Form 1120b-Me - Maine Franchise Tax Return For Financial Institutions

GENERAL INSTRUCTIONS (continued)

or correction. Attach a copy of the Internal Revenue

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

Agent’s report and closing letter with all supporting

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

schedules to the Maine amended return.

the receipt, of a demand notice, the penalty for failure

to ﬁ le is the greater of $25 or 10% of the amount of tax

Taxpayers ﬁ ling amended federal returns must, within

due. If the return is ﬁ led more than 60 days after the

180 days, ﬁ le amended Maine returns with copies of the

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

federal amended return. When ﬁ ling returns that reﬂ ect

increases to the greater of $25 or 25% of the tax due.

federal net operating losses, a copy of federal Form

1139 must be attached.

For failure to pay a tax liability, the penalty is 1% of the

tax liability for each month the payment is delinquent,

In addition, an amended Maine franchise tax return is

up to 25%.

required to correct errors on a previously ﬁ led return.

The amended return must be ﬁ led within 180 days after

Other penalties. The law also provides for penalties

discovering the error. Use Form 1120B-ME for the year

for substantial understatement of tax, negligence,

you are amending and check the box marked “Check

fraud and for payment of tax by check that is returned

here if an amended return” in the upper right corner of

for insufﬁ cient funds. See M.R.S.A. 36 § 187-B.

the form.

ACCOUNTING PERIOD COVERED:

Form 1120B-ME

11.

COMBINED REPORT FOR UNITARY MEMBERS:

will cover the same period as the equivalent federal

A ﬁ nancial institution that is a member of an afﬁ liated

return.

group and operates in a unitary fashion must ﬁ le a Maine

Franchise Tax Combined Report For Unitary Members

ACCOUNTING METHODS:

A taxpayer’s method of

(Form CRB). Maine law deﬁ nes afﬁ liated group to mean

accounting for Maine franchise tax purposes must be

a group of two or more ﬁ nancial institutions in which more

the same as that used for federal income tax purposes.

than 50% of the voting interest of each member ﬁ nancial

institution is directly or indirectly owned by a common

FEDERAL RETURN MUST ACCOMPANY STATE

owner or owners, either corporate or noncorporate, or by

RETURN:

A Maine franchise tax return, Form 1120B-

one or more of the member ﬁ nancial institutions. Unitary

ME, must be accompanied by a legible copy of pages 1

is deﬁ ned as a business activity that is characterized by

through 5 of the ﬁ nancial institution’s federal return for

unity of ownership, functional integration, centralization

the same taxable period. You are not required to provide

of management and economies of scale.

Maine with copies of supporting schedules attached to

the federal form ﬁ led with the Internal Revenue Service

The State of Maine three factor apportionment formula

unless speciﬁ cally requested.

is used to apportion net income of multi-state ﬁ nancial

institutions. The law provides that the apportionment

10.

FEDERAL

AUDIT

CHANGES

AND

AMENDED

formula is also used to compute Maine assets from the

RETURNS:

Taxpayers must ﬁ le Maine amended returns

total end-of-year assets of the ﬁ nancial institution.

for any change or correction by the Internal Revenue

Service in federal net income per books or total end-of-

year assets. The amended return must be ﬁ led within

180 days after ﬁ nal determination of the federal change

SPECIFIC INSTRUCTIONS

Line 1b. Maine Net Income:

Financial institutions that are not

Line 2b. Maine Assets:

Financial institutions that are not

part of an afﬁ liated-unitary group and have income solely from

activity within Maine must enter here the same amount as on

line 1a. Financial institutions that are members of an afﬁ liated-

line 2a. Financial institutions that are members of an afﬁ liated-

unitary group must ﬁ le a combined report (Form CRB). A

ﬁ nancial institution that is taxable both in and outside Maine

must apportion its net income by completing Schedule A on

must apportion its assets by completing Schedule A on page 2.

page 2. The instructions for Schedule A are on page 4. For

The instructions for Schedule A are on page 4. For information

information on how to ﬁ le Form CRB, see the instructions for

on how to ﬁ le Form CRB, see the instructions for Form CRB on

Form CRB on page 5.

page 5.

Form 1120b-Me - Maine Franchise Tax Return For Financial Institutions - 2012 Page 2

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