As part of the most recent budget legislation, the Maine Legislature has
enacted The Maine Tax Amnesty Program. Under the Program, taxpayers have
the chance to satisfy tax debts, file missing returns, and disclose unreported
tax liabilities without of criminal prosecution. As an additional benefit,
those who take advantage of the Program and owe Maine taxes will have to pay
only the tax plus one half the interest due. The remaining interest and
all the penalties will be waived.
If you did not file your April 2003 Sales Tax, it is eligible.
If you did
not file or pay your 2001 Maine Individual Income Tax, you are eligible.
The Program also applies to those who are currently on payment plans for
back taxes.
You may apply for amnesty for several different types of tax, and you may
also apply for amnesty for more than one tax period. If you have not previously
filed a return for the periods in question or you are filing an amended tax
return, you must fill out a return and submit it with your Pre-Amnesty or
Amnesty Application and payment.
According to Maine Revenue Services, your
participation in the program will be kept confidential and will not increase
your chances of being audited. In addition, your participation will not be
reported to the IRS.
You can be denied amnesty if you are seeking relief on
periods relating to a criminal case or prosecution or have outstanding civil
warrants or judgments on the tax debt. You can also be denied if you do not send
a payment with your Application, or if your payment check is returned for
insufficient funds. You may reapply during the amnesty period and will be
granted amnesty if you then comply with the requirements.
The Program is only available for a limited time period. The Program
will run September 1, 2003 – November 30, 2003. Before September, you may
apply for a Pre-Amnesty Settlement on the same terms.
For more information,
contact Michael L. Sheehan or James M. Hanley at Preti Flaherty’s Portland
office: 207-791-3000.
The Program is available to any individual or
business subject to Maine taxes, provided the individual or business has not
been convicted or is not currently being prosecuted for tax offenses and has no
outstanding civil warrants or judgments for the tax debt. All tax
liabilities or tax returns that were required to be filed on or before August
31, 2003 are eligible.
