18-125-603 Me. Code R. § .03

Current through 2024-51, December 18, 2024

Section 125-603-.03 - FILING REQUIREMENTS

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.

18-125 C.M.R. ch. 603, § .03