Form 706me - Maine Estate Tax Worksheets - 2010 Page 2
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4Line 21: Interest and penalties.
Interest and penalties may apply if the
Extension. If the estate is unable to fi le the return by the original due date,
return is fi led, or the tax is paid, after the due date. Contact the
Maine allows an automatic extension equal to any federal extension or 6 months,
Income/Estate Tax Division, Maine Revenue Services, at 207-
whichever is the longer period of time. An extension to fi le is not an extension to
626-8480 for specifi c information necessary to complete this line.
pay the tax. An extension to pay the tax must be requested in writing.
The annual interest rate for 2010 is 7%, compounded monthly.
Amended returns. Amended Maine estate tax returns must be fi led within
Late fi ling and late payment penalties. If a past due return
90 days of receipt of property or entitlement to property, or a change by the Internal
is fi led before the receipt, or within 30 days of the receipt, of a
Revenue Service that increases the Maine estate tax liability. The requirement applies
demand notice, the penalty for failure to fi le is the greater of $25
to receipts, entitlements and changes occurring after the assessor’s determination
or 10% of the amount of tax due. If the return is fi led more than
of the estate tax due with respect to the original Maine estate tax return.
30 days after the receipt of a demand notice, the failure-to-fi le
Final federal determination. If a fi nal federal determination has been made,
penalty is 100% of the tax due. For failure to pay a tax liability,
the assessor can make a separate determination regarding an estate tax issue. For
the penalty is 1% of the tax liability for each month the payment
estates of deaths occurring on or after July 1, 2009, but before July 1, 2010, the
is delinquent, up to a maximum of 25%.
assessor’s determination must be made within the later of two years from the due
Other penalties. The law also provides penalties for substantial
date, or two years from the fi ling date, of the return. For estates of deaths occurring
understatement of tax, negligence, fraud, willful understatement
on or after July 1, 2010, the assessor’s determination must be made within one year
of liability by a preparer and for payment of tax by check that is
from the fi ling date of the return.
returned for insuffi cient funds.
Audit adjustments. MRS is required to notify the IRS of any audit adjustments
that affect the federal liability of the estate.
Line 22: Amount due.
Enter the total amount due with this return. Make
check payable to Treasurer, State of Maine and send to Maine
Revenue Services, P.O. Box 1065, Augusta, Maine 04332-1065.
Please write the decedent’s name/social security number and
“Form 706ME” on the check to ensure proper credit.
Line 23: Refund due.
Enter the total refund due. Allow 4-6 weeks to
process the refund. Mail return to Maine Revenue Services, PO
Box 1064, Augusta, Maine 04332-1064.
Step 5 File the Maine estate tax return with supporting documentation
in the order listed. Other supporting documents include death
certifi cate, trust documents and appraisals to support the claims
on the return. Proper documentation will allow Maine Revenue
Services to process the return without having to contact the
preparer for additional information.
WORKSHEET A FOR CALCULATING LINE 15
5) Gross Federal Estate Tax* (2009 federal pro forma
1)
Maine taxable estate (page 2, line 14)..................
$
form 706, Part 2, line 8 [calculated as if zero
$
60,000
2) Less ......................................................................
$
deduction on line 3b]) .................... ......................
3) Adjusted Maine taxable estate (line 1 minus line 2). If
345,800
$
6) Applicable Credit for 2010 .....................................
$
zero or less, enter zero .........................................
7) Line 5 minus line 6 (if zero or less, enter
4) Determine the amount to enter by using amount on
$
zero........................................................................
line 3 and applying Table A below ........................
$
8) Gross Tax (line 4 or line 7,
$
.
whichever is less). Also, enter on page 2, line 15
* 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 (2009 federal pro forma 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 2009 federal pro forma 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
0
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
2010 Form 706ME, Page 4
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