Tax Amnesty - Maine: New law authorizes 'Tax Receivables Reduction Initiative' with partial tax penalty and interest waiver

L.D. 1671, signed by gov. 3/31/10. Effective immediately, new law authorizes the department to administer two "Tax Receivables Reduction Initiatives" designed to raise revenue during the 2010-2011 fiscal year – a "short-term initiative" and a "five-year initiative" – that will generally run from September 1, 2010 to November 30, 2010. The short-term initiative will apply to tax liabilities that were assessed as of December 31, 2009, as well as interest and penalties subsequently assessed on such tax liabilities.

The five-year initiative will apply to tax liabilities that were assessed as of June 30, 2005, as well as interest and penalties subsequently assessed on such tax liabilities. Qualifying participants of the short-term initiative are entitled to a waiver of 95% of the penalties otherwise due; qualifying participants of the five-year initiative are entitled to a waiver of 95% of the tax penalties and interest otherwise due.

A taxpayer may participate in the initiatives without regard to whether the amount due is subject to a pending administrative or judicial proceeding. Participation in the initiatives is conditioned upon the taxpayer's agreement to forgo or withdraw a protest or an administrative or judicial proceeding with regard to liabilities paid under the initiatives, and not to claim a refund of money paid under the initiatives.