Current through 2024-38, September 18, 2024
A.
Forms,
statements and certificates
1.
Form 706ME. If an estate is required to file a Maine estate tax
return (Form 706ME), the personal representative must file the return with
required attachments within nine months of the decedent's date of death, unless
an extension of time to file has been granted by Maine Revenue Services. If the
estate is not required to file federal Form 706, but is required to file Form
706ME, a pro forma federal Form 706 must be attached to Form 706ME and must
include all of the information, schedules and attachments that would be
required if a federal Form 706 was required to be filed. A personal
representative must file a Form 706ME with a Certificate of Discharge of Estate
Tax Lien to request release of the statutory Maine estate tax lien under
36 M.R.S.
§4112 on Maine real property or tangible
personal property.
2.
Statement 700-SOV. Where an estate is not required to file a Maine
estate tax return, the personal representative may submit statement 700-SOV
after the date of death and request, along with a Certificate of Discharge of
Estate Tax Lien, the release of the statutory Maine estate tax lien under 36
M.R.S. § 4112 on real or tangible personal property for estates with no
tax liability. This statement does not constitute a return and no Maine estate
tax closing letter will be issued.
3.
Certificates of Discharge of Estate
Tax Lien. A personal representative must file a Certificate of Discharge
of Estate Tax Lien to request release of the statutory Maine estate tax lien on
Maine real property. A personal representative must file a Certificate of
Discharge of Estate Tax Lien on tangible personal property to request release
of the statutory Maine estate tax lien under
36 M.R.S.
§4112 on personal property sourced to
Maine.
B.
Attachments. A personal representative must file attachments
required by the State Tax Assessor ("Assessor"). Required attachments may
include, but are not limited to, appraisals, wills and trust documents, any
estate tax, gift tax, decedent's income tax or fiduciary income tax return
filed with the Internal Revenue Service ("IRS") or another state or
jurisdiction, proof of payment to the IRS or another state or jurisdiction, any
document stating a request for an extension of time to file or pay, any
applicable Life Insurance Statements (federal Form 712), financial statements,
pension or annuity plan documents or statements, bank and brokerage statements,
and a detailed list of miscellaneous property and documentation of its value.
Restricted Use Appraisals may not be relied on to establish value.
C.
Payment. Payment of any Maine
estate tax due must be paid within nine months of the decedent's date of death,
unless a request for an extension of time to pay has been granted by the
Assessor.
D.
Amended
returns. If the estate receives, or becomes entitled to, additional
property that was not shown on the Maine estate tax return, the personal
representative must file an amended Maine estate tax return within 180 days of
the receipt of such property, even if the additional property does not result
in an increase in the estate's liability shown on the return. If federal Form
706 has been audited by the IRS and the IRS changed any item resulting in an
increase in the estate's liability shown on the Maine estate tax return, the
personal representative must file an amended Maine estate tax return with a
copy of the federal statement of changes and federal audit packet within 180
days of the change. When the federal gross estate has been finally determined
by the IRS, a final determination of the Maine estate tax liability may be made
for Maine estate tax purposes, notwithstanding the statute of limitations, a
Maine estate tax closing letter, or any other determination by the
Assessor.
E.
Record
retention. A personal representative must, for Maine estate tax
purposes, retain complete records for the same period as required by the Code
and federal regulations for estates that incur a federal estate tax liability,
even if the estate has not incurred a federal estate tax liability.
F.
Extensions
1.
Extension of time to file.
The Assessor may allow a reasonable extension of time to file the Maine estate
tax return up to eight months from the original due date, as long as a payment
reasonably estimating the tax due has been submitted on or before the original
due date. A payment of at least 90% of the Maine estate tax due must be
submitted to avoid late payment penalties. If a federal extension to file has
been granted, a Maine extension to file is automatically granted equal to the
federal extension period. If the federal extension that was granted is less
than eight months, the Assessor may allow an extension up to a total of eight
months upon the written request of the personal representative stating the
reason for the extension request. If a federal estate tax return is not
required, the Assessor may allow a reasonable extension up to eight months from
the original due date without extension upon written request of the personal
representative. If the required Maine estate tax return is not filed by the
time the extension period expires, applicable penalties are calculated as if
the Maine estate tax return was due on the original due date without
extension.
2.
Extension of
time to pay. In order to receive an extension of time to pay the Maine
estate tax, the personal representative must request an extension in writing
and show that the estate has an inability to pay by the original due date. The
Assessor may mandate a bond or other security. An extension of time to pay may
be granted pursuant to
36 M.R.S.
§4108 for a reasonable period of time
not to exceed one year from the date fixed for payment. The Assessor may grant
successive extensions which in the aggregate may not exceed ten years unless a
deferred payment arrangement is made under
36 M.R.S.
§4109. Interest accrues on any amount of
tax not paid by the original due date.
G.
Escrow agreements. At the
request of the personal representative, the Assessor may allow, under terms the
Assessor may require, an estate to establish an escrow account in favor of
Maine Revenue Services in lieu of the tax bond typically required by the
probate court to secure the estimated Maine estate tax liability or in exchange
for the discharge of the Maine estate tax lien on estate property so that the
property may be sold to pay the Maine estate tax.
