Maine Sales Tax Guide
Chapter 7: How to manage late Maine sales tax return filing
Hopefully you don't need to worry about this chapter because you're getting your Maine sales tax filing and remittance done on time and submitted without incident. However, in the real world, mistakes happen. In this chapter, we'll talk about how to avoid costly penalties and fines if you've missed your assigned filing deadline.What do I do if I missed my Maine sales tax filing deadline?
The first thing to do is get your return filed. This is definitely one of those situations where things are "better late than never." As long as you don't submit your tax filing paperwork, or hold on to the tax dollars you've collected, you may be accruing fines and interest. It's always best to get your filing done and deal with any penalties and interest payments later.What penalties and interest payments are imposed by the Maine Revenue Services?
Failure to File Return: Failure to file a return on or before the due date may result in a penalty of $25.00 or 10% of the tax due, whichever is greater. Failing to file within 60 days after receiving a formal demand for the return to be filed may result in a penalty of $25.00 or 25% of the tax due, whichever is greater.
Failure to pay any tax on any return on or before the due date may result in a penalty of 1% of the unpaid tax for each month or fraction thereof the debt remains outstanding, up to a limit of 25% of the unpaid tax. Failure to pay a tax assessment for which no further administrative or judicial review is available may be charged an additional penalty of 25% of the tax due if payment of the tax due is not made within 10 days after the person receives a demand for payment.
Filing a return that results in an underpayment of tax due to taxpayer negligence or intentional disregard of the law or of any ruling or rule of the Assessor (but without intent to defraud) may result in a penalty of $25.00 or 25% of the deficiency, whichever is greater. Filing a return resulting in an underpayment of tax because of fraud with intent to evade remittance of collected tax may be charged a penalty of $75.00 or 75% of the deficiency, whichever is greater.If I acquire a business, am I responsible for any outstanding sales tax debts, penalties, and interest?
Yes! If you are acquiring a business, it is strongly recommended that you contact the Maine Revenue Services and inquire about the current state of the potential acquisition. Once you've purchased the business, you will be held responsible for any and all outstanding Maine sales and use tax liability.