Maine Form 941P-ME is the annual pass-through entity withholding return that partnerships, S corporations, and LLCs taxed as partnerships use to report Maine income tax withheld from nonresident members. You file it with Maine Revenue Services after the close of your tax year, along with Schedules 1P, 2P, and 3P. For the 2025 calendar year the deadline is March 16, 2026, and most entities submit through the Maine Tax Portal at revenue.maine.gov.
Who Has to File
Under 36 M.R.S. ยง 5250-B, every pass-through entity doing business in Maine must withhold state income tax from each nonresident member’s share of Maine-source income and report that withholding on Form 941P-ME.1Maine Legislature. Maine Code 36 – 5250-B – Withholding on Pass-Through Entity Income of Nonresident Partners and Shareholders “Pass-through entity” covers S corporations, general and limited partnerships, limited liability partnerships, and LLCs taxed as partnerships. Financial institutions taxed under Maine’s Chapter 819 are excluded.
A nonresident member is any individual who does not live in Maine, any business entity with its commercial home in another state, or any nonresident estate or trust. One nonresident owner is enough to create the filing obligation.
Two groups are automatically exempt from withholding and do not appear on Schedule 3P: nonresident members whose share of annual Maine-source income from the entity is under $1,000, and tax-exempt organizations such as IRAs, Keoghs, and pension plans (unless the Maine income is unrelated business income).2Legal Information Institute. 18-125 C.M.R. ch. 803, Section 06 – Pass-Through Entity Withholding for Nonresident Members
A nonresident member who wants to handle Maine taxes directly can sign Form 941AF-ME, agreeing to file Maine returns, pay estimates, and submit to Maine’s jurisdiction.3Maine Revenue Services. Nonresident Member Affidavit and Agreement to Comply – Form 941AF-ME The affidavit stays in force year to year, but you must list every exempt member on Schedule 3P each year or the affidavit is automatically revoked.
What to Gather Before You Start
Pull these together first so you can complete the return in one sitting:
- The entity’s federal EIN and Maine withholding account number.
- The federal return type (Form 1065 or Form 1120-S).
- For each nonresident member: full legal name, SSN or EIN, mailing address, and distributive share percentage.
- Each nonresident member’s share of Maine-source income for the year, calculated using the entity’s apportionment factor.
- Total Maine tax withheld for each nonresident member, which should match Box 1 on that member’s Form 1099ME.
- Copies of any signed 941AF-ME affidavits and records of members qualifying for automatic exemptions.
The blank form, instructions, and schedules sit on the Maine Revenue Services forms page under “Pass-through Entity Withholding.”4Maine Revenue Services. Pass-through Entity Taxes – 2025
Withholding Rates
You withhold at the top Maine rate for each member’s tax type. For nonresident individuals, estates, and trusts, that rate is 7.15%.5Maine Revenue Services. Individual Income Tax (1040ME) For nonresident members taxed as corporations, the rate is 8.93%.6Maine Revenue Services. Corporate Income Tax (1120ME) The member reconciles any over- or under-withholding on their own Maine return.
Filling Out the Form and Schedules
The main form is one page. Enter the entity name, address, and EIN, then check the box for the federal return type (1065 or 1120-S). Mark the amended box only if you are correcting a previously filed 941P-ME.7Maine Revenue Services. Maine Revenue Services 941P-ME Instructions Three schedules do the arithmetic.
Schedule 1P: Entity Apportionment
Schedule 1P figures out what portion of entity income is Maine-source. On Line 4a enter Maine sales; on Line 4b enter total U.S. sales. Line 4c is 4a divided by 4b, your apportionment factor. Line 5 captures total entity income or loss, and the remaining lines apply the factor to produce each member’s Maine-source share.
Schedule 2P: Withholding Listing
List every nonresident member who had tax withheld. For each one, enter the member’s name (Column 6), SSN or EIN (Column 7), whether the ID is an EIN (Column 8), distributive share percentage (Column 9), and total Maine tax withheld for the year (Column 10). The Column 10 figure should match Box 1 on that member’s Form 1099ME. Do not include amounts withheld by a lower-tier entity or real estate withholding. If you need more rows, attach additional Schedule 2P pages and enter the grand total of all pages on Line 12 of the last page.
