Maine Back Taxes Relief Guide: Resolve Tax Problems

Maine Revenue Services is responsible for administering all types of state tax laws and collecting taxes that are used to support Maine government. Like the IRS, Maine offers various ways for taxpayers to get back into compliance if they are having tax problems. Below are the programs offered by Maine Revenue Services to help individuals and businesses pay back their taxes if they cannot pay in full.

Payment Plans

If you are unable to pay your taxes owed in full, you should pay as much as you can toward your taxes owed, and contact Maine Revenue Services in order to set up a payment plan. This step may help you avoid significant penalties, although interest and some penalties will continue to accrue until your taxes owed is paid in full. For information about payment plans in general and setting up payment plans, you can contact:

Compliance Division
PO Box 9107
Augusta, ME 04332-9107
Telephone: (207) 621-4300
Fax: (207) 621-4328
Email: compliance.tax@maine.gov

Offer in Compromise

If you are unable to pay your taxes owed in full, you may be able to settle or compromise your liability for a lesser amount, under certain circumstances. If there is doubt that you will be able to pay the entire liability in the foreseeable future, reasonable doubt that that the liability is valid, or that you owe the liability, or both, then you may be eligible for an offer in compromise.

In order to request an offer in compromise, you must have filed all tax returns that are due. If the basis for your offer in compromise is based on a doubt as to liability, then you must include any documentation and explanation that supports the doubt as to your liability. On the other hand, if the basis for your offer in compromise is based on a doubt as to collectibility, you must submit a complete Personal Financial Statement. That financial statement should include your most recent federal income tax return, as well as your two most recent pay vouchers, unless you are self-employed.

Your request for an offer in compromise should be in the form of a letter. You should include the amount of your taxes owed that you are able to willing and pay, and a clear explanation as to why it would be in the best interest of the state to accept your offer in compromise. It is preferred that your offer consist of a single lump sum payment, but the offer can be paid in installments in some situations. You should mail your request letter to the following address:

Maine Revenue Services
Compliance Division
PO Box 1060
Augusta, ME 04332-1060

If Revenue Services accepts your offer, you will receive written notice by mail, along with a written agreement for you to sign and return. You should keep a copy of this agreement for your records.

Taxpayer Advocate

The Taxpayer Advocate is a division of Maine Revenue Services that provides assistance to taxpayers who have state tax problems that they have been unable to resolve through normal channels. You can reach the Taxpayer Advocate as follows:

By telephone:
(207) 624-9649

By fax:
(207)287-3618

By mail:
PO Box 9107
Augusta, ME 04332-9107

By email:
taxpayer.advocate@maine.gov

Our Simple Tax Relief Process