Instructions And Worksheet For 2008 Maine Estate Tax Return Page 2
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5Extension: If the estate is unable to file 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 file is not an extension to pay the tax. An
extension to pay the tax must be requested in writing.
the tax is paid, after the due date. Contact the Income/Estate
If the estate is not subject to federal estate tax, but is required to
Tax Division, Maine Revenue Services, for specific information
file for Maine purposes, include a completed pro forma federal Form 706,
necessary to complete these lines. Telephone 207-626-8480. The
including appropriate schedules, with the Maine Form 706ME.
annual interest rate for 2008 is 12%, compounded monthly.
Provide documentation such as death certificate, trust documents
a. Late filing and late payment penalties. If a past due return
and appraisals to support the claims on the return. This will allow Maine
is filed before the receipt, or within 30 days of the receipt, of
Revenue Services to process the return without having to contact the
a demand notice, the penalty for failure to file is the greater
preparer for additional information.
of $25 or 10% of the amount of tax due. If the return is filed
more than 30 days after the receipt of a demand notice, the
failure-to-file penalty is 100% of the tax due. For failure to pay a
Amended returns. Amended Maine estate tax returns must be filed
tax liability, the penalty is 1% of the tax liability for each month
within 90 days of receipt of property, entitlement to property, or change by
the payment is delinquent, up to a maximum of 25%.
the Internal Revenue Service that increases the Maine estate tax liability.
b. Other penalties. The law also provides penalties for substantial
The requirement applies to receipts, entitlements and changes occurring
understatement of tax, negligence, fraud, willful understatement
after the assessor’s determination of the estate tax due with respect to the
of liability by a preparer and for payment of tax by check that is
original Maine estate tax return.
returned for insufficient funds.
Final federal determination. If a final federal determination has
Line 11 Enter the total due with this return. Make check payable to
occurred, the assessor can make a separate determination regarding an
Treasurer, State of Maine and send to the address shown on page 2
estate tax issue. The assessor’s determination must be made within the
of the form. Please write the decedent’s name and “Form 706ME”
later of two years from the due date, or two years from the filing date, of
on the check to ensure proper credit.
a return. Applies to estates of deaths occurring on or after July 1, 2008,
but before January 1, 2010.
Line 12 Enter the total refund due with this return. Allow 4-6 weeks to
process the refund.
Audit adjustments. MRS is required to notify the IRS of any audit
adjustments that affect the federal liability of the estate.
Step 5
Check the appropriate box.
If the estate is subject to federal estate tax, you must include
with this return a completed copy of federal Form 706 as filed
with the IRS.
WORkShEET FOR CALCULATING LINE 5
1) Maine taxable estate (page 1, line 4F).
$
5) Gross Federal Estate Tax* (federal Form 706,
60,000
Part 2, line 8, actual or pro forma, [calculated
$
2) Less. . ...........................................................
$
as if zero deduction on line 3b])..................
3) Adjusted taxable estate (line 1 minus line 2). If
345,800
$
6) Applicable Credit for 2008.......................... .
$
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 page 1,
$
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
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
2008 Form 706ME, Page 4
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