Volume 28, Issue 2		May 2018

 

Many Maine Taxpayers May Need to File
AMENDED 2017 Maine Income Tax Returns

Generally, Maine income tax law has adopted the use of the most current United States Internal Revenue Code (the “Code”), and noted any exceptions to the use of the Code in the Maine Revised Statutes.  The recently proposed Maine Legislation, LD 1655 "An Act To Update References to the United States Internal Revenue Code of 1986 Contained in the Maine Revised Statutes," for Maine to conform to the Code through March 23, 2018 was not enacted.  This means that Maine will continue to reference the version of the Code as amended through December 31, 2016.  This also means that Maine has not adopted recent federal tax law changes that were made after December 31, 2016, including the federal Tax Cuts and Jobs Act enacted December 22, 2017, the Bipartisan Budget Act of 2018 enacted February 9, 2018, and the Consolidated Appropriations Act, 2018 enacted March 23, 2018.

Although most of the federal changes apply to tax years beginning on or after January 1, 2018, there are some changes that affect tax years beginning with tax year 2017.  This will require many taxpayers who have already filed their 2017 Maine income tax returns to amend those returns. 

Accordingly, Maine Revenue Services (“MRS”) expects to issue guidance within the next six weeks to inform taxpayers of the specific tax items and the procedures to be used to correctly file 2017 Maine income tax returns, amend 2017 Maine income tax returns already filed, and make changes to 2018 Maine estimated tax and withholding payments.  MRS anticipates that taxpayers will be able to use their existing tax software to file any necessary amended Maine income tax returns.