18-125 C.M.R. ch. 104, § 03 - Mandatory Participation

The following returns and applications must be submitted by electronic data submission in accordance with this section, unless a waiver from mandatory participation under section .04 has been granted:

A. Individual income tax returns. A tax return preparer must file by electronic data submission all Maine tax returns for individual income tax, unless:

1. During the previous calendar year, the tax return preparer prepared 10 or fewer Maine tax returns for individual income tax; or

2. The taxpayer refuses to allow the return to be filed by electronic data submission and the tax return preparer notes the refusal in the taxpayer's records.

B. Sales, use, and service provider tax returns. A tax return preparer must file all Maine tax returns for sales, use, or service provider tax by electronic data submission.

C. Income tax withholding, REW, and pass-through entity withholding returns.

1. Employers that are registered for Maine income tax withholding, third-party filers or payroll processors as defined in 10 M.R.S., Chapter 222, fiscal agents designated in accordance with 36 M.R.S. §5250(5), and non-wage payers that are subject to Maine income tax withholding under 36 M.R.S. §§5255-B and 5255-C must file by electronic data submission all Maine quarterly returns with respect to Maine income tax withholding.

2. Pass-through entities with any nonresident members that are subject to pass-through withholding on Maine-source income must file Form 941P-ME by electronic data submission.

3. A buyer of real property located in Maine who is required to withhold Maine income tax under 36 M.R.S. §5250-A(2), or the REW filer for such buyer, must, for returns due on or after January 1, 2025, file Forms REW-1-1040, REW-1-1041, and REW-11120 by electronic data submission.

4. A nonresident seller (determined in accordance with the provisions of 36 M.R.S. §5250-A) of real property located in Maine that submits Form REW-5 to request an exemption or reduction in the real estate withholding amount, or the REW filer for such seller, must, for Forms REW-5 submitted on or after May 1, 2025, file Form REW-5 by electronic data submission.

D. Corporate income tax returns. Corporations, including tax-exempt entities, required to file Form 1120ME with total assets of $5 million or more as of the last day of the tax year must file returns by electronic data submission. For returns filed in calendar year 2025 or any subsequent calendar year, corporations, including tax-exempt entities, subject to the tax imposed by 36 M.R.S., Chapter 817 and a tax return preparer for such corporation that is required to file the federal corporate return electronically for the taxable year must file Maine Form 1120ME by electronic data submission.

E. Real estate transfer tax returns. Starting with returns filed in calendar year 2021, a tax return preparer must file by electronic data submission all Maine tax returns for real estate transfer tax, except where the tax return preparer prepared fewer than 10 Maine tax returns for real estate transfer tax in the previous calendar year.

F. Franchise tax returns. Starting with returns filed in calendar year 2025, a financial institution subject to the tax imposed by 36 M.R.S., Chapter 819 and a tax return preparer for such financial institution must file by electronic data submission all Maine tax returns for franchise tax.

G. Insurance premiums tax returns. Starting with returns filed in calendar year 2025, a person subject to the taxes imposed by 36 M.R.S., Chapter 357, or 25 M.R.S. § 2399, and a tax return preparer for such person, must file by electronic data submission all Maine tax returns required by 36 M.R.S. §§2521-A and 2531(3).

H. Fuel tax returns. Starting with returns filed in calendar year 2025, a tax return preparer must file by electronic data submission all Maine gasoline distributor and/or special fuel supplier tax returns, including the annual shrinkage returns and schedules.

I. Special tax returns. Starting with returns filed in calendar year 2025, a tax return preparer must file by electronic data submission all Maine special tax returns.

J. Applications for the refundable seed capital investment tax credit by private venture capital funds under 36 M.R.S. §5216-B(2). Starting with applications filed in calendar year 2025 for investments made in calendar year 2024 or later, a private venture capital fund and a tax return preparer for such fund must file by electronic data submission all applications for the refundable seed capital investment tax credit under 36 M.R.S. § 5216-B(2).

K. Applications for the certified visual media production wage reimbursement under 36 M.R.S., Chapter 919-A. Starting with applications filed in calendar year 2025, a visual media production company and a tax return preparer for such company must file by electronic data submission all applications for the certified visual media production wage reimbursement under 36 M.R.S., Chapter 919-A.

L. Income tax returns for estates and trusts. Starting July 1, 2025, a tax return preparer must file by electronic data submission all Maine income tax returns for estates and trusts, unless during the previous calendar year, the tax return preparer prepared 10 or fewer Maine income tax returns for estates and trusts.

M. Partnership audit returns and reports. Starting January 1, 2026, a partnership required to report federal adjustments under §§ 5195-5198, and the tax return preparer or state partnership representative for such partnership, must file by electronic data submission all Maine tax returns and reports required to be filed pursuant to 36 M.R.S. §§ 5195-5198.

Notes

18-125 C.M.R. ch. 104, § 03