of $100,000 or more for any one tax for the
12-month period ending September 30, 2008, must file all the original Maine tax
returns for sales, use or service provider tax by electronic data submission.
C. A person preparing original Maine tax returns for
sales, use or service provider tax that are required to be filed monthly must
file all the original Maine tax returns for sales, use or service provider tax
by electronic data submission effective for returns filed on or after April 1,
2009 and covering tax periods beginning on or
after that date.
D.
A person
preparing original Maine tax returns for sales, use or service provider tax
that are required to be filed quarterly must file all the original Maine tax
returns for sales, use or service provider tax by electronic data submission
effective for returns filed on or after January 1, 2010 and covering tax
periods beginning on or after that date.
E.
A person
preparing original Maine tax returns for sales, use or service provider tax
that are required to be filed on a semi-annual basis must file all the original
Maine tax returns for sales, use or service provider tax by electronic data
submission effective for returns filed on or after January 1, 2011 and covering
tax periods beginning on or after that date.
F. A
person preparing original Maine tax returns for sales, use or service provider
tax must file all the original Maine tax returns for sales, use or service
provider tax by electronic data submission effective for returns filed on or
after January 1, 2012 and covering tax periods beginning on or after that date.
.04 MANDATORY
PARTICIPATION - income tax withholding, competitive skills scholarship fund and
unemployment compensation insurance returns
A. For
returns filed for calendar year 2008 withholding:
1. Employers
with 75 or more employees in 2008 that are subject to
2. Third
party filers or payroll processors, as defined in 10 M.R.S.A., chapter 222, of
quarterly Maine withholding returns for an employer with 75 or more employees
in 2008 that are subject to Maine income tax withholding must electronically
file all original Maine quarterly tax returns and annual reconciliation of Maine
income tax withholding for 2008.
3. Third
party filers or payroll processors, as defined in 10 M.R.S.A., Chapter 222,
with 75 or more client employers in 2008 that are required to file Maine income
tax withholding returns under 36 M.R.S.A., chapter 827, or make competitive
skills scholarship fund or unemployment compensation insurance payments under
26 M.R.S.A., chapter 13, subchapters 5 and 7, must electronically file all original
Maine quarterly tax returns and annual reconciliation for Maine income tax
withholding of 2008.
4. Non-wage
payers with 75 or more payees in 2008 that are subject to Maine income tax
withholding under 36 M.R.S.A. §5255-B must electronically file all original
Maine quarterly tax returns and annual reconciliation for Maine income tax
withholding of 2008.
5. Pass-through
entities with 75 or more nonresident members in 2008 that are subject to
pass-through withholding on
B. For
returns filed for withholding, competitive skills scholarship fund and
unemployment compensation insurance for the first calendar quarter in 2009:
1. Employers
with 50 or more employees in the first calendar quarter in 2009 that are
subject to
2. Third
party filers or payroll processors, as defined in 10 M.R.S.A., chapter 222, of
quarterly Maine withholding returns for an employer with 50 or more employees the
first calendar quarter in 2009 that are subject to Maine income tax withholding
must, for that calendar quarter, electronically file all original Maine tax
returns including the annual reconciliation for Maine income tax withholding.
3. Third
party filers or payroll processors, as defined in 10 M.R.S.A., chapter 222,
with 50 or more client employers in the first calendar quarter in 2009 that are
required to file Maine income tax withholding returns under 36 M.R.S.A., chapter
827, or make competitive skills scholarship fund or unemployment compensation
insurance payments under 26 M.R.S.A., chapter 13, subchapters 5 and 7, must,
for that calendar quarter, electronically file all original Maine quarterly tax
returns, including the annual reconciliation of Maine income tax withholding.
4. Non-wage
payers with 50 or more payees in the first calendar quarter in 2009 that are
subject to Maine income tax withholding under 36 M.R.S.A. §5255-B must, for
that calendar quarter, electronically file all original Maine quarterly tax
returns including the annual reconciliation of Maine income tax withholding.
5. Pass-through
entities with 50 or more nonresident members in the first calendar quarter in
2009 that are subject to pass-through withholding on Maine-source income must,
for that calendar quarter, electronically file all original
C. For
returns filed for withholding, competitive skills scholarship fund and
unemployment compensation insurance for the second, third and fourth calendar
quarters in 2009:
1. Employers
with 10 or more employees in the second, third and fourth calendar quarters in
2009 that are subject to
2. Third
party filers or payroll processors, as defined in 10 M.R.S.A., chapter 222, of
quarterly Maine withholding returns for an employer with 10 or more employees
in the
second, third and fourth calendar quarters in 2009 that are
subject to Maine income tax withholding must, for those calendar quarters,
electronically file all original Maine quarterly tax returns and annual
reconciliation of Maine income tax withholding.
