Form 706me - Maine Estate Tax - 2011 Page 2
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1
2
3
4Line 20:Payments.
Enter the total amount of Maine estimated
Line 23: Refund due.
Enter the refund due. Allow 4-6 weeks to
process the refund. Mail return to Maine Revenue Services,
and extension payments made for this estate. If this is an
amended return, include on this line the amount of Maine
PO Box 1064, Augusta, Maine 04332-1064.
estate tax paid with the original return.
Line 21: Interest and penalties.
Interest and penalties may apply
Step 5. File the Maine estate tax return with supporting
if the return is fi led, or the tax is paid, after the due date.
documentation in the order listed.
Other supporting
Contact the Maine Revenue Services, Income/Estate Tax
documents include trust documents and appraisals to
Division at 207-626-8480 for specifi c information necessary
support the claims on the return. Proper documentation will
to complete this line. The annual interest rate for 2011 is
allow Maine Revenue Services to process the return without
7%, compounded monthly.
having to contact the preparer for additional information.
Late fi ling and late payment penalties. If a past due
Extension. Maine allows an automatic extension to fi le equal to any
return is fi led before the receipt, or within 60 days of the
federal extension or 6 months, whichever is the longer period of time. An
receipt, of a demand notice, the penalty for failure to fi le
extension to fi le is not an extension to pay the tax. An extension to pay
is the greater of $25 or 10% of the amount of tax due. If
the tax must be requested in writing.
the return is fi led more than 60 days after the receipt of a
demand notice, the failure-to-fi le penalty is the greater of
Amended returns. If an orginal return has already been fi led, an
$25 or 25% of the amount of tax due. For failure to pay
amended Maine estate tax return must be fi led within 180 days of receipt
a tax liability, the penalty is 1% of the tax liability for each
of property or entitlement to property, or a change by the Internal Revenue
month the payment is delinquent, up to a maximum of
Service that increases the Maine estate tax liability.
25%.
Final federal determination. If a fi nal federal determination has
Other penalties. The law also provides penalties for
been made, the assessor can make a separate determination regarding an
substantial understatement of tax, negligence, fraud, willful
estate tax issue. For estates of deaths occurring on or after July 1, 2009,
understatement of liability by a preparer and for payment
but before July 1, 2010, the assessor’s determination must be made within
of tax by check that is returned for insuffi cient funds.
the later of two years from the due date, or two years from the fi ling date,
of the return. For estates of deaths occurring on or after July 1, 2010, the
Line 22: Amount due.
Enter the total amount due with this return.
assessor’s determination must be made within one year from the fi ling date
Make check payable to Treasurer, State of Maine and send
of the return.
to Maine Revenue Services, PO Box 1065, Augusta, Maine
04332-1065. Please write the decedent’s name/social
Audit adjustments. MRS is required to notify the IRS of any audit
security number and “Form 706ME” on the check to ensure
adjustments that affect the federal liability of the estate.
proper credit.
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 2011 .....................................
$
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 pro forma 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 2009 pro forma 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
Page 4
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