2005 Maine Code - §5228 — Estimated tax

      1. Definitions. As used in this section, unless the context otherwise indicates, the following terms have the following meanings.
   
A. "Allowable credits" means the total amount of any payments with regard to a taxpayer which have been or will be paid to the Bureau of Revenue Services prior to the date the payment against which they are to be used as a credit is due and which are available to offset any estimated tax liability. [1985, c. 691, §§35, 48 (new); 1997, c. 526, §14 (amd).]    
B. "Estimated tax" means the amount which a person estimates as the total amount of income tax which will be due under this Part exclusive of a withholder's liability for taxes withheld for a taxable year less any allowable credits for that taxable year. [1985, c. 691, §§35, 48 (new).]    
C. "Period of underpayment" is the period of time from the date the installment is due until the underpayment is satisfied or until the tax return to which the estimate installment applies is due, whichever is less. [1985, c. 691, §§35, 48 (new).] [1985, c. 691, §§35, 48 (rpr); 1997, c. 526, §14 (amd).]
      2. Requirement to pay estimated tax. Every person subject to taxation under this Part shall make payment of estimated tax as required by this Part in such form as the State Tax Assessor may require. If the person's income tax liability pursuant to this Part exclusive of a withholder's liability for taxes withheld reduced by allowable credits for the taxable year is less than $1,000 for the taxable year or, if the person had less than $1,000 tax liability for the prior tax year, the requirement to make the payments is waived.
   
A. [1985, c. 691, §§35, 48 (rp).]    
B. [1985, c. 691, §§35, 48 (rp).] [1997, c. 668, §35 (amd); §43 (aff).]
      3. Amount of estimated tax to be paid. Every person required to make payment of estimated tax is liable for an estimated tax that is no less than the smaller of the following; large corporations as defined in the Code, Section 6655(g), are subject only to paragraph B, except as provided in subsection 5, paragraph C:
   
A. An amount equal to the preceding year's state income tax liability, if that preceding year was a taxable year of 12 months; or [1985, c. 691, §§35, 48 (new).]    
B. An amount equal to 90% of the income tax liability for the current year determined without taking into account the current year's investment tax credit set forth in section 5219-E, except that for farmers and persons who fish commercially, this amount is 66 2/3% of the tax liability for the current year. [1991, c. 528, Pt. DDD, §1 (amd); §2 (aff); Pt. RRR (aff); c. 591, Pt. DDD, §1 (amd); §2 (aff).] [1999, c. 414, §50 (amd).]
      4. Due dates for estimated tax installments. For individuals, trusts and estates, an installment payment is due the 15th day of the 4th, 6th, 9th and 13th month following the beginning of their fiscal year, except that in the case of farmers and fishermen, a single installment payment is due on January 15th of the following taxable year. For corporations and financial institutions, an installment payment is due on the 15th day of the 4th, 6th, 9th and 12th month following the beginning of their fiscal year.[2001, c. 583, §18 (amd).]
      5. Amount of installment. The amount of estimated tax to be paid in a taxable year by a taxpayer is to be paid in installments by the dates established in this Part. The amount of the estimated tax is to be paid in 4 equal installments unless:
   
A. The taxpayer establishes by adequate record the actual distribution of tax liability and allowable credits, or both. In this case, the amount of the installment payments should be adjusted accordingly and be determined in accordance with the portion of the taxpayer's estimated tax liability applicable to that portion of the taxpayer's taxable year completed by the close of the month preceding the installment's due date less estimated tax payments already made for the taxable year; [1991, c. 9, Pt. DD, §2 (amd); §4 (aff).]    
B. The taxpayer is a farmer or fisherman in which case a single installment is required; or [1991, c. 9, Pt. DD, §2 (amd); §4 (aff).]    
C. If the taxpayer is a large corporation as defined in the Code, Section 6655(g), then the corporation may elect to determine its first required installment for any taxable year pursuant to subsection 3, paragraph A. If the corporation so elects, its 2nd required installment for the taxable year must equal the total amount of estimated tax for the first 2 installments for the taxable year pursuant to subsection 3, paragraph B, less the amount of the first installment for the taxable year allowed pursuant to subsection 3, paragraph A. [1999, c. 414, §51 (amd).]

A penalty shall accrue automatically on underpayments of the required installment amount for the period of underpayment at the rate provided pursuant to section 186. For cause, the State Tax Assessor may waive or abate all or any part of the penalty.
[1999, c. 414, §51 (amd).]
      6. Joint estimated tax payment. If they are eligible to do so for federal tax purposes, a husband and wife may jointly estimate tax as if they were one taxpayer, in which case the liability with respect to the estimated tax shall be joint and several. If joint estimate payment is made, but husband and wife elect to determine their taxes under this chapter separately, the estimated tax for the year may be treated as the estimated tax of either husband or wife, or may be divided between them, as they may elect.[1985, c. 691, §§35, 48 (rpr).]
      7. Short taxable year. Payment of taxes for a short taxable year must be made as provided in this subsection.
   
A. For an individual, a trust or an estate with a taxable year of less than 12 months, the estimated tax must be paid in full by the 15th day of the month following the end of the taxable year. [2001, c. 583, §18 (amd).]    
B. For a corporation or financial institution with a taxable year of less than 12 months, the estimated tax must be paid in full by the 15th day of the last month of the taxable year. [2001, c. 583, §18 (amd).] [2001, c. 583, §18 (amd).]
      8. Installments paid in advance. At the taxpayer's election, any installment of estimated tax may be paid prior to the date prescribed for its payment.[1985, c. 691, §§35, 48 (new).]
      9. Underpayment of 4th installment. If, on or before January 31st of the following taxable year, an individual, trust or estate files a return and pays in full the tax liability for the taxable year of the return, no penalty may be imposed with respect to any underpayment of the 4th required installment for that year.[2001, c. 583, §19 (amd).]
      10. Farmer or fisherman; underpayment. If an individual is a farmer or fisherman for any taxable year, then no penalty may be imposed with respect to any underpayment of the required installment of estimated tax, if on or before March 1st of the following taxable year, that individual files a return for the taxable year and pays in full his tax liability for the taxable year of the return.[1985, c. 691, §§35, 48 (new).]

Section History:
P&SL 1969,  Ch. 154,   §F1 (NEW).
PL 1971,  Ch. 61,   §5 (AMD).
PL 1975,  Ch. 454,   §1 (RPR).
PL 1977,  Ch. 517,   §1 (AMD).
PL 1979,  Ch. 615,   §6 (AMD).
PL 1985,  Ch. 691,   §35,48 (RPR).
PL 1991,  Ch. 9,   §CC1,DD1-3 (AMD).
PL 1991,  Ch. 9,   §CC2,DD4 (AFF).
PL 1991,  Ch. 528,   §DDD1 (AMD).
PL 1991,  Ch. 528,   §DDD2,RRR (AFF).
PL 1991,  Ch. 591,   §DDD1 (AMD).
PL 1991,  Ch. 591,   §DDD2 (AFF).
PL 1997,  Ch. 526,   §14 (AMD).
PL 1997,  Ch. 668,   §35 (AMD).
PL 1997,  Ch. 668,   §43 (AFF).
PL 1999,  Ch. 414,   §50-52 (AMD).
PL 2001,  Ch. 583,   §18,19 (AMD).