Code of Maine Rules
18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES
125 - BUREAU OF REVENUE SERVICES
Chapter 102 - ELECTRONIC FUNDS TRANSFER (EFT)
Section 125-102-.10 - INTEREST AND PENALTIES

Universal Citation: 18 ME Code Rules ยง 125-102-.10

Current through 2024-38, September 18, 2024

A. Generally. Payments made by EFT are subject to the interest and penalty provisions of 36 M.R.S., including §§ 186, 187-A, and 187-B.

B. Insufficient funds. EFT deposits to a designated Maine State Government bank account that are reversed by the State's depository bank due to insufficient funds in the originator's account are subject to the insufficient funds penalty provided by 36 M.R.S. §187-B(5). When a payment is returned for insufficient funds due to a change in financial institution or bank account number by the taxpayer, the insufficient funds penalty will be imposed where the taxpayer has not followed the provisions of this rule. In circumstances where the State has changed financial institutions or depository bank account numbers, payments returned for insufficient funds will incur the insufficient funds penalty when MRS has notified the taxpayer in writing of the change.

C. Failure to remit electronically. A taxpayer that is required to remit taxes via EFT that fails to do so is liable for the EFT penalty pursuant to 36 M.R.S. § 187-B(5-A).

D. Waiver or abatement of penalties. A taxpayer may request waiver or abatement of a payment-related penalty for reasonable cause in accordance with 36 M.R.S. §187-B(7). The request must be made in writing within 60 days after receipt of notice of the assessment or determination in accordance with 36 M.R.S. §151. However, the insufficient funds penalty under 36 M.R.S. §187-B(5) is not subject to waiver or abatement. In addition, for purposes of the EFT program, the State Tax Assessor may make a finding of reasonable cause when the State Tax Assessor determines that the taxpayer has made a good-faith effort to remit payment in accordance with this rule. In determining whether a good-faith effort has been made, the State Tax Assessor will consider:

1. In the case of a taxpayer or service provider using the ACH credit method, whether written documentation is provided from company or bank records substantiating the taxpayer's belief that a timely payment was initiated;

2. In the case of a taxpayer or service provider using the ACH debit method, whether the person provides documentation of a payment confirmation number provided by MRS or its service provider showing that the payment was initiated timely;

3. Written documentation substantiating a bank error;

4. Whether an ACH or other system failure beyond the taxpayer's control occurred; and

5. Whether remittance to satisfy the underpayment is made in a timely manner.

E. Abatement of interest. Interest abatement will be considered on a case-by-case basis in accordance with 36 M.R.S. §186. Written request for abatement of interest must be submitted to the MRS division that issued the assessment of interest in accordance with 36 M.R.S. §151.

Disclaimer: These regulations may not be the most recent version. Maine may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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