Fillable Form 706me - Maine Estate Tax Return

gain. See 36 M.R.S. § 4104 and MRS Rule 603.

Other penalties. The law also provides penalties for

substantial understatement of tax, negligence, fraud, willful

Line 6b. Intangible personal property.

This line must be

understatement of liability by a preparer and for payment

completed for the estate of a Maine resident decedent.

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

The estate of a nonresident decedent should leave this line

blank. For the estate of a Maine resident decedent, enter

Line 13: Amount due.

Enter the total amount due with this return.

the value of all intangible personal property included in line

Make check payable to Treasurer, State of Maine, and

6. Examples of intangible personal property include, but are

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

not limited to, cash, brokerage account balances, interest

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

and dividends, life insurance proceeds, and annuities.

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

ensure proper credit.

Line 10: Net Maine estate tax.

Residents: multiply line 9 by line

7. Nonresidents: multiply line 9 by line 8. If the estate of a

Line 14: Refund due.

Enter the refund due. Allow 4-6 weeks

resident decedent pays estate tax to another jurisdiction on

to process the refund. Mail return to:

real or tangible personal property included in a trust, LLC

Maine Revenue Services

or other pass-through entity, Maine will allow a credit for

PO Box 1064

that tax paid. The other jurisdiction must look through the

Augusta, Maine 04332-1064

entity to the underlying assets and tax any real or tangible

Step 5. File the Maine estate tax return with supporting

personal property located in that state as if directly owned

documentation in the order listed. Other supporting

by the decedent. See Worksheet D -- Credit for Estate Tax

documents include trust documents and appraisals to

paid to Other Jurisdictions By Resident Estates, available

support the claims on the return. Proper documentation will

online at , or by calling the

allow Maine Revenue Services to process the return without

Estate Tax Hotline at (207) 626-8480.

having to contact the preparer for additional information.

Line 11: Payments.

Enter the total amount of Maine estimated

Extension. An extension to pay the tax must be requested

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

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

amended return, include on this line the amount of Maine

equal to any federal extension or six months, whichever is longer.

estate tax paid with the original return.

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

Line 12: Interest and penalty amounts.

Interest and penalties

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

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

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

the due date. The annual interest rate for 2014 is 7%,

receipt of property or entitlement to property, or within 180 days of

compounded monthly.

a change by the Internal Revenue Service that increases the Maine

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

estate tax liability.

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

Final federal determination. If a ﬁ nal federal determination has

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

been made, the assessor may make a separate determination

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

regarding an estate tax issue within one year from the ﬁ ling date

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

of the return.

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

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

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

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

adjustments that affect the federal liability of the estate.

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

Table A

If Form 706ME, line 5 is:

The tax for line 9 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 - 2014 Page 5

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