Assessments
An assessment may not be made after ____ years from the date the return was filed or the date prescribed for filing the return, whichever is ______.
3 Years
later
The State has ____ days to approve or deny, in whole or in part, reconsideration of an assessment.
90 Days
Name the four types of penalties that can be assigned to taxpayers.
Failure to File
Failure to Pay
Negligence/Fraud
Substantial Understatement
Records pertaining to sales tax must be retained by the taxpayer for at least ____ years.
6
True of False:
Under certain circumstances, interest charges may be suspended during the reconsideration process.
False
For an exception to be made to the 3-year time limit, the tax liability on the return must be less than ____% of the amount determined by the assessor.
50%
True or False
After an offer in compromise is accepted, the case can not be reopened by the taxpayer nor the assessor.
True:
Unless there is falsification or concealment of assets
The fee imposed for insufficient funds on a payment is $_____ or _____% of the payment amount, whichever is greater.
$20
1%
True or False
Taxpayers are allowed to make audio recordings of any in-person interview concerning the determination and collection of any tax.
True
If a taxpayer has a tax liability, and receives THIS type of additional income, the income can be set-off against the tax debt.
Lottery Winnings
True or False:
Assessments for fraudulent returns must be made within 6 years of the return filing or the date prescribed for the filing, whichever is later.
False:
An assessment may be made at anytime for a fraudulent return
The Maine Board of Tax Appeals Consists of:
___ Members Appointed by the Governor
No more than ___ can be members of the same political party
_____ designates one person to serve as chair
At least ___ but no more than ___ can be attorneys
3 appointed by Governor
2 members of a political party max
The Governor
1 but no more than 2
Substantial understatement penalties can be applied if the amount of the understatement exceeds ____% of the total tax or $_____, whichever is greater
10%
$1,000
DAILY DOUBLE!
If tax liability remained unpaid in an amount exceeding $1,000 for more than 15 days after notice, fails to cooperate and remain in compliance, these three licenses can be denied, suspended, or revoked.
Liquor License
Motor Vehicle Dealer
Adult Use Marijuana Licensed Establishment
The assessor may make supplemental assessments of a reviewed period if the previous assessment _______ or is otherwise ________ or _______.
Understates the tax due
Imperfect
Incomplete
True or False:
Assessments for returns that have not been filed must be made within 6 years of the return filing.
False:
An assessment may be made at any time
True or False
If a taxpayer files a petition for reconsideration within 90 days the taxpayer can still have it reviewed in Superior Court and before the board.
No.
Within 60 days
True of False:
Interest accrues on the tax liability and penalty.
False.
For assessments prior to January 1, 2018, the interest rate equals the _____ prime rate in the ___________ on the first day of _______ of the preceding calendar year, rounded up to the next whole percentage point, plus ______ percentage points.
highest
Wall Street Journal
September
3
At what monetary amount is intentional tax evasion raised from a misdemeanor to a felony offense?
Over $2000
True or False
If the assessor decides not to abate all or any part of an assessment, the taxpayer may request additional reconsideration.
False:
The decision of the assessor regarding cancelation and abatement of tax is not subject to review.
DAILY DOUBLE!
The State Assessor may compromise tax liability under two conditions:
1.
2.
1. Doubt as to liability
2. Doubt as to collectability
or both!
Which penalties are imposed automatically without being assessed by the State Tax Assessor?
Failure to File
Failure to Pay
For assessments made after January 1, 2018, the interest rate equals the _____ prime rate in the ___________ on the first day of _______ of the preceding calendar year, rounded up to the next whole percentage point, plus ______ percentage points.
Wall Street Journal
September
1
What are the "reasonable causes" that an assessor can waive or abate penalties? 7 are listed in statute. Name 3.
Failure to file or pay resulted directly from erroneous information provided by MRS
Death or serious illness of taxpayer/immediate family
Natural Disaster
Previous 12 months (or 3 years if not monthly) were timely
The taxpayer has supplied substantial authority justifying the failure to pay
The amount of penalty is de minimis