Document Updates: Maine Notification to Buyer of Withholding Tax Requirement (Cx1570)

According to ME. Rev. Stat. Ann. tit. 36, § 5250-A, “a real estate escrow person” can be liable for withholding tax unless a written notification is provided to the buyer and the transaction is subject to Maine withholding tax.  Docutech provides Cx1570 to provide this notice to the buyer. The Maine Revenue Services (MRS) has updated their Form REW-4 and Docutech has updated Cx1570 accordingly.  The major changes are switching the telephone number to an email address, adding a statement that MRS will request a copy of the signed document, if needed, and adding functionality to the document so that Borrowers, Non-Purchase Entities, and Trusts can now sign the document.

These changes will be available for testing on Stage & Stage 2 servers. These changes will take effect on April 23, 2025. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.

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The preceding is for informational purposes only and is not and may not be construed as legal advice. No third party entity may rely upon anything contained herein when making legal and/or other determinations regarding its practices, and such third party should consult with an attorney prior to embarking upon any specific course of action.