Earlier this year the Maryland General Assembly passed House Bill 1233, appropriately titled the Tax Amnesty Program (the “Amnesty Program”), which provides certain delinquent Maryland taxpayers with generous tax amnesty. Maryland’s Amnesty Program began on September 1, 2015 and runs until October 30, 2015. Under the Amnesty Program, the Maryland Comptroller will (1) waive all civil tax penalties and (2) waive one-half of the interest that will have accrued against a taxpayer who failed to report taxes, failed to pay taxes, or simply underreported a tax liability.
While the window provided to taxpayers who want to take advantage of the program is relatively short, the type of taxpayers that the program is offered to is quite broad. The Amnesty Program is applicable to taxpayers who have nonpayment, nonreporting, or underreporting issues that stem from individual income tax, corporate income tax, withholding tax, sales & use tax, and admissions & amusement tax. Additionally, a unique aspect of Maryland’s Amnesty Program is that, unlike most other states’ tax amnesty programs, there is no language contained within the text of the Amnesty Program that limits or excludes taxpayers who are already under audit, have assessment appeals pending before the state taxing authority, or who have already been identified by Maryland’s taxing authority as potentially delinquent taxpayers.
The Amnesty Program generally requires a delinquent taxpayer to pay the tax owed during the amnesty period (by October 30, 2015). Maryland’s Amnesty Program, however, explicitly provides the Comptroller with the ability to allow such a taxpayer to enter into an agreement to pay such delinquent taxes over an extended period of time. Accordingly, Maryland taxpayers who are potentially or definitely delinquent with regards to their Maryland tax liability – regardless if such liability stems from individual, corporate, withholding, sales & use, or admissions & amusement tax – would be well-advised to take advantage of the Amnesty Program before it expires at the end of the month on October 30, 2015.
While the window provided to taxpayers who want to take advantage of the program is relatively short, the type of taxpayers that the program is offered to is quite broad. The Amnesty Program is applicable to taxpayers who have nonpayment, nonreporting, or underreporting issues that stem from individual income tax, corporate income tax, withholding tax, sales & use tax, and admissions & amusement tax. Additionally, a unique aspect of Maryland’s Amnesty Program is that, unlike most other states’ tax amnesty programs, there is no language contained within the text of the Amnesty Program that limits or excludes taxpayers who are already under audit, have assessment appeals pending before the state taxing authority, or who have already been identified by Maryland’s taxing authority as potentially delinquent taxpayers.
The Amnesty Program generally requires a delinquent taxpayer to pay the tax owed during the amnesty period (by October 30, 2015). Maryland’s Amnesty Program, however, explicitly provides the Comptroller with the ability to allow such a taxpayer to enter into an agreement to pay such delinquent taxes over an extended period of time. Accordingly, Maryland taxpayers who are potentially or definitely delinquent with regards to their Maryland tax liability – regardless if such liability stems from individual, corporate, withholding, sales & use, or admissions & amusement tax – would be well-advised to take advantage of the Amnesty Program before it expires at the end of the month on October 30, 2015.
For questions or assistance in applying for the Maryland Tax Amnesty Program, please contact us at (703)-595-2836 or admin@bjkanglaw.com
1.Tax Amnesty Program, MD Gen. Assembly, HB 1233 / SB 763 (2015).
2.MD Gen. Assembly, HB 1233 § 2(a)(1)(i) and (ii) (2015).
3.See MD Gen. Assembly, HB 1233 (2015).
4.MD Gen. Assembly, HB 1233 § 2(a)(2)(i) (2015).
2.MD Gen. Assembly, HB 1233 § 2(a)(1)(i) and (ii) (2015).
3.See MD Gen. Assembly, HB 1233 (2015).
4.MD Gen. Assembly, HB 1233 § 2(a)(2)(i) (2015).
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