18-125-104 Me. Code R. § .03

Current through 2025-03, January 15, 2025

Section 125-104-.03 - MANDATORY PARTICIPATION

A.Individual income tax returns. A tax return preparer must file by electronic data submission all Maine tax returns for individual income tax, unless:

1. During the previous calendar year, the tax return preparer prepared 10 or fewer Maine tax returns for individual income tax; or

2. The taxpayer refuses to allow the return to be filed by electronic data submission and the tax return preparer notes the refusal in the taxpayer's records.

B.Sales, use, and service provider tax returns. A tax return preparer must file all Maine tax returns for sales, use, or service provider tax by electronic data submission.

C.Income tax withholding, real estate withholding, and pass-through entity withholding returns.

1. Employers that are registered for Maine income tax withholding, third-party filers or payroll processors as defined in 10 M.R.S., Chapter 222, fiscal agents designated in accordance with 36 M.R.S. §5250(5), and non-wage payers that are subject to Maine income tax withholding under 36 M.R.S. §§5255-B and 5255-C must file electronically all Maine quarterly returns with respect to Maine income tax withholding.

2. Pass-through entities with any nonresident members that are subject to pass-through withholding on Maine-source income must electronically file Form 941P-ME.

3. A buyer of real property located in Maine who is required to withhold Maine income tax under 36 M.R.S. §5250-A(2), or the REW filer for such buyer, must, for returns due on or after January 1, 2025, electronically file Forms REW-1-1040, REW-1- 1041, and REW-1-1120.

D.Corporate income tax returns. Corporations, including tax-exempt entities, required to file Form 1120ME with total assets of $5 million or more as of the last day of the tax year must file returns by electronic data submission unless the taxpayer has been granted a waiver from mandatory participation under section .04 below. For returns filed in calendar year 2025 or any subsequent calendar year, corporations, including tax-exempt entities, subject to the tax imposed by 36 M.R.S., Chapter 817 and a tax return preparer for such corporation that is required to file the federal corporate return electronically for the taxable year must file Maine Form 1120ME by electronic data submission unless the taxpayer has been granted a waiver from mandatory participation under section .04 below.

E.Real estate transfer tax returns. Starting with returns filed in calendar year 2021, a tax return preparer must file by electronic data submission all Maine tax returns for real estate transfer tax, except:

1. Where the tax return preparer prepared fewer than 10 Maine tax returns for real estate transfer tax in the previous calendar year; or

2. Where the tax return preparer has been granted a waiver from mandatory participation under section .04.

F.Franchise tax returns. Starting with returns filed in calendar year 2025, a financial institution subject to the tax imposed by 36 M.R.S., Chapter 819 and a tax return preparer for such financial institution must file by electronic data submission all Maine tax returns for franchise tax unless the taxpayer has been granted a waiver from mandatory participation under section .04, below.

G.Insurance premiums tax returns. Starting with returns filed in calendar year 2025, a person subject to the taxes imposed by 36 M.R.S., Chapter 357 or 25 M.R.S. § 2399, and a tax return preparer for such person, must file by electronic data submission all Maine tax returns required by 36 M.R.S. §§2521-A and 2531(3) unless the taxpayer has been granted a waiver from mandatory participation under section .04 below.

H.Fuel tax returns. Starting with returns filed in calendar year 2025, a tax return preparer must file by electronic data submission all Maine gasoline distributor and/or special fuel supplier tax returns, including the annual shrinkage returns and schedules, except where the tax return preparer has been granted a waiver from mandatory participation under section .04 below.

I.Special tax returns. Starting with returns filed in calendar year 2025, a tax return preparer must file by electronic data submission all Maine special tax returns, except where the tax return preparer has been granted a waiver from mandatory participation under section .04 below.

J.Applications for the refundable seed capital investment tax credit by private venture capital funds under 36 M.R.S. §5216-B(2). Starting with applications filed in calendar year 2025 for investments made in calendar year 2024 or later, a private venture capital fund and a tax return preparer for such fund must file by electronic data submission all applications for the refundable seed capital investment tax credit under 36 M.R.S. §5216-B(2) unless the fund has been granted a waiver from mandatory participation under section .04 below.

K.Applications for the certified visual media production wage reimbursement under 36 M.R.S., Chapter 919-A. Starting with applications filed in calendar year 2025, a visual media production company and a tax return preparer for such company must file by electronic data submission all applications for the certified visual media production wage reimbursement under 36 M.R.S., Chapter 919-A unless the company has been granted a waiver from mandatory participation under section .04 below.

18-125 C.M.R. ch. 104, § .03