Cx1570 is provided pursuant to Me. Rev. Stat. Ann. tit. 36, § 5250-A(2). The law states:
Every buyer of real property located in Maine must withhold a withholding tax equal to 2 1/2% of the consideration. The withholding required by this section must be transmitted to the State Tax Assessor within 30 days of the date of transfer of the property unless the State Tax Assessor authorizes the buyer to release the amount withheld, or a portion of it, to the seller. Any buyer who fails to withhold the tax is personally liable for the tax.
The Maine Revenue Services (MRS) provides a model form (Form REW-4) to outline the requirements (and exceptions) under this law. MRS has updated this model form. Accordingly, we have updated our Cx1570 “ME Notification To Buyer(s) of Withholding Tax Requirement”. The main provisions updated were:
- Reformatting of the header (removing the mailing address and fax)
- Adjusting section (f) to include an explanation of a foreclosure sale
These changes will be in effect on March 22, 2023. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.