The 2015 Maryland Tax Amnesty Program

The Maryland General Assembly recently passed a bill on April 6th, 2015, providing tax amnesty to qualifying taxpayers from September 1st, 2015, through October 30th, 2015. Approved by Governor Larry Hogan Jr. and scheduled for enactment on June 1st, 2015, the Tax Amnesty Program will “waive certain penalties and interest imposed for the nonpayment, non-reporting, or underreporting of certain taxes under certain circumstances.”   These penalties and interest include all civil penalties except for “previously assessed fraud penalties,” and fifty percent or one-half of any interest accrued on or before December 31st, 2014. Additionally, the program authorizes the Comptroller of Maryland to grant amnesty from criminal tax charges to certain taxpayers who did not file returns and or did not pay their individual income tax, corporate income tax, withholding tax, sales and use tax, or admissions and amusement tax on or before December 31st, 2014. For taxpayers with substantially larger tax debts, the program enables taxpayers to successfully pay in full their delinquent tax, by setting up a payment schedule that extends beyond the two-month amnesty period. The terms of the amnesty granted under this program are conditioned upon the taxpayer filing any delinquent tax returns and agreeing to pay the full amount of the delinquent tax plus one-half of any interest due, during the amnesty period.  Moreover, if a taxpayer who has been granted amnesty under this program defaults on their payment agreement with the Comptroller, the civil penalties and interest waiver is void.

To qualify for this program, a taxpayer must not have been previously granted tax amnesty under a Maryland Tax Amnesty program between 1999 and 2014. Additionally, certain taxpayers that were eligible for the 2004 Settlement Period for tax periods prior to 2003 are ineligible for the Tax Amnesty Program.  If you have Maryland back taxes, contact the tax attorney at Daniel Rosefelt & Associates, LLC, Attorney & CPA to learn more about the Maryland Tax Amnesty Program and to discuss your legal options.