The purpose of the Voluntary Disclosure Program is to provide an opportunity for businesses and individuals who recently became aware of unfiled or underreported Maine tax obligations to come forward and meet such obligations voluntarily, without having to pay penalties. The program covers all taxes administered by Maine Revenue Services - including individual income, corporate income, withholding, sales & use, and service provider taxes.
Eligibility:
To be eligible, you must not have been contacted by Maine Revenue Services concerning your tax status, any tax liability, or any tax audit with respect to any tax type(s) disclosed on the application.
Process:
All applicants must electronically submit the application through the Maine Tax Portal, alternatively, you can download and complete a paper Voluntary Disclosure Application which outlines, among other things, the following:
- a reasonable estimate of the taxes that you owe for all outstanding periods,
- the reason that you failed to report and pay those taxes, and
- if you are requesting a limited look back period, why you think you qualify.
Second, we'll review your application and determine if you're eligible. If we approve your application and approve the requested lookback period, we'll send you a Voluntary Disclosure Agreement, which will cover only the taxes and tax periods that have been accepted. Upon returning the signed Voluntary Disclosure Agreement, the taxpayer will be required to disclose their identity (i.e., if the taxpayer has remained anonymous up until this point).
Lookback Period:
Maine Revenue Services will normally require a lookback period for which the taxpayer will be required to pay delinquent taxes and related interest. The lookback period is generally three years for all tax types. However, the length of the lookback period will depend on several factors, including, but not limited to, the taxpayer's activities and other information submitted in the application. For any tax that was collected but not remitted (e.g., sales tax or withholding), the lookback period will be extended as far back as necessary to recover the collected tax.
Penalty Abatement:
In exchange for payment of the tax and interest, Maine Revenue Services will waive any applicable penalties and agree not to pursue liabilities (tax, interest, or penalties) prior to the lookback period.
The Voluntary Disclosure Application may be mailed to:
Maine Revenue Services
Voluntary Disclosure Program
P.O. Box 1060
Augusta, ME 04330-1060
The Voluntary Disclosure Application may also be submitted by fax at (207) 822-0453 or email at audit.tax@maine.gov.