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Maine sales tax notices

Got a letter from the Maine Revenue Services (MRS)? Find it below to see what it means, why businesses usually receive it, and what to do next.

Sources checked

Tax authority

Maine Revenue Services (MRS) (opens in a new tab)

Disagree with a notice?

To dispute an assessment or determination, file a written Petition for Reconsideration with MRS. Mail it to Division Reconsideration, Maine Revenue Services, P.O. Box 1060, Augusta, ME 04332-1060, with a copy of the notice and supporting documents. MRS generally decides within 90 days. Collection usually stops while the petition is pending, except for jeopardy assessments. Interest keeps accruing. You can appeal the reconsidered decision within 60 days of receipt, to the Maine Board of Tax Appeals (if $1,000 to $500,000 was in dispute) or to Superior Court. Only notices that include appeal rights can be petitioned.

Deadline: 60 days from receipt of the notice of assessment or determination (postmarked or delivered)

Source: Maine Revenue Services (MRS) (opens in a new tab)

Failure to file

The authority has no return on record for a period it expects one, often because an account is open but filings stopped.

Failure to file

Demand notice (formal demand to file a return)

A formal written demand from MRS that a required return be filed. A demand to file is not an appealable determination.

Why you got it

  • A required return, such as sales and use tax, that was not filed by its due date

What to do

  1. Check whether the return for that period was already filed
  2. File the return within 60 days of receiving the demand. If you need more time, ask in writing before the 60 days end (up to 90 more days)
  3. Pay the tax due to limit further penalties and interest. If you had reasonable cause for filing late, you can ask MRS to waive the penalty once it is assessed

Before you pay penalties: check whether you can ask for them to be waived, and what the state needs paid first. How to ask

Response window: 60 days after receiving the demand; if not filed, the penalty rises to $25 or 25% of the tax due, whichever is greater

Source: Title 36, §187-B: Penalties (opens in a new tab)

Assessment

A proposed or final determination of tax owed, sometimes estimated when returns were never filed.

Assessment

Notice of Assessment

A formal MRS assessment of tax, interest, and penalties that includes appeal rights. It can be disputed through a Petition for Reconsideration.

Why you got it

  • Audit findings
  • Unfiled or underpaid returns

What to do

  1. Check the assessment against your records
  2. If you disagree with the tax or the penalties, file a Petition for Reconsideration within 60 days of receipt, with a copy of the assessment and detailed supporting documents. Penalties can be disputed on reasonable-cause grounds
  3. If you agree with the tax, pay what you can and call MRS about a payment plan

Before you pay penalties: check whether you can ask for them to be waived, and what the state needs paid first. How to ask

Response window: 60 days from receipt

Source: Your Rights as a Taxpayer | Maine Revenue Services (opens in a new tab)

Assessment

Jeopardy assessment

A special assessment that must be paid right away, or secured with a bond or other security, to prevent immediate collection.

Why you got it

  • MRS determines that collection of the tax is in jeopardy

What to do

  1. Pay right away, or file a bond or other security to stop immediate collection
  2. You can still file a Petition for Reconsideration within 60 days

Before you pay penalties: check whether you can ask for them to be waived, and what the state needs paid first. How to ask

Response window: Payment or security immediately; petition within 60 days of receipt

Source: Your Rights as a Taxpayer | Maine Revenue Services (opens in a new tab)

Audit

A request for records or notice that the authority is examining your returns.

Audit

Audit notification

Notice that the business is scheduled for an MRS audit. Auditors will set a convenient time and tell you in advance which records to have ready.

Why you got it

  • The business was selected for audit

What to do

  1. Have the requested books and records ready, including electronic records
  2. Expect more record requests as the audit goes on
  3. If a representative will act for you, file Form 2848-ME

Source: Your Rights as a Taxpayer | Maine Revenue Services (opens in a new tab)

Collections

Enforcement on unpaid balances, such as liens, levies, warrants, or referral to a collection agency.

Collections

Demand letter (10-day notice before enforced collection)

A letter, sent by certified mail or personal service, demanding full payment of a tax that has no appeal rights left. It explains your rights during enforced collection. Enforced collection can include levies on bank accounts and wages, seizure and sale of property, and blocking or revoking Maine professional licenses.

Why you got it

  • An assessment with no remaining appeal rights that is still unpaid

What to do

  1. Pay the full amount within 10 days of receipt
  2. If you cannot pay, contact MRS Compliance/Collections about a payment plan
  3. If not paid within 10 days, a 25% penalty on the tax due may apply
  4. Within three years of the assessment you can still ask MRS to abate penalties, but collection can continue and a refusal cannot be appealed

Before you pay penalties: check whether you can ask for them to be waived, and what the state needs paid first. How to ask

Response window: 10 days from receipt

Source: Title 36, §171: Demand letter (opens in a new tab)

Ask for penalty relief

Penalties on a Maine notice aren't always final. You can ask for them to be waived. Follow the steps below, including anything the state requires you to file or pay before it reviews the request.

Penalty waiver for reasonable cause (requested through a Petition for Reconsideration)

Petition for Reconsideration
  1. Pay what you can and call MRS about a payment plan, since interest keeps accruing
  2. Within 60 days of receiving the assessment, file a Petition for Reconsideration listing the penalties (and any interest) you dispute and explaining your reasonable cause. Attach a copy of the notice and supporting documents
  3. Mail it to Maine Revenue Services, PO Box 1060, Augusta, ME 04332-1060
  4. If you miss the 60 days, you have three years from the assessment date to ask MRS to cancel or abate tax, interest, or penalties in certain situations, but a refusal cannot be appealed

What qualifies: Reasonable cause, including erroneous information from MRS, death or serious illness of the taxpayer or an immediate family member, or a natural disaster. Negligence, fraud, and insufficient-funds penalties are not eligible for abatement

Interest: MRS may waive interest in certain unusual circumstances, but these cases are rare. You can request reconsideration of interest by petitioning

Source: Your Rights as a Taxpayer | Maine Revenue Services (opens in a new tab)

Before you respond

  • Check the date on the notice. Response windows usually run from that date, not the day you open it.
  • Match the account number and filing period to your own records before paying or disputing.
  • If returns are missing, filing the actual returns usually replaces an estimated bill. Confirm how on the notice or with the authority.
  • Ask about penalty relief before paying penalties, and check what must be paid with the request. See how
  • Keep a copy of the notice and everything you send back.

This page is general information, not tax or legal advice. Notice names and procedures change, so always follow the instructions on your notice and the official sources linked above.

Need the rates, nexus thresholds and filing rules? Read the Maine sales tax guide.

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