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Unfairly taxed in Maine?

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  • lawrencedaniels
    replied
    First of all, I was not "working" for a Maine company. I did NO physical work for the company, in ANY capacity! I was a contractor for a NJ consulting firm, doing cost reduction and productivity studies and implementation in the Phillips Lighting facility. I reported to my NJ boss, who had his assignment contract with headquarters in NJ. As he paid all his employees, all contractors, he withheld state taxes from whatever state they lived in. As I said before, I was the only person singled out from all his employees. I worked in almost every state in our country over the 30 years I was with that company, and Maine was the first and only one to claim I owe taxes to the state. The twelve months prior to visiting the facility in ME, I did the same project for their Phillips Lighting facility in Little Rock, AR. No problem there. I just find this so frustrating and unjust, but I don't know where to turn now. Somebody please help me.

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  • ScottB
    replied
    Originally posted by LdiJ View Post
    I am going to disagree with you. He/she was a tool provided by an NJ company, he was not an employee of the company located in Maine.
    He was an employee and he worked in Maine, although I still don't know how many days in each year (I do agree that being taxed on ALL income for the two years is unfair if not ALL of that income was earned while working in the state). State law (I provided the link) clearly lays out when non-resident workers here are subject to taxation.

    Maine is not the only state that does this. For example, Michigan

    Employers located outside Michigan who have employeesworking in Michigan must register with Treasury and withholdMichigan income tax from all employees working in Michigan.This applies to both Michigan residents and nonresidents.(See Reciprocal Agreements, page 4.) http://72.14.205.104/search?q=cache:...nk&cd=19&gl=us

    New York

    If a nonresident employee . . . performs services for his employer both within and without New York State, his income derived from New York State sources includes that proportion of his total compensation for services rendered as an employee which the total number of working days employed within New York State bears to the total number of working days employed both within and without New York State. . . . http://www.virtualcommuting.com/inde...ent/view/41/1/


    and West Virginia http://72.14.205.104/search?q=cache:...nk&cd=17&gl=us. Note that West Virginia specifically addresses the question of an employer located outside the state with employees working, however briefly, inside the state.

    Originally posted by LdiJ View Post
    There is sufficient case law out there to back that position
    I have been unable to find any. Point me in the right direction.

    Leave a comment:


  • lawrencedaniels
    replied
    During the total months I worked on the project at Phillips Lighting I was paid $60,000. Ironically, THEIR home office is in NJ, so even the company I was working for was not paid from Maine. Maine taxed me for the entire years of 1989 and 1990, based on my total income for those TWO years! Plus they have added on interest, and it comes to a total of $36,000 they want from me. Except for the time I spent at the project there, I was nowhere near that state. I have, over a period of years, sent them every documentation they asked for, and they would always come back with the same answer. It's like they never bothered to fairly evaluate it. They finally placed a judgement against me, and now I have received official notice that they will carry it out in garnishment of wages, etc. I am at a total loss as what I can now do to correct this situation. There were two other men who worked on the project with me in the same capacity and situation, and neither of them were taxed. This is so unfair and frustrating, but how do you fight the state government? LJ

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  • LdiJ
    replied
    Originally posted by ScottB View Post
    No one that reads a post before it gets edited learns about it being edited. The thread does not show up as one with new posts.

    During 1989 did you work more than ten days in Maine? If so, you owe taxes on the income earned while working in the state. Did you work more than ten days in Maine in 1990? If so, you owe.

    I have no idea how the Maine Revenue Service learned that had income nor do I have any idea about the NJ based owner and his taxable income. However, Maine would give credit for income taxes paid to another jurisdiction. The owner would be better off paying income taxes in New Jersey rather than in Maine since the income tax rates are lower in New Jersey.
    I am going to disagree with you. He/she was a tool provided by an NJ company, he was not an employee of the company located in Maine. There is sufficient case law out there to back that position.....assuming that he/she either has been honest in his/her postings, or sufficiently understands what happened that long ago.

    One significant factor is the fact that the income was earned 18 years ago. Therefore statutes of limitations are also a factor.

    If the OP would share how much money is involved, he/she could perhaps get better advice.

    Leave a comment:


  • ScottB
    replied
    No one that reads a post before it gets edited learns about it being edited. The thread does not show up as one with new posts.

    During 1989 did you work more than ten days in Maine? If so, you owe taxes on the income earned while working in the state. Did you work more than ten days in Maine in 1990? If so, you owe.

    I have no idea how the Maine Revenue Service learned that had income nor do I have any idea about the NJ based owner and his taxable income. However, Maine would give credit for income taxes paid to another jurisdiction. The owner would be better off paying income taxes in New Jersey rather than in Maine since the income tax rates are lower in New Jersey.

    Leave a comment:


  • ScottB
    replied
    Sorry, but you worked in Maine, you get the privilege of paying our state taxes.

    http://janus.state.me.us/legis/statu...36sec5142.html

    Leave a comment:


  • lawrencedaniels
    started a topic Unfairly taxed in Maine?

    Unfairly taxed in Maine?

    I worked for a year (6/1/89 through 5/15/90) in Maine as a consultant of a firm located in New Jersey. I was paid strictly from this N.J. firm (checks issued from New Jersey), and received no Maine-source income. I lived in Florida, and traveled to and from the state as needed. During the year, I also traveled to several other states as part of my assignments. I was not taxed from those states. Seven years after the ME assignment, I started getting dunned for past due ME state taxes. I do not feel I owe them, as I was never a resident of the state, and was paid by the NJ firm. The owner of that company did not pay state taxes for Maine even though HE was paid by the firm who employed him. He was present much of the time of the project, but was not taxed by the state. The fight from Maine has gotten very ugly, and though I provided all documentation to prove my case, they have continued to harrass me. The latest is to garnish my present wages. Please give me some insight as to what I can do, or if I am wrong in my thinking. Why should I pay those taxes and the owner of my company not? Thanks.
    Last edited by lawrencedaniels; 10-24-2007, 08:31 AM. Reason: To make clearer the situation.
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