Tax Alert

Maine Revenue Services Rulemaking Activity

Amendments to Rule 803, “Withholding Tax Reports and Payments.” Rule 803 was adopted in 1982 and most recently amended in 2003. This rule identifies income subject to Maine withholding and prescribes the methods for determining the amount of Maine income tax to be withheld from wages, non-wage payments, and pass-through entity income. It also explains the related reporting requirements, including mandated electronic filing.

The following changes were made to the Rule: Section .01, subsection E was revised to be more precise. Section .04(C)(1) was amended to reference recently passed legislation related to minimum taxability thresholds. Section .06 was revised to create a new paragraph (1) and to reflect changes to pass-through entity filing and withholding, to cite new tax rates, and to create new automatic exemptions to filing in subsection C(1). An application date was added to the Rule. Revisions were also made to make language more precise and to correct format, including renumbering, correcting references and titles.

A copy of Rule 803 can be found on the MRS website at www.maine.gov/revenue (select Laws & Rules).

2012 Maine Tax Forum

Maine Revenue Services is pleased to announce that the 16th Annual Maine Tax Forum is scheduled for Wednesday, November 7th and Thursday, November 8th, 2012 at the Augusta Civic Center.

The forum will cover Maine and federal tax developments and initiatives, Maine and federalcaselaw developments, an update on the new Office of Board of Tax Appeals (BOTA) and Taxpayer Advocate, updates fromMaineRevenue Services' Audit, Sales, Use and Special Fuel Tax Divisions andinformation on Maine Business Tax Incentives.

The Tax Forum provides CLE credits. Though MRS is not a qualified Internal Revenue Service Continuing Education provider,as in prior yearsCPE/CLE credits areavailable to CPAsand attorneys.

Seating for the 2012 Maine Tax Forum will not be limited. All paid applications will be acceptedbecause we will have overflow seatingin the North Wing on the 2nd floor at the Augusta Civic Center where the live presentations will be projected on screen.Seatinginboth rooms will be on the basis of first come/first served.The forum brochure (including application for registration) is available on the Maine Revenue Services web site atwww.maine.gov/revenue (select the"2012 Maine Tax Forum").

Also new this year,nopresentation materialswill bedistributedat the forum. Presentations provided to us will be postedonline and available to be downloaded by registered attendees before, duringand after the forum.FreeWifi will be available to forum attendees at the Augusta Civic Center.

Sales, Fuel and Special Tax

The sales, fuel and special tax division has published its annual General Information Bulletin, #102, summarizing legislative changes made this past spring. The bulletin can be seen at www.maine.gov/revenue/salesuse/salestax/bulletinssales.htm by scrolling down to the bottom of the page.

Maine Educational Opportunity Credit

The credit for educational opportunity is a component of the Job Creation Through Educational Opportunity program available after 2007. The purpose of the program is to provide an income tax credit for education-related costs for Maine residents who obtain an associate or bachelor’s degree from a Maine college, junior college or university and who, after graduation, live, work and pay taxes in Maine. The credit is available to qualifying graduates and employers making eligible education loan payments.

The credit is equal to the eligible education loan payments paid by the taxpayer during the tax year, limited to the benchmark loan payment amount. The benchmark loan payment amount is based on the in-state tuition and fees for the Maine Community College System or the University of Maine System, depending on whether the degree is an associate degree or a bachelor’s degree and depending on the year of graduation. See 20-A M.R.S.A., 12542 (2-A).

For individuals graduating in 2012, the monthly benchmark loan payment amounts are $65 for an associate degree and $342 for a bachelor’s degree. For individuals graduating in 2013, the monthly benchmark loan payment amounts are $65 for an associate degree and $356 for a bachelor’s degree.

For more information on who qualifies for the credit and how the credit is calculated, see the worksheet for the credit for educational opportunity at www.maine.gov/revenue/forms/ (select Worksheets for Tax Credits under the Income/Estate Tax category).

Department
Telephone Numbers
FAX Numbers
E-mail Addresses
Taxpayer Service Center
(207) 287-5838
(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) 287-8276
(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) 287-2013
(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