On April 14, 2015, Maryland Governor Larry Hogan signed Senate Bill 763 (“S.B. 763”), 2015 M.D. Laws Ch. 50, creating a Tax Amnesty Program (“Program”) for Maryland state and local income tax, withholding taxes, sales and use taxes, and admissions and amusement taxes.
The 2015 tax amnesty period will be September 1, 2015 to October 30, 2015. The Program will waive civil penalties and one-half of any interest on taxpayers who failed to file, underreported, or did not pay the tax liability for Maryland state and local income tax, withholding taxes, sales and use taxes, and admissions and amusement taxes due on or before December 31, 2014. In order for the penalties and one-half interest to be waived, the taxpayer must (1) file delinquent returns and pay the tax, including one-half of any interest, due under the return; (2) pay the tax, plus one-half of any interest, due on a previously filed return; or (3) enter into an agreement with the Comptroller to pay the tax and one-half interest. Taxpayers who were granted amnesty under prior Maryland Tax Amnesty Programs held between 1999 and 2014 are not eligible. This includes taxpayers who were eligible for the Settlement Period of July1, 2004 through November 1, 2004 (under Ch. 557 of the Acts of 2004), for tax periods prior to 2003.
S.B. 763 also provides provisions related to waiving of criminal tax offenses arising from any return filed and paid under the amnesty period. In order not to be charged with criminal tax offenses, the taxpayer must (1) file delinquent returns and pay the tax, including one-half of any interest, due under the return; (2) pay the tax, plus one-half of any interest, due on a previously filed return; or (3) enter into an agreement with the Comptroller to pay the tax and one-half interest. The amnesty from criminal charges will not apply to criminal charges pending in Maryland courts or under investigation by the Maryland Attorney General, State Prosecutor, or any political subdivisions of the State’s Attorney.
TECHNICAL INFORMATION CONTACT:
Jeremiah T. Lynch
Principal
Ryan
212.871.3901
jeremiah.lynch@ryan.com
- Topics
- Transaction Tax
- Maryland