Pass-through Entity Withholding (941P-ME) and Returns

Partnerships and S corporations with Maine-source income were required to file annual information returns on Form 1065ME/1120S-ME through 2011. Beginning with the 2012 tax year, partnerships and S corporations are no longer required to file Form 1065ME/1120S-ME. Instead, these entities must file Form 941P if they have Maine source income and any members that are not residents of Maine. Entities may also be required to withhold income tax or obtain an exemption from withholding for nonresident member or may elect to file a composite return on behalf of the nonresident members.

Current Year (2023) Forms
These are forms due on 2023 earnings attributable to nonresident partners or shareholders.

Pass-Through Entity Withholding

Pass-through entities with income apportioned to Maine are required to withhold from the quarterly earnings for any member who is a non-Maine resident.

Pass-through Entity Withholding FAQs

Email Questions - Pass-Through Withholding

Composite Filing of Maine Income Tax for Nonresident Owners and Partnership Audit Return

A partnership or S corporation subject to withholding requirements may elect to file a composite tax return to include all the Maine-source income of nonresident partners/shareholders on one Maine income tax return.

Partnerships subject to a partnership-level audit or filing an administrative adjustment report (AAR), and tiered partners of an audited partnership who filed a modification amended return or alternative procedure report during the modification period, must complete Form 1040C-ME, Schedule 1040PA-ME to calculate the Maine tax liability or overpayment on final federal adjustments sourced to Maine for each year included in the audit or AAR, or for each year amended. More information about composite filing can be found on the forms page, from the link above.

Email Questions - Composite Return Filing

Contact Information:

P.O. Box 1060
Augusta, ME 04332-1060