Owe back taxes in Maryland? Get ready for tax amnesty on Sept. 1

If you or your organization has failed to report, under-reported or failed to pay appropriate Maryland taxes in the past decade or so, you need to be aware of the state's upcoming tax amnesty period.

To get tax amnesty, you need to act now. The amnesty only lasts from Sept. 1 to Oct. 30, and you need time to prepare.

Governor Hogan signed the bill authorizing the tax amnesty in April, but it's crucial to get started right away, or you might miss your chance. The amnesty period begins Sept. 1 and ends Oct. 30, and taxpayers in certain situations will need to come to an agreement with the Comptroller beforehand.

What are the main benefits of the tax amnesty?

  • If you file and pay within the amnesty period, Maryland will drop the civil penalties and charge you only half the accrued interest.
  • In most cases you'll be immune from criminal tax charges and penalties for the affected returns.

What's covered by the amnesty?

Unfiled or inaccurate Maryland tax returns and delinquent taxes from 2014 or earlier, involving:

  • Personal income taxes
  • Local income taxes
  • Corporate income taxes
  • Sales and use taxes
  • Admissions and amusement taxes
  • Withholding taxes

However, you're not eligible if you previously participated in a Maryland tax amnesty program between 1999 and 2014. Also, 2003 and earlier tax returns won't qualify if they were eligible for the 2004 settlement period, which applied to returns for 2003 or before.

What do I need to do?

  • If you agree you owe the taxes and can afford to pay them, it's easy. All you have to do for a delinquent or inaccurate tax return is to re-file during the amnesty period and pay the taxes owed plus half the interest accrued.
  • If you agree you owe the taxes but can't pay them, you'll need to obtain a waiver from the Comptroller.
  • If you don't believe you owe the taxes but have not taken steps to appeal them, talk to a tax attorney.

In fact, we recommend discussing your situation with an experienced tax lawyer whenever you have questions about your taxes or are undertaking an unusual tax transaction like this. 

No Comments

Leave a comment
Comment Information
  • ABA | American Bar Association
  • AV Preeminent | Peer Rated for Highest level of Professional Excellence | 2018
  • Virginia State Bar | 1938
  • Super lawyer | 2018
  • DC Bar
  • American Bar Academy of Attorney - CPAs | The power of the dual view
Email Our Team

Contact Us to Get Started Today

Located in the Washington, D.C area, we serve clients in the District of Columbia, Maryland and Northern Virginia, as well as across the country and overseas. For a free initial consultation, call 202-381-1261 or complete our brief online form.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Six Convenient Office Locations in and around the DC Metropolitan Area

Washington, D.C.
1629 K Street NW, Suite 300
Washington, D.C. 20006

Phone: 202-618-1873
Fax: 888-235-8405
Map & Directions

Columbia Office
10440 Little Patuxent Parkway, Suite 300
Columbia, MD 21044

Phone: 410-497-5947
Fax: 888-235-8405
Map & Directions

Annapolis Office
888 Bestgate Road
Suite 400
Annapolis, MD 21401

Phone: 410-497-5947
Fax: 888-235-8405
Map & Directions

Fairfax Office
8280 Willow Oaks Corporate Drive
Suite 600
Fairfax, VA 22031

Phone: 703-621-7169
Fax: 888-235-8405
Map & Directions

Rockville Office
199 E. Montgomery Avenue
Suite 100
Rockville, MD 20850

Phone: 240-599-5009
Fax: 888-235-8405
Map & Directions

Baltimore Office
400 East Pratt Street
8th Floor
Baltimore, MD 21202

Phone: 443-743-3381
Fax: 888-235-8405
Map & Directions