ANNAPOLIS, Md. Maryland Comptroller Peter Franchot wants delinquent taxpayers to know that they have from September 1 through October 30, 2015 to take advantage of Maryland’s “Act Now, File Now” amnesty period. The Tax Amnesty program, enacted by the General Assembly, gives delinquent taxpayers one final opportunity to pay their Maryland tax liability with only half of the interest owed. Tax Amnesty applications will be accepted beginning September 1, 2015.
“The vast majority of businesses and individuals pay their Maryland taxes in full and on time,” said Comptroller Franchot. “Tax Amnesty is a limited and rare opportunity for tax delinquents to do the right thing by settling any outstanding liabilities. It’s important for all Marylanders to pay their taxes which support important public services that benefit everyone in our great state.”
The program is expected to increase general fund revenues by $18 million and local revenues by $4.5 million in fiscal year 2016.
Taxpayers who failed to file a required return or pay a tax imposed on or before December 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 September 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 October 30, 2015. Taxpayers, who choose the payment plan, must complete the terms of the agreement on or before December 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 two previous amnesty programs in 2001 and 2009 are not eligible for the new program. Those who participated 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 Tax Amnesty application form and other online resources will be available by August 28, 2015. The amnesty application form will be accessible at www.marylandtaxes.com, or taxpayers will be able to request a form by calling 1-800-MDTAXES or 410-260-7980 from Central Maryland. Email requests may 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.
An interactive tax amnesty calculator will also be available online to help taxpayers determine the amount of tax owed. Taxpayers with an outstanding liability will be able to 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.