Deadline Is Near for Maryland Tax Amnesty

Maryland Comptroller Peter Franchot reminds delinquent taxpayers that they have until Friday, Oct. 30, to take advantage of Maryland’s “Act Now, Pay Now” amnesty period. The tax amnesty program, enacted by the General Assembly, gives delinquent taxpayers one final opportunity to meet their Maryland tax liability with only half of the interest owed.

“It’s important for Marylanders to do the right thing and fulfill their legal obligations,” Franchot said in a statement. “This is a rare opportunity for tax delinquents to settle any outstanding liabilities.”

Taxpayers who failed to file a required return or pay a tax imposed on or before Dec. 31, 2014, may file an application with the comptroller requesting a waiver of all civil penalties (except for previously assessed fraud penalties) and one-half interest due. The waivers will be granted for all taxpayers who file their applications on time and meet the terms of the program. Payments made prior to Sept. 1 are not eligible for the tax amnesty program.

The following taxes are eligible for amnesty:

• Personal income tax
• Fiduciary income tax
• Pass-through entity nonresident income tax
• Corporate income tax
• Employer withholding tax
• Sales and use tax
• Admissions and amusement tax

Taxpayers who submit an application may either pay their outstanding debts in full with their application or include 10 percent of the amnesty amount due with their application, and set up a payment plan before Oct. 30. Taxpayers who choose the payment plan must complete the terms of the agreement on or before Dec. 31, 2016.

During the amnesty period, a taxpayer may not be charged with a criminal tax offense arising out of any return filed and tax paid, so long as the taxpayer does not have any pending criminal charges in the state courts and is not currently under investigation by the Office of the Attorney General, the Office of the State Prosecutor and the Office of the State’s Attorney or any office with constitutional authority.

Those who took advantage of amnesty programs in 2001 and 2009 are not eligible for the new program. Those who participated in or were eligible to participate in the Delaware Holding Company settlement established by Chapter 577 of 2004 for tax periods prior to tax year 2003 also are not eligible.

The amnesty application form is accessible at www.marylandtaxes.com or taxpayers may request a form by calling 1-800-MDTAXES or 410-260-7980 from Central Maryland.

Email requests may also be sent to: amnesty@comp.state.md.us or by regular mail to: Maryland Tax Amnesty, Comptroller of Maryland, P.O. Box 2031, Annapolis, MD 21404-2031.

Additionally, completed applications may be mailed to the address above or dropped off at any of the 12 local comptroller offices in Maryland.

An interactive tax amnesty calculator is available online to help taxpayers determine the amount of tax owed. Taxpayers with an outstanding liability can determine their amnesty liability through the agency’s Amnesty BillPay application by using the notice number on bills up to six months old.

For more information and a list of Frequently Asked Questions, visit www.marylandtaxes.com.