Maryland has enacted another tax amnesty program, which will commence on September 1, 2015. It will allow qualified taxpayers the opportunity to avoid civil penalties and one-half of the interest due on unreported, underreported, and unpaid taxes. The program will cover corporate income, personal income, sales and use, and admission and amusement taxes.
Taxpayers who participated in an earlier Maryland amnesty are not eligible to participate in this program. Taxpayers who were eligible to participate in the Delaware holding company settlement period in 2004 will also be disqualified from participating in the current amnesty program.
The current amnesty program will run through October 30, 2015.
Amnesty programs offer the opportunity to revisit the implications of state tax nexus for your organization. For example, many are unaware that a salesperson traveling in and out of states creates nexus for sales and other non-income type taxes. Solicitation activity could actually trigger income tax nexus for companies that are engaged in a service business.
If you believe you could benefit from this program, please contact Thomas Frascella at 215.734.0092 or Email or any other member of Kreischer Miller's Tax Strategies group.
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