3. Third
party filers or payroll processors, as defined in 10 M.R.S.A., chapter 222,
with 10 or more client employers in the second, third and fourth calendar quarters in
2009 that are required to file Maine income tax withholding
returns under 36 M.R.S.A., chapter 827, or make competitive skills scholarship
fund or unemployment compensation insurance payments under 26 M.R.S.A., chapter
13, subchapters 5 and 7, must, for those calendar quarters, electronically file
all original Maine quarterly tax returns and annual reconciliation of Maine
income tax withholding.
4. Non-wage
payers with 10 or more payees in the second, third and fourth calendar quarters in
2009 that are subject to Maine income tax withholding under 36
M.R.S.A. §5255-B must, for those calendar quarters, electronically file all
original Maine quarterly tax returns and annual reconciliation of Maine income
tax withholding.
5. Pass-through
entities with 10 or more nonresident members in the second, third and fourth calendar
quarters in 2009 that are subject to pass-through withholding
on Maine-source income must, for that calendar year, electronically file all
original
D. For
returns filed for calendar year 2010 withholding, competitive skills
scholarship fund and unemployment compensation insurance:
1. Employers
with 5 or more employees in 2010 that are subject to
2. Third
party filers or payroll processors, as defined in 10 M.R.S.A., chapter 222, of
quarterly Maine withholding returns for an employer with 5 or more employees in
2010 that are subject to Maine income tax withholding must electronically file
all original Maine quarterly tax returns and annual reconciliation for Maine
income tax withholding of 2010.
3. Third
party filers or payroll processors, as defined in 10 M.R.S.A., Chapter 222,
with 5 or more client employers in 2010 that are required to file Maine income
tax withholding returns under 36 M.R.S.A., chapter 827, or make competitive
skills scholarship fund or unemployment compensation insurance payments under
26 M.R.S.A., chapter 13, subchapters 5 and 7, must electronically file all
original Maine quarterly tax returns and annual reconciliation for Maine income
tax withholding of 2010.
4. Non-wage
payers with 5 or more payees in 2010 that are subject to Maine income tax
withholding under 36 M.R.S.A. §5255-B must electronically file all original
Maine quarterly tax returns and annual reconciliation for Maine income tax
withholding of 2010.
5. Pass-through
entities with 5 or more nonresident members in 2010 that are subject to
pass-through withholding on Maine-source income must electronically file all
original
E. For
returns required to be filed for calendar years after 2010 with respect to withholding,
competitive skills scholarship fund and unemployment compensation insurance:
1. Employers
in any calendar year after 2010 that are registered for
2. Third
party filers or payroll processors, as defined in 10 M.R.S.A., chapter 222, of
quarterly
3. Third
party filers or payroll processors, as defined in 10 M.R.S.A., chapter 222,
with any client employers in any calendar year after 2010 that are required to
file Maine income tax withholding returns under 36 M.R.S.A., chapter 827, or
make competitive skills scholarship fund or unemployment compensation insurance
payments under 26 M.R.S.A., chapter 13, subchapters 5 and 7, must, for that
calendar year, electronically file all original Maine quarterly tax returns and
annual reconciliation of Maine income tax withholding.
4. Non-wage
payers with any payees in any calendar year after 2010 that are subject to
Maine income tax withholding under 36 M.R.S.A. §5255-B must, for that calendar
year, electronically file all original Maine quarterly tax returns and annual
reconciliation of Maine income tax withholding.
5. Pass-through
entities with any nonresident members in any calendar year after 2010 that are
subject to pass-through withholding on Maine-source income must, for that
calendar year, electronically file all original
.05 REQUEST
FOR WAIVER FROM MANDATORY PARTICIPATION
The
State Tax Assessor shall waive the requirement to participate where the
Assessor determines that the requirement causes undue hardship. A person subject to mandatory participation in
sections .02, .03 or .04 may request a waiver from participation by submitting
a waiver request in writing that clearly indicates the tax-type for which the
waiver is requested, the undue hardship that the person states will be caused
by complying with the electronic filing requirements, and the date by which the
person intends to be in compliance. A
determination by the State Tax Assessor under this section is subject to the
administrative appeal provisions of 36 M.R.S.A. §151.
.06 PENALTIES
Failure
to file returns electronically as required by this rule is subject to the
penalty under 36 M.R.S.A. §187-B (5-B). Penalties
shall be waived or abated for reasonable cause pursuant to 36 M.R.S.A.
§187‑B(7).
STATUTORY AUTHORITY:
36 M.R.S.A. §193.
EFFECTIVE DATE:
AMENDED:
November 21, 2008
March 1, 2010 – filing 2010-49
October 31, 2010 – filing 2010-522