Maine Unfiled Sales Tax Returns Checklist
What This Issue Means
An unfiled sales tax return is a required monthly, quarterly, or annual report that was not submitted to Maine Revenue Services by its due date. The return reports total sales, tax collected from customers, and net amounts owed to the state after allowable deductions. When returns remain unfiled, the state has no official record of your tax compliance for that period, which triggers administrative follow-up and potential enforcement action by state tax authorities.
Why the State Requires This
The State of Maine requires sales tax returns on a regular schedule because it needs timely information on tax collection and revenue. Unfiled tax returns prevent the state from tracking whether state sales tax is being collected and remitted correctly under sales and use tax laws.
The state’s systems automatically identify unfiled returns when deadlines pass without submission. Common reasons include missed deadlines, address changes, confusion about tax obligations, or accounting errors.
What Happens If This Is Ignored
Ignoring unfiled returns can lead to escalating enforcement actions by Maine Revenue Services.
The agency may issue additional notices demanding filing and payment while penalties and interest accrue on unpaid amounts. The state may assess tax based on available information or estimates if returns are not filed within specified timeframes. Collection actions, including wage garnishment, bank levies, or state tax lien filings, may follow as the tax debt grows larger over time.
What This Does Not Mean
An unfiled return does not mean your business license has been automatically suspended or revoked. This situation does not mean you are under criminal investigation or that the state has already seized accounts or filed a tax lien. An unfiled return notice is a tax compliance matter that provides an opportunity to file or contact the state before formal enforcement begins.
Step-by-Step Checklist
Step 1: Locate Notice and Identify Unfiled Period
Gather any notice from Maine Revenue Services regarding the unfiled return and note the covered period, missed deadline, and filing requirements. If no notice was received, but returns may be unfiled, contact Maine Revenue Services immediately to confirm which periods require action.
Step 2: Gather Complete Sales Records
Collect all sales documentation, including receipts, invoices, and point-of-sale records for the unfiled period, organized by date or category. Include financial records of sales tax collected from customers, and if original documents are unavailable, gather bank statements or accounting software reports showing sales activity.
Step 3: Calculate Sales and Tax Amounts
Calculate total gross sales for the unfiled period and determine total sales tax collected at the state sales tax rate of 5.5 percent. Calculate allowable deductions, including resales with valid exemption certificates or exempt sales, then arrive at the net tax owed to the state after all proper adjustments.
Step 4: Review Account Status with Maine Revenue Services
Contact Maine Revenue Services at 207-624-9784 or taxpayerassist@maine.gov to request a current account statement showing which periods remain unfiled. Access the Maine Tax Portal or call to ask whether assessments or penalties have been issued and request copies of outstanding notices to confirm your exact status.
Step 5: Complete All Outstanding Return Forms
Complete missing sales tax return forms using your calculated sales and tax figures, including gross sales, taxable sales, tax collected, deductions, and net tax owed. Maine Revenue
Services provides return forms on its website, and all delinquent taxes must be filed, even if significantly overdue, to achieve tax compliance.
Step 6: Calculate Total Payment Including Penalties
Calculate total tax liability across all unfiled periods, noting that failure to file penalties and interest will have accrued on unpaid amounts. Contact Maine Revenue Services to obtain the exact tax debt owed, including calculated penalties and interest, then prepare a payment with written identification of covered periods and account number.
Step 7: Submit Returns and Payment Together
Send completed returns and payment to Maine Revenue Services at the address provided on the website or notice using certified mail or trackable delivery. Keep copies of all submitted financial data and retain confirmation receipts or proof of delivery for your business tax records and future reference.
Step 8: Wait for State Processing Confirmation
Allow adequate time for Maine Revenue Services to process your submission and send confirmation or updated account statements. Processing times vary based on complexity and volume, so do not assume resolution until receiving official confirmation from the state regarding your filing and payment.
- Missing notice deadlines: The state provides deadlines for filing and paying taxes that
- Filing incomplete returns: Returns with missing information or mathematical errors
- Paying without filing returns: Sending payment without submitting actual return forms
- Not keeping submission copies: Always retain proof that returns and payments were
- Using incorrect account information: Ensure all submissions clearly identify your
- State tax notice review and response
- Penalty and interest reduction options
- Payroll and trust fund tax assistance
- Payment plan and relief eligibility review
- Representation with state tax agencies
Step 9: Respond to Follow-Up Communication
Open and read all correspondence from Maine Revenue Services regarding your filing and respond promptly to requests for additional information or documentation. If the state issues revised assessments or notices, review them carefully and contact the agency immediately with questions about calculations or additional tax liability.
Common Mistakes to Avoid must be taken seriously. Missing secondary deadlines can trigger additional enforcement action and increase the negligence penalty or fraud penalty beyond the initial amounts assessed for tax problems. may be rejected or cause significant processing delays. Double-check all figures and required fields before submitting to avoid complications with your filing and potential tax audit issues. does not resolve unfiled return issues. Both the completed return form and the corresponding payment are required to achieve tax compliance and avoid continued enforcement action. submitted to protect yourself if the state claims non-receipt. Use certified mail or electronic filing systems that provide confirmation documentation for all submissions and financial records. business name and sales tax account number. Misfiled submissions may not be properly credited to your account, causing continued tax compliance issues despite your efforts to resolve outstanding obligations.
Payment Options and Tax Resolution
If you cannot pay the full tax debt immediately, Maine Revenue Services may offer installment agreements or other payment arrangements based on your financial circumstances. Tax professionals or a tax attorney can help negotiate payment plans or explore tax resolution
options. In some cases, businesses facing severe economic hardship may qualify for currently not collectible status or other tax relief programs administered by the Department of Revenue.
Getting Professional Help
If you have complex tax problems or multiple unfiled tax returns spanning several years, consulting tax professionals or a tax specialist may be beneficial. A tax attorney or tax debt specialist can assist with navigating the tax relief process, negotiating with state tax authorities, and ensuring proper tax compliance. When selecting tax services or tax relief companies, verify credentials through state bar associations and review professional ratings before engaging representation for your tax obligations.
Frequently Asked Questions
Can Penalties Be Reduced or Waived?
Maine Revenue Services has the authority to abate penalties when reasonable cause exists, including erroneous agency information, death or serious illness, natural disasters, good-faith compliance efforts, or first-time violations. Penalty abatement requires a written request with an explanation of the circumstances, and the assessor must waive penalties when reasonable cause is established under state tax law.
Is There a Statute of Limitations?
Maine has a three-year lookback period for assessments from the later of the return filing date or the due date. However, when no return is filed, or a fraudulent return is submitted, there is no statute of limitations, and the state can assess tax for those periods indefinitely.
What If Records Are Missing?
File returns using the best available information, such as bank deposits, accounting software records, or receipts, if original financial records are unavailable. Note on the return that records are incomplete, and contact Maine Revenue Services before filing if records are significantly incomplete to discuss your situation and available options.
Can I Use the Voluntary Disclosure Program?
The Voluntary Disclosure Program allows taxpayers to come forward voluntarily to resolve past unfiled tax returns and unpaid state taxes before the state initiates contact. A Voluntary
Disclosure Application may limit the lookback period and reduce penalties, providing a pathway to tax compliance for businesses with multiple unfiled periods or unreported tax obligations.
Received a State Tax Notice?
If you’ve received a state tax notice and aren’t sure how to respond, we can help you review your options and next steps.
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