TAX TALK

Published by the Section of Taxation of the Maryland State Bar Association, Inc.

· Robert L. Zouck, Chair ·  
Bryan W. Young, Editor, Stephanie Ketchum, Asst. Editor

Time is running out on a program that allows people who owe back taxes and interest to Maryland to settle those debts without paying costly penalties and without fear of legal action. Maryland’s Tax Amnesty, which was launched on September 1, ends on October 31, and when it’s over, it’s over. I urge you to make sure your clients are aware of how Maryland Tax Amnesty can benefit them.

Here’s how it works: taxpayers have until October 31 to pay existing liabilities or to file the returns they never filed and pay the taxes and interest due. In exchange, our office will waive the penalty and not pursue legal action, including criminal prosecution.

Amnesty covers the following tax liabilities covered by returns due on or before December 31, 2000:

Personal income tax, including fiduciary, pass-through entities, and the local tax,
Employer withholding tax,
Corporate income tax,
Sales and use tax, and
Admissions and amusement tax.

Individuals and businesses with existing tax liabilities can benefit from Amnesty, as can taxpayers whose liabilities haven’t yet been disclosed. And taxpayers who are appealing or planning to appeal an assessment can apply for Amnesty and still continue the appeal.

We all benefit from Tax Amnesty. Resolving outstanding debts and adding people to the tax rolls who’ve never been there before makes the burden fairer for everyone. And, unlike taxpayers who file and pay on a timely basis, those obtaining Amnesty must pay the tax and the accumulated interest, which in some cases can be substantial.

Amnesty offers a fresh start. But eligible taxpayers who don’t "do it now" will find harsher penalties and stepped up enforcement waiting for them after October 31. New technology being implemented now will make it easier to identify individuals who are not filing returns or who are underreporting income or sales.

Getting the message across to every Maryland taxpayer is the key to the success of Tax Amnesty, and the members of the Taxation Section of the Maryland State Bar Association are vital to that effort. If any of your clients are behind in their tax obligations, make sure they get the message that not only are their tax liabilities more likely to be identified after Amnesty but that it will cost them more when they are.

For more information on Maryland Tax Amnesty and for Amnesty forms and applications, visit our Web site at www.marylandtaxes.com or contact us at 1-800-MD TAXES or amnesty@comp.state.md.us.

Seek Amnesty. Do it now – before it’s too late.

William Donald Schaefer
Comptroller of Maryland