1 What we are: An independent Board of three individuals appointed - PowerPoint PPT Presentation

2014 Maine Tax Forum Maine Board of Tax Appeals 1

What we are: • An independent Board of three individuals appointed by the Governor to resolve controversies between Taxpayers and Maine Revenue Services (MRS). • Supported by the Appeals Office, which holds hearings, evaluates evidence, and prepares recommended decisions. • Final decisions made by the Board members. 2

Board Members William J. Kelleher - Chair Edwin A. Heisler Richard A. Nass 3

To contact us: • Office located at 108 Sewall Street in Augusta (opposite the Cross Office Building) • Mailing Address: Maine Board of Tax Appeals 134 State House Station Augusta, ME 04333-0134 (use 108 Sewall Street for couriers such as FedEx or UPS.) • Telephone: 207-287-2864 • Website: http://www.maine.gov/boardoftaxappeals 4

Appeals Office Staff Chief Appeals Officer – Robert Creamer Appeals Officers – Paul Bourget Gerard Poissonnier Administrative Assistant – Lisa Stevens 5

Appeals Process • Taxpayers can appeal “reconsidered decisions” issued by MRS, with at least $1,000 at issue. • Board considers appeals de novo. • See Rule 100 - Maine Board of Tax Appeals Rules of Practice and Procedure. • Taxpayer’s Guide on our website: http://www.maine.gov/boardoftaxappeals 6

Appeal Process (continued) • Appeal is assigned to an Appeals Officer (AO). • AO and parties hold a case management conference. • Parties then submit written arguments and evidence per schedule established by AO. • If requested in a timely manner, AO will hold an appeal conference. • AO will draft a recommended decision. 7

Appeal Process (continued) • Parties given a chance to review and comment on recommended decision. • AO may revise in light of comments. • Parties can: – Submit short written statements directly to Board members; and – Request to address Board members in person. • Board will meet to render a final decision. 8

New Procedures • Submitting information to the AO: – New schedule and page limits. • Addressing the Board at its meeting: – New deadlines for written statements and requests to speak. – New meeting procedure. 9

Why appeal to the Board? • Not enough money involved for Superior Court, but taxpayer wants an independent review. • Substantial amount of money involved, but Board’s independent review may avoid the need to go to court. • Another chance to work with MRS to possibly settle. 10

Why appeal to the Board? • Appeals are usually decided in about five months. • Taxpayers do not need to be represented by an attorney. • Other than the $100 fee for an appeals conference, there are no charges. • Board proceedings are closed to the public. 11

Board History • Forty six cases filed so far. • Amount at issue has ranged from just over $1,000 to $1.2 million. • Taxpayers have included both individuals and large corporations. 12

Resolution/Status of Appeals • 14 have been resolved by a Board decision. • 24 have settled. • 8 are still pending. 13

Sales and Use Taxes • 17 appeals have been from sales/use tax assessments. • Issues within sales and use tax: – Use of the corporate form. – Responsible individual (36 M.R.S. § 177). – Collection on rental of living quarters. – Interim rentals of equipment and vehicles. – Confusion on sales v. use tax for rentals. – Application of exemptions. 14

Individual Income Tax • 16 cases have involved individual income tax. • Topics include: – Failure to file. – Pass-through entities. – Taxes paid to another state. – Domicile. 15

Corporate Income Tax • Six appeals have concerned corporate income tax. • Issues involved include: – Nexus. – Classification of business entity (corporation v. financial institution). – Unitary business. 16

Service Provider Tax • Three appeals have been about service provider tax. • All three involved telecommunications: – Two were concerned with whether services were interstate and thus exempt. – The third hinged on whether certain services were part of the installation of telecommunications equipment. 17

Service Provider Tax • There is not a lot of guidance out there on the SPT. • Maine courts have never issued a ruling on this tax. • Best sources of information are MRS’s Sales Tax Bulletins 55 and 56. 18

Estate Tax • Three appeals have been in area of estate tax. • Two have settled. • The third was appealed to Superior Court, which recently issued a decision. • Issue was how to calculate the Maine taxable estate for non-residents, under previous statute. 19

Abandoned Deposits • One case on abandoned deposits for redeemable bottles. • These amounts are treated as a tax. • Controlled by 32 M.R.S. § 1866-E. • Deposits to be kept in a separate account and monthly returns filed with MRS. • Each violation of § 1866-E is subject to a $100 penalty. 20

Further Appeals • Four Board decisions have been appealed to Superior Court. • Three are still in court proceedings. • Ruling in State Tax Assessor v. Estate of C.G. Berwind, et. al . was issued on 7 July 2014. 21

For any questions: Robert Creamer Chief Appeals Officer Maine Board of Tax Appeals 207-287-2866 robert.a.creamer@maine.gov 22