Form 1120b-Me - Maine Franchise Tax Instructions - 1999

MAINE

1999

FRANCHISE

TAX

Instructions

All financial institutions with Maine net income or Maine assets are subject to Maine’ s franchise

tax, even if the institution is established as a partnership, S corporation or entity disregarded as

separate from its owner. Owners of financial institutions subject to franchise tax requirements will

not also be taxed on that income for individual or corporate purposes.

QUALIFIED SUBCHAP-

TER S CORPORATION SUBSIDIARIES (QSSS).

A law change was made which clarifies that a

financial institution that is a QSSS must determine its Maine assets and Maine net income as if the

financial institution were required to file federal Form 1120S and apportion income to Maine in

accordance with 36 MRSA, §5206-E. This change applies retroactively to tax years beginning on

or after January 1, 1997 (36 MRSA, §5206-D, sub-§§12 and 13).

FORM 1120B-ME

Printed under Appropriation 010.18F.0002.07

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Parent category: Financial