Maine § 2859. - Estimated tax requirements

§ 2859.. Estimated tax requirements

1.  Definitions.  As used in this section, unless the context otherwise indicates, the following terms have the following meanings.

A. "Allowable credits" means the total amount of payments by a taxpayer that have been or will be paid to the bureau prior to the date the payment against which they are to be used as a credit is due and that are available to offset any tax liability estimated under this chapter.   [PL 2025, c. 469, §37 (NEW); PL 2025, c. 469, §44 (AFF).]

B. "Estimated tax" means the total amount of tax that a person estimates will be due for a tax year under this chapter, after subtracting allowable credits for that tax year.   [PL 2025, c. 469, §37 (NEW); PL 2025, c. 469, §44 (AFF).]

C. "Period of underpayment" means the period of time from the date an estimated tax installment is due until the underpayment is satisfied or until the tax return to which the estimated tax installment applies is due, whichever is less.   [PL 2025, c. 469, §37 (NEW); PL 2025, c. 469, §44 (AFF).]

2.  Requirement to pay estimated tax.  A person subject to taxation under this chapter shall make payment of estimated tax as required by this chapter. The requirement to make estimated tax payments is waived if:

A. The person's tax liability pursuant to this chapter reduced by allowable credits for the tax year is less than $1,000 for the tax year; or   [PL 2025, c. 469, §37 (NEW); PL 2025, c. 469, §44 (AFF).]

B. The person had less than $1,000 tax liability under this chapter for the immediately preceding tax year.   [PL 2025, c. 469, §37 (NEW); PL 2025, c. 469, §44 (AFF).]

3.  Amount of estimated tax to be paid.  A person required to make payment of estimated tax under this chapter is liable for an estimated tax that is no less than the lesser of:

A. An amount equal to the person's tax liability under this chapter for the immediately preceding tax year, if that preceding year was a tax year of 12 months; and   [PL 2025, c. 469, §37 (NEW); PL 2025, c. 469, §44 (AFF).]

B. An amount equal to 90% of the person's tax liability under this chapter for the current tax year.   [PL 2025, c. 469, §37 (NEW); PL 2025, c. 469, §44 (AFF).]

4.  Amount of installment.  The amount of estimated tax to be paid in a tax year by a taxpayer is to be paid in installments by the dates established in this section. The amount of the estimated tax is to be paid in 4 equal installments unless the taxpayer establishes by adequate record the actual distribution of tax liability and allowable credits, or both, in which case the amount of the installment payments must be adjusted accordingly and be determined in accordance with the portion of the taxpayer's estimated tax liability applicable to that portion of the taxpayer's tax year, completed by the close of the month preceding the installment's due date, less estimated tax payments already made for the tax year.

5.  Due dates for estimated tax installments.  An estimated tax installment payment calculated pursuant to subsection 4 is due the 15th day of the 4th, 6th, 9th and 13th month following the beginning of the taxpayer's tax year.

6.  Penalty.  A penalty accrues automatically on underpayments of the required installment amount pursuant to subsection 4 for the period of underpayment at the interest rate provided pursuant to section 186. For cause, the assessor may waive or abate all or any part of the penalty.

7.  Short taxable year.  For a tax year of less than 12 months, the estimated tax must be paid in full by the 15th day of the last month of the tax year. For payment dates falling within the short taxable year, payment must be made as provided in subsection 5.

8.  Installments paid in advance.  At the taxpayer's election, an installment of estimated tax required pursuant to subsection 4 may be paid prior to the date prescribed for its payment.