Form 706me - Worksheet For Determining Estate Filing Requirement For Deaths Occurring In 2006 Page 2

ADVERTISEMENT

exclusion amount, but in no event may the Maine QTIP deduction
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
exceed $1,000,000 for 2006. If the deduction on Line 4D is a
of $25 or 10% of the amount of tax due. If the return is fi led
portion of a trust included in the federal gross estate, the executor
more than 30 days after the receipt of a demand notice, the
or personal representative is considered to have made an election
failure-to-fi le penalty is 100% of the tax due. For failure to pay
only as to a fraction of the trust (or other property). The numerator
a tax liability, the penalty is 1% of the tax liability for each month
of this fraction is equal to the amount of the trust (or other property)
the payment is delinquent, up to a maximum of 25%.
deducted on Line 4D, and the denominator is equal to the total
b. Other penalties. The law also provides penalties for substantial
value of the trust (or other property) at the time of death of the
understatement of tax, negligence, fraud and for payment of tax
deducting decedent (fi rst to die). See
by check that is returned for insuffi cient funds.
incomeestate
for more information. Attach a description of the
Line 11
Enter the total due with this return. Make check payable to
QTIP property. QTIP property cannot consist of items that were
Treasurer, State of Maine and send to the address shown on
included as taxable gifts on the federal return.
page 2 of the form. Please write the decedent’s name and
Line 4E
If the surviving spouse of a decedent who previously claimed a
“Form 706ME” on the check to ensure proper credit.
Maine QTIP deduction dies in 2006, the surviving spouse’s estate
Line 12
Enter the total refund due with this return. Allow 4-6 weeks to
must include the current Maine QTIP property value (MAINE
process the refund.
ELECTIVE PROPERTY) on this line.
Step 5
Check the appropriate box. Even if you are not required to fi le
Line 5
To calculate the amount for this line, use the worksheet below.
a federal return, you may still owe Maine estate tax. You are
Line 6
Multiply Line 5 by the percentage on Line 3, and enter the result.
required to complete and attach a pro forma federal Form 706
to determine Maine tax liability.
Line 7a
Enter the total amount of Maine estimated / extension payments
made for this estate.
If the estate is subject to federal estate tax, you must include a completed
copy of federal Form 706, as fi led with the IRS, with this return.
Line 7b
Enter the amount of Maine estate tax paid with the original return. Fill
in this line only when fi ling an amended Maine estate tax return.
If the estate is not subject to federal estate tax, but is required to fi le for
Maine purposes, include a completed pro forma federal Form 706, including
Lines 8 - 10
Interest and penalties may apply if the return is fi led, or the tax
appropriate schedules, with the Maine Form 706ME.
is paid, after the due date. Contact the Income/Estate Tax Division,
Maine Revenue Services, for specifi c information necessary to
Provide documentation such as death certifi cate, trust documents and
complete these lines. Telephone 207-626-8480. The annual
appraisals to support the claims on the return. This will allow Maine Revenue
interest rate for 2006 is 10%, compounded monthly.
Services to process the return without having to contact the preparer for
additional information.
a. Late fi ling and late payment penalties. If a past due return
Extension:
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.
WORKSHEET FOR CALCULATING LINE 5
1) Enter amount from Form 706ME, Line 4F.
$
7) Line 5 minus Line 6 (if zero or less, enter
60,000
$
zero) ...........................................................
2) Less ............................................................
$
8) Maine Gross Estate Tax (Line 4 or Line 7,
3) Adjusted taxable estate (Line 1 minus Line
whichever is less). Also, enter on Maine
$
2). If zero or less, enter zero .....................
$
Form 706ME, Line 5. ..................................
4) Using amount on Line 3 and applying Table
$
A below, determine the amount to enter .....
* 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
5) Gross Federal Estate Tax* (federal Form 706,
estate (federal Form 706, Part 2, line 3a) by the amount of the Maine QTIP and
Part 2, Line 8 [calculated as if zero deduction
increasing the federal taxable estate by the amount of Maine elective property.
on Line 3b]) ................................................
$
See “Important Changes” on page 3 and instructions for Form 706ME, lines
345,800
4D and 4E for a more detailed description of Maine QTIP and Maine elective
6) Applicable Credit for 2006 ..........................
$
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
Rev. 08/06
2006 Form 706ME, Page 4

ADVERTISEMENT

00 votes

Related Articles

Related forms

Related Categories

Parent category: Financial
Go
Page of 3