Maine Revised Statutes Title 36 — Taxation

36 M.R.S. § 5195

Definitions

Official textlegislature.maine.gov25 subsections

As used in this subchapter, unless the context otherwise indicates, the following terms have the following meanings.

# 1.

Administrative adjustment request.
"Administrative adjustment request" means an administrative adjustment request filed by a partnership pursuant to the Code, Section 6227.

# 2.

Audited partnership.
"Audited partnership" means a partnership subject to a partnership-level audit resulting in a federal adjustment.

# 3.

Composite return.
"Composite return" means a Maine income tax return filed by a partnership or pass-through entity on behalf of some or all of its partners, beneficiaries or shareholders under rules adopted by the assessor.

# 4.

Corporate partner.
"Corporate partner" means a partner that is subject to tax pursuant to chapter 817 .

# 5.

Direct partner.
"Direct partner" means a partner that holds an interest directly in a partnership or pass-through entity.

# 6.

Exempt partner.
"Exempt partner" means a partner that is subject to the tax imposed by chapter 819 or exempt from the taxes imposed by chapters 803 , 809 and 817 , except to the extent of unrelated business taxable income.

# 7.

Federal adjustment.
"Federal adjustment" means an adjustment to an item or amount determined under the Code that affects the computation of a taxpayer's Maine tax liability resulting from a partnership-level audit or other action by the IRS or an amended federal return, refund claim or administrative adjustment request filed by a taxpayer. A federal adjustment is positive to the extent that it increases taxable income and is negative to the extent that it decreases taxable income, as determined under this Part.

# 8.

Federal adjustments report.
"Federal adjustments report" means a method or form required by the assessor for use by a taxpayer to report final federal adjustments, including an amended tax return and an information return. A federal adjustments report is a return for purposes of this Title, including for the purpose of determining refund and assessment periods, interest and penalties.

# 9.

Federal partnership representative.
"Federal partnership representative" means the person designated by a partnership or appointed by the IRS to act on behalf of a partnership pursuant to the Code, Section 6223(a) for the reviewed year.

# 10.

Final determination date.
"Final determination date" has the same meaning as in section 5227‑A, subsection 2 .

# 11.

Final federal adjustment.
"Final federal adjustment" means a federal adjustment for which the final determination date has passed.

# 12.

Indirect partner.
"Indirect partner" means a partner in a partnership or pass-through entity that itself holds an interest directly, or through another indirect partner, in a partnership or pass-through entity.

# 13.

IRS.
"IRS" means the United States Internal Revenue Service.

# 14.

Nonresident partner.
"Nonresident partner" means an individual, trust or estate partner that is not a resident partner.

# 15.

Partner.
"Partner" means a person that holds an interest directly or indirectly in a partnership or pass-through entity.

# 16.

Partnership.
"Partnership" means an entity subject to taxation under the Code, Subtitle A, Chapter 1, Subchapter K other than a financial institution subject to tax pursuant to chapter 819 .

# 17.

Partnership-level audit.
"Partnership-level audit" means an examination by the IRS at the partnership level pursuant to the Code, Subtitle F, Chapter 63, Subchapter C that results in federal adjustments.

# 18.

Pass-through entity.
"Pass-through entity" means an entity, other than a partnership, that is not subject to tax under chapter 817 or 819 .

# 19.

Resident partner.
"Resident partner" means a partner that is a resident individual or a resident estate or trust under this Part

# 20.

Reviewed year.
"Reviewed year" means the taxable year of a partnership that is subject to a partnership-level audit, or that files an administrative adjustment request, from which federal adjustments arise.

# 21.

State partnership representative.
"State partnership representative" means a partnership's federal partnership representative for the reviewed year unless the partnership designates in writing another person as its state partnership representative.

# 22.

Taxpayer.
"Taxpayer" has the same meaning as in section 111, subsection 7 and includes a partnership subject to a partnership-level audit or a partnership that has made an administrative adjustment request, as well as a tiered partner of that partnership.

# 23.

Tiered partner.
"Tiered partner" means a partner that is a partnership or pass-through entity.

# 24.

Unrelated business taxable income.
"Unrelated business taxable income" has the same meaning as in the Code, Section 512.

Last amended: PL 2019, c. 380, §2 (NEW). PL 2019, c. 380, §5 (AFF). PL 2021, c. 181, Pt. A, §6 (AMD). PL 2025, c. 271, Pt. C, §3 (AMD).

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