Tax News

CCH (cch.taxgroup.com) reports:

A rule has been proposed that will mandate participation by certain tax return preparers in the electronic filing of 2008 returns for the Maine individual income tax and the sales, use, and service provider tax. Electronic filing mandates will also apply to certain employers and pass-through entities that are subject to 2008 income tax withholding requirements.
Electronic filing of 85% of 2008 individual income tax returns will be required by tax return preparers that prepared 200 or more original Maine individual income tax returns in calendar year 2007. Electronic filing of sales, use, or service provider tax returns for the 2008 tax year will be required if tax liability on any original return prepared for any one tax for the 12-month period ending September 30, 2007, was $200,000 or more.
Employers, third party filers, or payroll processors with 75 or more employees in 2008 that are subject to Maine income tax withholding will be required to electronically file all original 2008 quarterly and annual reconciliation returns. Pass-through entities with 75 or more nonresident members in 2008 that are subject to pass-through withholding on Maine source income will be required to electronically file all original 2008 quarterly and annual reconciliation returns.
The thresholds for mandatory electronic filing will be reduced for calendar years beginning after 2008. The proposed rule also provides guidance on requesting a waiver and on penalties that may be imposed for noncompliance.
A public hearing on the rule is scheduled for January 9, 2008. The deadline for comments is January 21, 2008.
Subscribers to CCH Tax Research NetWork can view the complete text of the proposed rule, information on the public hearing, and other details.
Rule 104 , Maine Department of Administrative & Financial Services, Bureau of Revenue Services, December 19, 2007.