- What is Form 1098-F?
- What constitutes a "violation of any law?"
- What amounts that are required to be paid are considered?
- How was the amount that was required to be paid calculated?
- What do I do with the Form 1098-F I received?
Form 1098-F, "Fines, Penalties, and Other Amounts," is a statement of certain amounts required to be paid by persons for a "violation of law" if the total amount at issue is at least $50,000.
Federal law requires state government agencies, including state tax agencies like Maine Revenue Services, to file Form 1098-F with the IRS and to furnish a copy of the form to payors. For more information, see Internal Revenue Code Section 6050X or Treasury Regulation Section 1.6050X-1.
Revised: April 2, 2026
2. What constitutes a "violation of any law?"
The Internal Revenue Service (IRS) has specifically instructed state tax agencies that a "violation of law" must be determined under the laws of each respective state.
However, the IRS issued guidance to state tax agencies suggesting that a "violation of any law" may occur under state law for amounts assessed as underpayments of tax, interest, and/or penalties, even when penalties are abated. Until the IRS provides additional guidance, a "violation of any law," for Maine tax law purposes, is considered to have occurred if the amount assessed is at least $50,000.
Revised: April 2, 2026
3. What amounts that are required to be paid are considered?
Amounts that are required to be paid that are at least $50,000 will be considered for reporting under the Internal Revenue Code Section 6050X, if required to be paid in relation to the following non-exhaustive list of situations:
- Decisions by officials, such as assessments, that are administratively binding (e.g., the assessment is final).
- Administrative adjudications, such as Maine Revenue Service's final decision on reconsideration, regardless of any further appeal rights at the Maine Board of Tax Appeals or the Maine Superior Court.
- Settlement agreements or judicial proceedings that establish a final liability.
See e.g., Treasury Regulation Section 1.162(e)(5).
Revised: April 2, 2026
4. How was the amount that was required to be paid calculated?
Maine Revenue Services calculated the amounts shown in Box 1 of Form 1098-F based on the total amount required to be paid during the calendar year shown on the form. The amount shown is the total tax, plus any penalties and interest.
Revised: April 2, 2026
5. What do I do with the Form 1098-F I received?
Maine Revenue Services cannot provide federal tax advice. However, the Internal Revenue Service has provided additional information at: irs.gov/forms-pubs/about-form-1098-f.
Revised: April 2, 2026