Form 706me - Worksheet For Determining Estate Filing Requirement For Deaths Occurring In 2007 Page 2
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4Extension: If the estate is unable to fi le the return by the original due date, Maine allows an automatic extension equal to any federal
extension or 6 months, whichever is the longer period of time. An extension to fi le is not an extension to pay the tax. An
extension to pay the tax must be requested in writing.
Line 7b Enter the amount of Maine estate tax paid with the original return.
Line 11 Enter the total due with this return. Make check payable to
Treasurer, State of Maine and send to the address shown on
Fill in this line only when fi ling an amended Maine estate tax
page 2 of the form. Please write the decedent’s name and “Form
return.
706ME” on the check to ensure proper credit.
Lines 8 - 10
Interest and penalties may apply if the return is fi led, or
Line 12 Enter the total refund due with this return. Allow 4-6 weeks to
the tax is paid, after the due date. Contact the Income/Estate
process the refund.
Tax Division, Maine Revenue Services, for specifi c information
necessary to complete these lines. Telephone 207-626-8480. The
Step 5
Check the appropriate box. Even if you are not required to fi le
annual interest rate for 2007 is 12%, compounded monthly.
a federal return, you may still owe Maine estate tax. You are
required to complete and attach a pro forma federal Form 706
a. Late fi ling and late payment penalties. If a past due return
to determine Maine tax liability.
is fi led before the receipt or within 30 days of the receipt of
a demand notice, the penalty for failure to fi le is the greater
of $25 or 10% of the amount of tax due. If the return is fi led
If the estate is subject to federal estate tax, you must include a
more than 30 days after the receipt of a demand notice, the
completed copy of federal Form 706, as fi led with the IRS, with this
failure-to-fi le penalty is 100% of the tax due. For failure to pay a
return.
tax liability, the penalty is 1% of the tax liability for each month
If the estate is not subject to federal estate tax, but is required to
the payment is delinquent, up to a maximum of 25%.
fi le for Maine purposes, include a completed pro forma federal Form 706,
b. Other penalties. The law also provides penalties for substantial
including appropriate schedules, with the Maine Form 706ME.
understatement of tax, negligence, fraud, willful understatement
Provide documentation such as death certifi cate, trust documents
of liability by a preparer and for payment of tax by check that is
and appraisals to support the claims on the return. This will allow Maine
returned for insuffi cient funds.
Revenue Services to process the return without having to contact the
preparer for additional information.
WORKSHEET FOR CALCULATING LINE 5
1) Enter amount from Form 706ME, Line 4F.
5) Gross Federal Estate Tax* (federal Form 706,
$
Part 2, Line 8, actual or pro forma, [calculated
60,000
2) Less ............................................................
$
$
as if zero deduction on Line 3b]) ................
3) Adjusted taxable estate (Line 1 minus Line 2).
345,800
$
6) Applicable Credit for 2007 ..........................
$
If zero or less, enter zero ............................
7) Line 5 minus Line 6 (if zero or less, enter
4) Using amount on Line 3 and applying Table A
$
zero) ..........................................................
below, determine the amount to enter ........
$
8) Maine Gross Estate Tax (Line 4 or Line 7,
whichever is less). Also, enter on Maine
$
Form 706ME, Line 5. .................................
* NOTE: If the estate contains Maine QTIP or Maine elective property, calculate the amount for line 5 of the worksheet above by reducing the federal taxable estate plus
prior taxable gifts (federal Form 706, Part 2, line 5) by the amount of the Maine QTIP and increasing the federal taxable estate by the amount of Maine elective property.
This tax amount is then reduced by gift tax paid/payable on federal Form 706, line 7.
Table A
(1)
(2)
(3)
(4)
Subtract the
Add
If worksheet, Line 3 is
following amount from
Multiply
and enter result
at least:
BUT
less than:
worksheet, Line 3:
Result by:
on worksheet, Line 4:
0
$40,000
0
None
0
$40,000
90,000
$40,000
0.8%
0
90,000
140,000
90,000
1.6%
$400
140,000
240,000
140,000
2.4%
1,200
240,000
440,000
240,000
3.2%
3,600
440,000
640,000
440,000
4.0%
10,000
640,000
840,000
640,000
4.8%
18,000
840,000
1,040,000
840,000
5.6%
27,600
1,040,000
1,540,000
1,040,000
6.4%
38,800
1,540,000
2,040,000
1,540,000
7.2%
70,800
2,040,000
2,540,000
2,040,000
8.0%
106,800
2,540,000
3,040,000
2,540,000
8.8%
146,800
3,040,000
3,540,000
3,040,000
9.6%
190,800
3,540,000
4,040,000
3,540,000
10.4%
238,800
4,040,000
5,040,000
4,040,000
11.2%
290,800
5,040,000
6,040,000
5,040,000
12.0%
402,800
6,040,000
7,040,000
6,040,000
12.8%
522,800
7,040,000
8,040,000
7,040,000
13.6%
650,800
8,040,000
9,040,000
8,040,000
14.4%
786,800
9,040,000
10,040,000
9,040,000
15.2%
930,800
10,040,000
---------------
10,040,000
16.0%
1,082,800
2007 Form 706ME, Page 4
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