Schedule 3P: Exempt Members
Schedule 3P lists nonresident members exempt under a 941AF-ME affidavit, the composite taxpayer exemption, or a special exemption approved by Maine Revenue Services. Members with automatic exemptions (under $1,000 or tax-exempt status) do not go here. For each listed member, enter the name (Column 13), SSN or EIN (Column 14), whether the ID is an EIN (Column 15), and distributive share percentage (Column 16).
Back to the Main Form
Check Line A if any members appear on Schedule 3P. Line B is the total count of members who were nonresidents at any point during the year. Line 1 is the total withholding from Schedule 2P, Line 12. Line 2 is total estimated payments the entity made during the year. If Line 1 exceeds Line 2, Line 3a is your balance due; if Line 2 exceeds Line 1, Line 3b is your overpayment. If the entity owns an interest in another pass-through entity or received Maine-source income on a federal Schedule K-1 from one, check the tiered-entity box below Line 3b and attach a statement with that entity’s name and EIN.
Quarterly Estimated Payments
If the entity’s total withholding for the year will exceed $1,000, you cannot wait until March to pay. You owe quarterly estimates equal to 25% of the lesser of 90% of the current year’s withholding or 100% of the prior year’s withholding.8Maine Revenue Services. Pass-through Entity Withholding FAQ The prior-year safe harbor does not apply if the prior year was shorter than 12 months, the entity was not required to withhold that year, or no annual return was filed.
Quarterly due dates for calendar-year filers:
- First quarter: April 30
- Second quarter: July 31
- Third quarter: October 31
- Fourth quarter: January 31 of the following year
Pay electronically through the Maine Tax Portal or by check using Form 901ES-ME, the estimated payment voucher for pass-through entity withholding.
Deadline and Extensions
Form 941P-ME is due the 15th day of the third month after the close of the tax year. For 2025 calendar-year filers, March 15, 2026 falls on a Sunday, so the deadline shifts to March 16, 2026.7Maine Revenue Services. Maine Revenue Services 941P-ME Instructions Fiscal-year entities apply the same rule to their own year-end.
A federal extension for Form 1065 or 1120-S (typically Form 7004) automatically extends the 941P-ME filing deadline, generally for six months but no more than eight. The extension covers paperwork only. Any tax owed on Line 3a must still be paid by the original due date. Paper filers sending an extension payment should use Form 901ES-ME.
How to Submit and Pay
The Maine Tax Portal is the primary filing channel. Log in at revenue.maine.gov, go to the withholding section, enter your data, upload Schedules 2P and 3P, submit, and save the confirmation number.9Maine Revenue Services. Pass-through Entity Withholding (941P-ME) and Returns You can authorize a direct bank transfer for any balance due in the same session.
Paper filers mail the completed return with all schedules to Maine Revenue Services. If a balance is due, include Form 941P-PV-ME, the payment voucher designed for pass-through entity withholding, with a check made payable to Treasurer, State of Maine. The mailing address on the voucher is:
Maine Revenue Services
P.O. Box 9101
Augusta, ME 04332-9101
Do not use Form 1040ES-ME for 941P-ME payments. That voucher is for individual income tax and will route your payment to the wrong account.
Composite Return as an Alternative
A partnership or S corporation can file a composite Maine income tax return that bundles all nonresident members’ Maine-source income onto one return instead of withholding separately for each.9Maine Revenue Services. Pass-through Entity Withholding (941P-ME) and Returns Members covered by a composite filing are listed on Schedule 3P as composite taxpayer exemptions. The composite return supplements Form 941P-ME; you still file the withholding form to report the arrangement.
Penalties for Late Filing or Nonpayment
If the entity’s tax liability exceeds $25 and you file late but within 60 days of a formal demand from the state assessor, the penalty is $25 or 10% of the tax due, whichever is greater. If you ignore the demand for more than 60 days, the penalty rises to $25 or 25% of the tax due.10Maine Legislature. Maine Code Title 36 Section 187-B – Penalties
Late payment carries a separate penalty of 1% of the unpaid tax for each month or partial month the balance is outstanding, up to a cumulative 25%. Interest runs on top of both penalties. An entity that fails to withhold is not off the hook just because the nonresident member later paid the tax on their own return. The entity still owes any additions to tax, penalties, and interest tied to the failure to withhold.11Maine State Legislature. Maine Code Title 36 Section 5255 – Failure to Withhold