In 2000, I resided and worked in the state of New Jersey. I filed my state tax, for which I owed a sum of money, and paid to the state of New Jersey. The state of Maine, for which I had not resided since the beginning of 1998, has been demanding the payment of my 2000 taxes and has been tacking on interest and penalty fees since. I have disputed this to no avail. My federal taxes were also filed with my residence and employment in the state of New Jersey, for which I also paid. Why is the state of Maine trying to claim that I owe them money? How do I dispute this further? I paid over $2,000 to the state of New Jersey, and my penalties and interest, tacked onto that, total over $9,000 now. Again, this is the state of Maine demanding this money.

Thank you.

For the state to be demanding you file taxes for that year, they must have received with- holdings or income information from your employer at that time.

How about contacting the employer who may have reported your income to the wrong state, and inquire as to what records they have regarding your tax problem.

If that option fails, for that amount of money, I suggest you speak to a tax attorney.

When exactly did you move to NJ? If in mid-2000, then you should have filed part-year resident income tax that year for both Maine and NJ - that's how you show Maine that you have left. If you filed in Maine in 1999 as a full-year resident, and file nothing at all with them for 2000 that would set off alarm bells.

I would suggest that in your correspondence with Maine you provide proof that you were not a resident of Maine for any portion of 2000. Do you have a copy of a lease agreement that documents the period you lived in NJ? Or perhaps copies of old bills showing NJ residency such as phone or other utilities? You might also send them a copy of your NJ income tax form for that year showing that you filed as a full-year resident there (if that's in fact what you did).

I moved to NJ in February of 1998, filed in NJ and Maine for 1998, in NJ for 1999 and on. I will submit proof of filing in state of NJ for 2000 to the state of Maine. All of my employers did not submit any income to state of Maine. We'll see where that takes me, and at that point, I will contact a tax attorney. Thank you for your responses.

You don't owe taxes to Maine. But it appears that you did not respond to some of their previous letters. This amounts to admitting from your side.
If Maine is still ready to listen to you, then send them copy of your 1999, 2000 and 2001 tax returns filed in NJ and statement that you were never in Maine during these years. Yes, you may use a tax attorney (a costly job), a CA or an experienced Enrolled Agent preferably from Maine.

Before you call the attorney, try oe last time to contact the Maine tax authorities and talk to one of their tax representatives.

Once you explain that you did NOT work or live in Maine in 1999 or 2000, and you prove it to them with copies of your 1999 and 2000 state and federal tax returns, they should realize that they have NO legal basis to tax your income.