Fillable Form 706me - Maine Estate Tax Return

Maine QTIP election for eligible property. The maximum

is the greater of $25 or 10% of the amount of tax due. If

allowable Maine QTIP election is the difference between the

the return is ﬁ led more than 60 days after the receipt of a

decedent’s federal exclusion amount, net of any deceased

demand notice, the failure-to-ﬁ le penalty is the greater of

spousal unused exclusion from a predeceased spouse,

$25 or 25% of the amount of tax due. For failure to pay

and the Maine exclusion amount. For 2013 decedents,

a tax liability, the penalty is 1% of the tax liability for each

this maximum election is $3,250,000 ($5,250,000 -

month the payment is delinquent, up to a maximum of 25%.

$2,000,000). If the Maine QTIP is a portion of a trust or

Other penalties. The law also provides penalties for

other property included in the federal taxable estate, the

substantial understatement of tax, negligence, fraud, willful

personal representative is considered to have made an

understatement of liability by a preparer and for payment

election equal to a fraction of that trust or property. The

of tax by check that is returned for insufﬁ cient funds.

numerator of the fraction is the amount of the Maine QTIP

Line 22: Amount due.

Enter the total amount due with this return.

entered on this line and the denominator is the total value

Make check payable to Treasurer, State of Maine, and

of the trust or other property. Attach a description of the

send to Maine Revenue Services, PO Box 1065, Augusta,

assets in the Maine QTIP. A Maine QTIP cannot contain

Maine 04332-1065. Please write the decedent’s name/

items that are includible as taxable gifts on the federal

social security number and “Form 706ME” on the check to

return. The Maine QTIP election defers taxation of the

ensure proper credit.

transfer of that property to the death of the decedent’s

spouse (subsequent decedent spouse). The Maine estate

Line 23: Refund due.

Enter the refund due. Allow 4-6 weeks to

tax return for the subsequent decedent spouse must include

process the refund. Mail return to Maine Revenue Services,

the remaining value of the Maine QTIP, which is referred to

PO Box 1064, Augusta, Maine 04332-1064.

as Maine elective property. See MRS Rule 603.

Step 5. File the Maine estate tax return with supporting

Line17: Maine estate tax.

Multiply line 15 by line 16. This amount

documentation in the order listed. Other supporting

may be reduced by the credit for tax paid to another

documents include trust documents and appraisals to

jurisdiction. If the estate of a resident decedent pays estate

support the claims on the return. Proper documentation will

tax to another jurisdiction on real or tangible personal

allow Maine Revenue Services to process the return without

property included in a trust, LLC or other pass-through

having to contact the preparer for additional information.

entity, Maine will allow a credit for that tax paid. The other

Extension. An extension to pay the tax must be requested in

jurisdiction must look through the entity to the underlying

writing. Maine, however, allows an automatic extension to ﬁ le equal to

assets and tax any real or tangible personal property

any federal extension or 6 months, whichever is longer. An extension

located in that state as if directly owned by the decedent.

to ﬁ le is not an extension to pay the tax.

See Worksheet D -- Credit for Estate Tax paid to Other

Amended returns. If an orginal return has already been ﬁ led,

Jurisdictions By Resident Estates.

an amended Maine estate tax return must be ﬁ led within 180 days of

Line20: Payments.

Enter the total amount of Maine estimated

receipt of property or entitlement to property, or a change by the Internal

and extension payments made for this estate. If this is an

Revenue Service that increases the Maine estate tax liability.

amended return, include on this line the amount of Maine

Final federal determination. If a ﬁ nal federal determination has

estate tax paid with the original return.

been made, the assessor can make a separate determination regarding

Line21: Interest and penalty amounts.

Interest and penalties may

an estate tax issue. For estates of deaths occurring on or after July 1,

apply if the return is ﬁ led, or the tax is paid, after the due

2010, but before July 1, 2011, the assessor’s determination must be

date. Contact Maine Revenue Services, Income/Estate Tax

made within the later of two years from the due date, or two years from

Division at 207-626-8480 for speciﬁ c information necessary

the ﬁ ling date, of the return. For estates of decedents dying on or after

to complete this line. The annual interest rate for 2013 is

July 1, 2011, the assessor’s determination must be made within one

7%, compounded monthly.

year from the ﬁ ling date of the return.

Late ﬁ ling and late payment penalties. If a past due

Audit adjustments. MRS is required to notify the IRS of any audit

return is ﬁ led before the receipt, or within 60 days of the

adjustments that affect the federal liability of the estate.

receipt, of a demand notice, the penalty for failure to ﬁ le

Table A

If Form 706ME, line 14 is:

The tax for line 15 is:

$2,000,000 or less

more than $2,000,000 but not more than $5,000,000

8% of the excess over $2,000,000

more than $5,000,000 but not more than $8,000,000

$240,000 plus 10% of the excess over $5,000,000

more than $8,000,000

$540,000 plus 12% of the excess over $8,000,000

Form 706me - Maine Estate Tax Return - 2013 Page 5

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