Form 1120b-Me - Maine Franchise Tax Instructions

Form 1120b-Me - Maine Franchise Tax Instructions - 2002 Page 2

IMPORTANT CHANGES continued

TIMELY FILED RETURNS.

36 M.R.S.A. § 153. Currently, the US

INTEREST RATE.

36 M.R.S.A. § 186. Prior law tied the rate of

Postal Service postmark is used to determine whether a tax return or

interest applicable to tax overpayments or underpayments to the

payment is timely filed or paid. The law now extends the application

interest charged by Maine banks on commercial unsecured loans.

of the postmark date rule to other delivery service providers desig-

Starting in 2003, the rate of interest for any calendar year equals the

nated by the US Treasury Secretary in accordance with the Internal

highest prime rate as published in the Wall Street Journal on Sep-

Revenue Code. To-date, these include Airborne Express, DHL World-

tember 1 of the preceding calendar year, or if that day falls on a

wide Express, Federal Express, and United Parcel Service. Effective

holiday or weekend, the next succeeding business day, rounded up

April 1, 2002.

P.L. 2001, c.583, Sec. 2.

to the next whole percent plus 2 percentage points. Effective Janu-

ary 1, 2003.

P.L. 2001, c.583, Sections 9 and 24.

LIABILITY OF PURCHASER.

36 M.R.S.A. § 177(6). A person

who acquires a business, or the stock in trade of a business, is

required to withhold from the purchase price any unpaid Maine

“trust fund” taxes (sales tax, use tax, gasoline tax, special fuel tax,

recycling assistance fees and income tax withholding). The

purchaser’s liability, however, is limited to the amount of the pur-

chase price. The State Tax Assessor may issue an assessment

against the buyer for unpaid trust fund taxes within six years from

the date of the sale. Effective April 1, 2002.

P.L. 2001, c.583, Sec.

Form 1120b-Me - Maine Franchise Tax Instructions - 2002 Page 2