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Maine Revenue Services is pleased to announce that PINs and signature documents are no longer required for E-file or I-file beginning with 2004 Maine individual income tax returns. Under Maine law, electronic transmittal itself of returns is considered the signature. Taxpayers who otherwise would have received a PIN will be notified of this change by mail in early January.
Maine Revenue Services encourages the use of electronic filing and payment options. Taxpayers who file electronically and use the direct deposit option will receive their refunds in as few as 7 days from the date of transmittal. Taxpayers with a tax underpayment can choose the delayed debit option to file early but have the funds withdrawn from their accounts on April 15th for a paperless payment transaction. See our website for more details. www.maine.gov/revenue/netfile/gateway2.htm
New On Our Web Site
Maine Revenue Services has two new guidance documents posted to the web site:
Go to www.maine.gov/revenue/incomeestate to download the brochures.
Not so new, but still important, is the Guidance to Residency Status brochure. This document answers many of the taxpayer’s questions regarding, and provides several examples of, residency status, and is also available on our web site.
New Alternative Minimum Tax Computation
There have been substantial changes to the way the Maine AMT is calculated. New individual AMT worksheets are available now online and corporate AMT worksheets will be posted soon.
2004 Maine Income Tax Forms
Downloadable versions of the following 2004 forms and instructions are now on the Maine Revenue Services web site:
Note the following changes to these schedules and worksheets:
The following 2005 forms will be posted to our web site soon:
Year-end Reporting of Pass-through Entity Withholding
Form 1099ME is used to report Maine pass-through entity withholding for nonresident owners or beneficiaries. After the calendar year and before February 16, the pass-through entity must issue Form 1099ME to each owner for whom Maine income tax was withheld and sent to Maine Revenue Services with the Form 941P-ME. Form 1099- ME identifies the owner’s share of Maine income tax withheld by the entity for the calendar year.
MRS has received a number of 1099ME forms that were not properly completed. Please remember the following guidelines when preparing this form:
Exemptions from Maine Pass-through Entity Withholding
During 2004, many pass-through entities received exemptions from the recently enacted requirement to withhold from the entity’s Maine source income of nonresident owners. An entity that has either a conditional or requested exemption for any of its owners must renew the exemption each year. Consequently, the exemptions received during 2004 will soon expire. A pass-through entity that had a conditional or requested exemption must file a new application for 2005 or begin withholding. Applications for 2005 will be mailed to pass-though entities that received either a conditional or requested exemption in 2004. Additional applications will soon be available on our web Site. For more information on pass-through entity withholding go to: http://www.maine.gov/revenue/ptwith.htm
Note: The above link is no longer active. For more information about pass-through entity withholding, go to www.maine.gov/revenue/incomeestate.
Payroll Processor Update
Effective January 1, 2005, the payroll processor registration process maintained by Maine Revenue Services will be transferred to the Office of Consumer Credit Regulation. For more information see the OCCR web site: http://www.maine.gov/pfr/ccp/ccp_index.htm
Effective January 30, 2005, payroll processors may not designate themselves as sole recipients of notices from state or federal tax agencies. Employers will be required to sign a disclaimer should they elect to use their processor's address. The disclaimer form is currently in development and will be available soon.
Year-end Reporting for Maine Payroll Withholding
Persons required to withhold Maine income tax from payroll or other distributions, except pass through entity withholding, must file an annual reconciliation return, Form W-3ME by February 28. If Maine withholding for each employee or payee was provided on the quarterly withholding returns for each quarter of 2004, the requirement to submit this data with Form W-3ME is waived. If the amount of Maine withholding for each employee or payee was not provided each quarter during 2004, the data must be submitted with Form W-3ME. Please note that reporting the amount of income withholding for each individual on the Wage & Withholding Listing is no longer optional. For more detailed information on when Maine withholding data must be reported with Form W-3ME, see the revised instructions for the 2005 Form W-3ME (due February 2006), which will be posted to the MRS Web site by December 31, 2004.
The 2005 Maine withholding tables have been posted to the MRS Web site at http://www.maine.gov/revenue/forms/ and paper copies will be mailed very soon to registered employers.
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